Professional Documents
Culture Documents
48 Issue 2
Introduction
Assessing the effect of advertising expenditure is an activity undertaken
and debated by both marketers and researchers. One approach has sought
to link advertising directly with sales. This has produced mixed results,
and even those studies showing advertising as being effective have rarely
provided any indication as to why. An alternative approach seeks to
determine the effect of advertising on intermediate variables such as brand
perceptions, attitudes, awareness or equity. One such intermediate variable
is the link between the brand name and desired attributes in buyer
memory. These brand-attribute linkages have long been acknowledged as
important aspects of brand equity/knowledge (Keller 1993, 2003).
One strategy of advertising campaigns is to focus on a central theme
(e.g. ‘we offer excellent service’), with the objective of developing specific
Background
The measurement of advertising effectiveness has been evolving over many
years. Competition for marketing budgets from more easily measured
activities, such as price promotions and direct marketing campaigns, has
raised issues of accountability for the money spent on advertising, as well
as assessing return on investment (Feldwick 1996). Thus, the expectations
of what advertising can achieve, and therefore the most appropriate
advertising objectives and how to measure them, have also been widely
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debated (e.g. Jones 1990; Ehrenberg et al. 2000). Despite this, the tools
used for advertising evaluation seem to have remained consistent. These
measures include unprompted and prompted advertising awareness, recall,
recognition and understanding of the advertising content or message
(McDonald 2000). Essentially, these measures also look at the short-term
effects of advertising efforts, with a focus on customer memory structures
rather than directly on sales.
Marketing activities are undertaken with the goal of changing or
reinforcing the consumer ‘mindset’ in some way. This includes thoughts,
feelings, experiences, images, perceptions, beliefs and attitudes towards a
brand. Keller and Lehmann (2003) describe five dimensions as being
important measures of the consumer mindset:
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than brands that have fewer users. The slight exception to this pattern is
for highly descriptive attributes, which describe functional aspects of the
brand. Here, non-users are also highly likely to mention a brand; however,
brand users will still have a higher propensity (Barwise & Ehrenberg 1985;
Hoek et al. 2000). Changes in a brand’s usage levels – for example, due to
sampling changes, a change in shelf space or distribution – will thus lead
to complementary changes in brand response levels, regardless of any
advertising activity. There needs to be control for this during advertising
effectiveness analysis, to ensure that the impact of advertising is isolated
and correctly attributed.
The second influence is the degree to which the attribute defines the
category, or its prototypicality (Nedungadi & Hutchinson 1985; Ward
et al. 1992). The more often an attribute is mentioned across all brands,
the more prototypical it is considered to be (Rosch & Mervis 1975;
Romaniuk & Sharp 2000). For example, the attribute of ‘quick service’
would be more prototypical in the fast-food market than, say, ‘healthy’.
Empirically, all brands would gain more responses for ‘quick service’ than
they would for ‘healthy’. It would be expected that prototypicality levels
would change over time, as particular attributes become ‘standard’ in an
industry. For example, ‘has low carbohydrates’ in a food market would
have gained only a few responses for any food brand three years ago. Now,
however, the attribute would gain more responses across all brands as
consumers have become more aware of this feature within the food
market, and marketers focus on this attribute in their communications and
packaging. Likewise, prototypicality levels can decrease as attributes
become less relevant. For example, in the banking industry, it would be
expected that the prototypicality levels of ‘having convenient branches’
would have declined as other non-branch methods of doing banking have
increased.
Romaniuk and Sharp (2000) demonstrated a technique whereby an
expected response level for each brand on each attribute can be
established, by drawing on these two patterns of usage and prototypicality,
and utilising a chi-squared-type calculation. This expected value can then
be used to identify deviations, which can highlight each brand’s strengths
or weaknesses, relative to competitors. Given that the purpose of
advertising is to create these strengths, or reduce these weaknesses, we
suggest that this technique can be used to identify the impact of
advertising, by controlling for changes that are due to variations in usage
or prototypicality levels.
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Research method
This study is an evaluation of brand image studies from two different
markets: fast food and financial services. In both studies, brand
perceptions were measured using a free response attribute to brand
association method, which is commonly used in market research (Brown
1985). A number of brand names were read out to respondents, who were
told to record the brands. Then a randomised set of attributes was
provided and respondents were asked which of the brands, if any, they
associated with each of the attributes. The result is then the percentage of
the sample that associated each brand with each attribute, with raw
percentage changes determined by comparing the figures over time. An
example of this is shown in Table 1.
An alternative approach to determining the change in perceptual
responses over time is to calculate an ‘expected’ value. The approach we
use in this paper is based on the method demonstrated in Romaniuk and
Sharp (2000), whereby all of the brand and attribute data are recorded in
a contingency table. The row and column totals are then used in the
following manner to establish expected values:
Expected value (B1, A1) = Row total (A1) *Column total (B1)
Table total
This provides a figure for each brand, on every attribute, that can be
compared with the observed figures to produce the ‘deviation from
expected’ value. The differences in these deviations can then be compared
over time. So, rather than 56% followed by 50% of respondents
associating a brand with an attribute (a change of –6% over time), the
deviations might be +13 and +10, which would be a difference of
3 percentage points over time.
This study analyses the two approaches, comparing changes in both raw
percentages and deviations from expected figures for the same
brand/attribute combination – for example, Brand X for ‘good value’ raw
Table 1 Results for Brand X: raw percentage and deviations from expected changes over
time
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Results
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Table 2 Fast-food market: raw percentage changes over time compared with deviations from
expected changes over time
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which was not picked up in the raw percentage figures (which indicated a
decrease of 1%). Similarly, for Brand 3, for ‘sells ice cream cakes’, an
insignificant change of –3% becomes a more significant –5%.
To test H2, we compared the remaining significant attribute changes
with the messages of campaigns run by these five brands. Only two brands
(3 and 5) ran campaigns with sufficient mass-media weight to expect
change. Therefore we would expect no major positive changes from
Brands 1, 2 or 4, but possibly negative changes if Brands 3 or 5 were
successful in building stronger links to specific attributes. During the time
between data collection for the two waves, Brand 3 ran a campaign that
emphasised a ‘new menu’ with regularly changing products. The focus of
the campaign was continuously on a ‘changing menu’ with specific sub-
campaigns focusing on individual product sets at any one point in time.
This campaign was run extensively and the advertising spend was at least
20 times that of the nearest competitor. This activity can be linked to the
positive increase in deviation for the attribute ‘always introducing new
products’, which is the only significant positive change for this brand.
Brand 5 ran campaigns focusing on two products – new favours of
smoothies and ice cream cakes. This is apparent in a positive change in
deviation from expected figures, for the attributes ‘sells ice cream cakes’,
‘unique flavours’ and ‘sells smoothies’. Further, a greater negative
deviation is evident for Brand 3 on this attribute, suggesting the
strengthening of the link by Brand 5 has weakened the presence of Brand
3. This is one example where controlling for known patterns influences the
interpretation of results by highlighting a change that would otherwise
have gone unnoticed.
Looking at the raw percentages in Table 2, it would have been assumed
that both Brand 2 and Brand 5 suffered decreases across many of the
brand/attribute combinations. But when the figures for Brand 5 are
adjusted to control for known patterns, the decrease in brand/attribute
association is reduced. While Brand 4 (and to a lesser extent Brand 5)
suffered decreases for the attribute ‘wide flavour range’ in the raw
percentages, when usage and prototypicality is controlled for, these
differences are also reduced. Given there were no campaigns directly
focused on this attribute, the latter result is more in line with what would
be expected from the campaigns actually run. Therefore the results
support H2. Incorporating prior knowledge and controlling for known
patterns meant the changes that could be attributed to advertising activity
were more easily detected and interpreted, thus providing a better measure
of advertising effectiveness.
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Table 3 Financial services market: raw percentage changes over time compared with deviations from expected changes over time
For the attribute ‘investment products’ we can see that all brands record
an increase in raw percentages, which disappear once usage and
prototypicality are taken into account. In this instance, the wave 3 survey
was conducted post-end of financial year, where investments, as a
category, were less prevalent in the marketplace (as people were paying off
their taxes and/or waiting for returns). However for wave 4 everything
was back to its normal level, so what looks like an apparent rise is really
just a ‘seasonal’ effect. We see a similar pattern occurring across all brands
for the attribute ‘confident’, which also showed a systematic increase in
the number of overall responses, or prototypicality, over the two time
periods. This again reinforces the benefits of controlling for these external
patterns.
To test H2, we examined the media schedule for each of the brands for
each quarter. While putting an advertisement to air does not guarantee
effectiveness (some advertisements do not affect any brand perceptions) we
should be able to link positive changes back to specific campaigns. As a
further check we should not see major positive changes that cannot be
linked to specific campaigns. Brand A has no deviations that remain
significant. Brand B is a community-based bank and ran a corporate
campaign around this community-based positioning, and we see a
consistent positive change for a ‘bank for everyone’.
Brand C ran a credit card-based campaign in wave 4, which appears to
be linked to its consistent increase in that attribute. It also has a consistent
decrease in home loans, which is probably linked to the only major
increase in that attribute for Brand E. Brand E ran a home loan campaign
during wave 4, and this appears linked to a positive change for that brand
on that attribute. There were no significant changes for Brands D, F or G.
Two of the three brands did run campaigns, with Brand D running one on
‘guides to buying houses’, and Brand F running a corporate campaign and
one about its home loan products. These campaigns appear not to have
had a noticeable effect on the buyer memory structures measured here.
Therefore while there was definitely advertising that did not affect the
brand perceptions included in this research, the changes we could identify
after controlling for usage and prototypicality did seem to be able to be
explained through the advertising messages put forward. This provides
support for H2.
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Discussion
This paper illustrates how controlling for known patterns in brand
attribute responses can lead to more clarity in interpreting the impact of
advertising. The two patterns are the effect of usage and the
prototypicality of the attributes within any particular survey. While
changes in these factors in themselves can provide insight, they cloud the
ability to detect advertising-related changes. Therefore we recommend
controlling for, but not ignoring, these wider market changes.
We demonstrated, using data across two very different markets, how the
analysis of raw percentage changes in responses can lead managers to
draw erroneous conclusions. The changes in perceptual responses from
one wave of the study to another were overstated, and some important
message-related changes were missed.
Controlling for these patterns reduces the number of major differences
to focus on, and is therefore easier to interpret. We were able to illustrate
this by comparing the messages from specific campaigns with the
significant differences over the two waves. While we recognise that this
can be a subjective assessment, it does appear to have face validity.
Importantly, the objective assessment of the reduction of the brand-
attribute relationships that warrant attention, using an approach that
controls for known patterns, provided a clear benefit to those interpreting
brand tracking data.
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