For example, Levin and Gaeth (1988) found that ground beef tasted better when consumers were told beforehand that it was 85% lean than 15% fat. Pretests indicated that Jay Leno (talk-show host) and Michael J. Monroe, Kent (1973), "Buyers' Subjective Perceptions of Price," Journal of Marketing Research, 10 (February), 70-80. Hypothesis 2b predicted that the peripheral-cue effect would be stronger when the two brands were said to have the same overall quality. Hypothesis 2a was not supported. J”à†cpgzˆÛ ‡Åñß8ž•,½«W­ÊÇ}›ìÛøÕEõ4"÷ú¢ò;¾{*«OgØ.؋_òz×¼^ V¡e¸ŠÈ4ÂÑ{¦{V§Õ󒭤êdu-îx) Gangseog Ryu, University of Pittsburgh, NA - Advances in Consumer Research Volume 22 | 1995, Anne Hamby, Hofstra University Liking for peripheral cues led over 30% of the people to choose a brand dominated on objective product features. EXPERIMENT 1 Experiment 1 tests the impact of consumers' evaluations of peripheral cues on choice. Content Filtrations 6. For example, after hearing a political debate you may decide to vote for a candidate because you found the candidates views and arguments very convincing. At least three definitions or indicators of market inefficiency exist: (1) the existence of dominated brands, (2) prices higher than the point where marginal cost equals marginal revenue (supernormal profits), and (3) lower price-quality correlations. Moreover, Brand L's weakness was relatively small or relatively large. Each indicator faces validity questions. The Peripheral Route. A modified version of this explanation, however, is plausible, although it is consistent with the conclusion that peripheral cues led consumers to nonoptimal choices. The current study extends this research by showing that peripheral cues can lead consumers to choose objectively inferior brands. peripheral cue negatively impacting attitudes toward the couple and ad in situations where elaboration is low. It is often used to remind consumers of the BrandMake a useful lasting impression - encourage the target audience to switch brands, make the purchase, and create a preference in the market for the product as opposed to its competition, TOOL to help you define your brand and product characteristics!The Brand Wheel works best when:the essence synthesizes the whole of the attributes, benefits, values and personality of the brandno more than a few items appear in each of the four headingsyou only use items that are truly competitive and relevant and so add genuine leverage. Four brands were presented within a given choice set. Scribd will begin operating the SlideShare business on December 1, 2020 The implication is that liked peripheral cues can make up for deficits on objective product features (i.e., a compensatory model with peripheral and central cues). Subjects choosing the dominated brand rated the importance of quality and rewind speed significantly above the scale's mid-point (M=7.45; t(21)= 5.24, p <.01). Some people credit advertising with improving markets by supplying information and stimulating competition (e.g., Stigler 1961). The only significant effect on choice was that of spokesperson liking. Gaeth, Gary J. and Timothy B. Heath (1987), "The Cognitive Processing of Misleading Advertising in Young and Old Adults," Journal of Consumer Research, 14 (June), 43-54. Subjects choosing the dominated brand rated the importance of quality and rewind speed significantly above the scale's mid-point (M=7.45; t(21)= 5.24, p <.01). Whether profits are considered supernormal can depend on the accounting methods used. In cameras, Brand N's zoom ratio was 4 to 1 whereas Brand L's was 3 to 1 (see Appendix B). Discussion The results of Experiment 1 demonstrate that peripheral cues can lead consumers to choose objectively inferior brands. However, the higher-order interactions were not estimable due to small n's. Michael S. McCarthy, Miami University The procedure was comparable to that of Experiment 1. Companies try to persuade celebrities to wear their clothes and jewelry, or use their products. They extend these findings by showing that the effects are not limited to situations in which trade-offs exist across brands. Essential evidence, unlike peripheral evidence, cannot be possessed by the customer. Now customize the name of a clipboard to store your clips. Thomas Novak, George Washington University, USA. Therefore, it appears that they were willing to trade off quality or rewind speed for a spokesperson's recommendation. Brand information was summarized in a table following the four ads (see Appendix B). hospitals, resorts, child care), while others provide limited physical evidence (e.g. Service organizations with competing service products may use physical evidence to differentiate their service products in the marketplace and give their service products a competitive advantage. For example, Russia's anti-capitalistic heritage might leave Russians less susceptible to advertising's persuasive efforts. Sponsorship is one form of peripheral marketing. David L. Mothersbaugh, University of Pittsburgh. Subjects reported evaluating experimental brands more carefully than household products (M=4.91; t(134)= 16.56, p <.01) but about as carefully as consumer electronics products (M=1.74; t(134)= 1.74, ns). The implication is that peripheral cues can generate market inefficiencies and potentially damage consumer welfare. Timothy B. Heath, University of Pittsburgh For example, consumers may have reasoned that if the smaller cabin was large enough for a given spokesperson, then it was large enough for them. Brand L, the dominated target brand, always had vivid ad copy or the famous spokesperson (Jay Leno), whereas Brand N had less vivid ad copy or a nonfamous spokesperson (Alex Tyler). Heath, Timothy B., Michael S. McCarthy, and David L. Mothersbaugh (1994), "Spokesperson Fame and Vividness Effects in the Context of Issue-Relevant Thinking: The Moderating Role of Competitive Setting," Journal of Consumer Research, 20 (March), 520-534. Hila Riemer, Ben Gurion University, Israel Hypothesis 2a predicted that reporting equivalent overall quality across the dominated and dominating brands would increase the peripheral-cue effect on choices of the dominated brand. We assess the influence of advertising's peripheral or heuristic cues, nonproduct features such as a spokesperson's fame and liking (Chaiken 1980; Petty and Cacioppo 1986). Fifty-six undergraduate marketing students participated in the experiment as part of an in-class exercise for which they received extra-credit points. Miniard, Paul W., Deepak Sirdeshmukh, and Daniel E. Innis (1992), "Peripheral Persuasion and Brand Choice," Journal of Consumer Research, 19 (September), 226-239. Advertising bombards people from billboards, televisions, radio, magazines and even T-shirts. Product placement on the periphery often catches the eye of consumers. Heath, Timothy B., Michael S. McCarthy, and David L. Mothersbaugh (1994), "Spokesperson Fame and Vividness Effects in the Context of Issue-Relevant Thinking: The Moderating Role of Competitive Setting," Journal of Consumer Research, 20 (March), 520-534. This awesome company. As in Experiment 1, this effect cannot be attributed to no weight being placed on the attributes on which the dominated brand was inferior. Celebrity spokespersons for products are one of the oldest types of peripheral marketing. (b) Focus on the Buyer-seller Relationship: This approach focuses on the relationship between the buyer and the seller. The use of a credit card means: (a) The service can be separated from the seller; (b) Intermediaries can be used in distribution thereby expanding the geographic area in which the service marketer can operate; (c) The service product of one bank can be differentiated from the service product of another bank (e.g. The current study suggests that consumers in these countries are just as susceptible to advertising-generated biases as consumers in the West. Shimp, Terence A. and Larry Gresham (1983), "An Information Processing Perspective on Recent Advertising Literature," in Current Issues and Research in Advertising, eds. Contrary to Hypothesis 2, the peripheral-cue effect on choices of dominated brands was not moderated by additional information on the brands. TABLE 1 PROBABILITY OF CHOOSING THE DOMINATED BRAND IN EXPERIMENT 1 The findings are subject to three alternative explanations. Stigler, George J. Experiment 1 tests the following hypotheses: H1: Positive evaluations of a dominated brand's peripheral cues will (a) increase the probability that the dominated brand is chosen (increasing inefficiencies), and (b) improve attitudes toward the dominated brand. Although these effects extend popular multi-process theories of persuasion, they need not reflect detrimental advertising effects since chosen brands were not necessarily inferior to unchosen brands. Faith Popcorn and Lys Marigold, in their book "EVEolution: The Eight Truths of Marketing to Women" give the example of an art gallery owner who often fielded requests from patrons about the lighting he used in a gallery. The procedure was comparable to that of Experiment 1. We assess the influence of advertising's peripheral or heuristic cues, nonproduct features such as a spokesperson's fame and liking (Chaiken 1980; Petty and Cacioppo 1986). Fifty-six undergraduate marketing students participated in the experiment as part of an in-class exercise for which they received extra-credit points. The probability of choosing dominated brands across experimental conditions is summarized in Table 1. Others believe advertising damages markets by erecting barriers to entry, providing no information or misinformation, and promoting competition on nonsubstantive features such as an ad's humor (e.g., Norris 1984; Shimp and Gresham 1983). Therefore, two models were run separately: one with the main effects of peripheral-cue liking and presence of quality ratings, and the other with the main effect of peripheral-cue liking and the interaction between peripheral-cue liking and presence of quality ratings. See our User Agreement and Privacy Policy. Peripheral-cue liking generated greater shares for dominated brands (36% vs. 3%; c2(1)= 6.80, p <.01). General elements of physical evidence are shown in Table 9.1. The first measured how carefully subjects evaluated the experimental brands relative to how carefully they evaluate household products such as paper towels, laundry detergents, and cleansers. Michael S. McCarthy, Miami University. Two product classes (cameras and cruises) and two types of peripheral cue (spokesperson and ad copy) were tested to enhance generalizability. Therefore, it appears that consumers make decisions in part on the basis of persuasive marketing messages that then lead them to choose objectively inferior brands, brands they would not choose otherwise. Method Subjects consisted of 134 students at Russia's Railway Institute in St. Petersburg who were paid $2 (U.S.) for their participation (the institute is similar to an engineering college in the U.S.). The findings of the current study suggest that relatively innocuous advertising stimuli such as a spokesperson or vivid text might be enough to draw a consumer into detrimental behaviors when s/he is relatively undecided (e.g., Joe Camel). It has however little or no independent value. The results show that in both the U.S. and Russia, well-liked peripheral cues increase the probability of choosing objectively inferior brands even when consumers think hard about their decisions.

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