Advertising and Promotion Management Commons^™

Vertical Differentiation And A Comparison Of Online Advertising Models, Mei Lin, Xuqing Ke, Andrew B. Whinston

Research Collection School Of Computing and Information Systems

Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiation in both monopoly and duopoly settings, in which online service providers may offer an ad-free service, an ad-supported service, or a combination of these services. Offering both ad-free and ad-supported services is the optimal strategy for a monopolist because ad revenues compensate for the cannibalistic effect of vertical differentiation. In a duopoly equilibrium, exactly …

On The Value Relevance Of Retailer Advertising Spending And Same-Store Sales Growth, Kapil R. Tuli, Anirban Mukherjee, Marnik Dekimpe

Research Collection Lee Kong Chian School Of Business

In response to recent calls to study factors that determine a retailer's stock price, this study draws on signaling theory to examine the impact of two key marketing metrics that are widely disclosed by retailers to investors, advertising spending and growth in same-store sales (COMPS), and highlights the moderating role of various firm- and sector-specific factors. Using a stock-response model estimated on a sample of 1,646 observations for 257 retailers, the authors find that the value relevance of advertising spending and COMPS depends on the financial condition of, and the competitive pressures faced by, the retailer. In addition, the positive …

Spillover Effects Of Ingredient Branded Strategies On Brand Choice: A Field Study, Swaminathan Vanitha, Srinivas K. Reddy, Sara Loughran Dommer

Research Collection Lee Kong Chian School Of Business

Ingredient branding, or the use of two or more brand names on a single product, is widely seen as providing significant benefits in terms of increased product differentiation and greater market share. The association between two brand names can both enhance and dilute the brand equity of the host brand name and the ingredient brand name. This research examines the behavioral spillover effects associated with cobranded strategies across segments of consumers that vary in their prior brand commitment or loyalty. Different from previous research, this paper uses A.C. Nielsen scanner panel data to investigate the behavioral spillover effects of ingredient …

Optimal Advertisement Scheduling In Breaks Of Random Lengths, Ajay Srinivasan Aravamudhan

Dissertations and Theses Collection (Open Access)

Broadcasters generate a large part of their revenue through advertising, especially in live sports. Scheduling advertisements can be challenging in live broadcasting, however, for sports such as Cricket that have breaks of random lengths and number during which the ads are shown. This uncertainty, coupled with the high price of spots for major competitions, means that improving ad scheduling can add significant value to the broadcaster. This problem shares similarities with the stochastic cutting stock problem and the dynamic stochastic knapsack problem, with applications in the wood, steel and paper industry and the transportation industry respectively.

This dissertation adds to …

Advertising Collusion In Retail Markets, Kyle Bagwell, Gea M. Lee

Research Collection School Of Economics

We analyze non-price advertising by retail firms, when the firms are privately informed about their respective costs of production. In a static advertising game, an advertising equilibrium exists in which lower-cost firms select higher advertising levels. In this equilibrium, informed consumers rationally employ an advertising search rule in which they buy from the highest-advertising firm since lower-cost firms also select lower prices. In a repeated advertising game, colluding firms face a trade-off: the use of advertising can promote productive efficiency, but only if sufficient current or future advertising expenses are incurred. At one extreme, if firms pool at zero advertising, …

Advertising Competition In Retail Markets, Kyle Bagwell, Gea Myoung Lee

Research Collection School Of Economics

We consider non-price advertising by retail firms that are privately informed as to their respective production costs. We construct an advertising equilibrium, in which informed consumers use an advertising search rule whereby they buy from the highest-advertising firm. Consumers are rational in using the advertising search rule, since the lowest-cost firm advertises the most and also selects the lowest price. Even though the advertising equilibrium facilitates productive efficiency, we establish conditions under which firms enjoy higher expected profit when advertising is banned. Consumer welfare falls in this case, however. Under free entry, social surplus is higher when advertising is allowed. …

Advertising Competition In Retail Markets, Kyle Bagwell, Gea M. Lee

Research Collection School Of Economics

We consider non-price advertising by retail firms that are privately informed as to their respective production costs. We construct an advertising equilibrium, in which informed consumers use an advertising search rule whereby they buy from the highest-advertising firm. Consumers are rational in using the advertising search rule, since the lowest-cost firm advertises the most and also selects the lowest price. Even though the advertising equilibrium facilitates productive effi ciency, we establish conditions under which firms enjoy higher expected profit when advertising is banned. Consumer welfare falls in this case, however. Under free entry, social surplus is higher when advertising is …

Advertising Collusion In Retail Markets, Kyle Bagwell, Gea M. Lee

Research Collection School Of Economics

We analyze non-price advertising by retail firms, when the firms are privately informed about their respective costs of production. In a static advertising game, an advertising equilibrium exists in which lower-cost firms select higher advertising levels. In this equilibrium, informed consumers rationally employ an advertising search rule in which they buy from the highest- advertising firm, since lower-cost firms also select lower prices. In a repeated advertising game, colluding firms face a tradeoff: the use of advertising can promote productive efficiency but only if sufficient current or future advertising expenses are incurred. At one extreme, if firms pool at zero …

Differential Reliance On Feelings In The Present Vs. The Future (Or Past): Affect As A Decision Making System Of The Present, Hanwen Hannah Chang, Michel Tuan Pham

Research Collection Lee Kong Chian School Of Business

We posit that compared to the cognitive system, the affective system of judgment and decision making is relatively more engaged in the present. Specifically, we hypothesize that even if their accessibility is held constant, affective feelings are weighted more heavily in consumer judgments and decisions set in the present than in equivalent judgments and decisions set in the future or in the past. Consistent with this proposition, results from six experiments show that (a) compared to a more distant future, a nearer future increases consumers’ relative preferences for options that are superior in terms of integral affect over options that …

Real-Time Evaluation Of Email Campaign Performance, Andre Bonfrer, Xavier Dreze

Research Collection Lee Kong Chian School Of Business

We develop a testing methodology that can be used to predict the performance of e-mail marketing campaigns in real time. We propose a split-hazard model that makes use of a time transformation (a concept we call virtual time) to allow for the estimation of straightforward parametric hazard functions and generate early predictions of an individual campaign's performance (as measured by open and click propensities). We apply this pretesting methodology to 25 e-mail campaigns and find that the method is able to produce in an hour and fifteen minutes estimates that are more accurate and more reliable than those that the …

Advertising And Collusion In Retail Markets, Kyle Bagwell, Gea Myoung Lee

Research Collection School Of Economics

We consider non-price advertising by retail firms that are privately informed as to their respective production costs. We first analyze a static model. We construct an advertising equilibrium, in which informed consumers use an advertising search rule whereby they buy from the highest-advertising firm. Consumers are rational in using the advertising search rule, since the lowest-cost firm advertises the most and also selects the lowest price. Even though the advertising equilibrium facilitates productive efficiency, we establish conditions under which firms enjoy higher expected profit when advertising is banned. Consumer welfare falls in this case, however. We next analyze a dynamic …

Financial Value Of Brands In Mergers And Acquisitions: Is Value In The Eye Of The Beholder?, Cem Badahir, Sundar G.Bharadwaj, Rajendra Kumar Srivastava

Research Collection Lee Kong Chian School Of Business

Firms frequently engage in merger and acquisition deals. In these transactions, brands account for significant but differential proportions of overall transaction value. Extant marketing literature on financial value of brands focuses on drivers of financial value only within a firm. However, in a merger and acquisition context, value of brands also depends on how their new owners might leverage them in the marketplace. This study identifies and empirically tests both the target and acquirer characteristics that affect the value of target firm’s brands in mergers and acquisitions. Furthermore, the authors examine the moderating role of deal type and target firm …

The Korean Language And The Effects Of Its Honorifics System In Advertising: Deferential Vs. Informal Speech As Regulatory Prime On Persuasive Impact, Jin K. Han, Yong Seok Sohn, Kun Woo Yoo

Research Collection Lee Kong Chian School Of Business

A very prominent feature of the Korean language is its extensive honorifics system, where the speaker is obliged to adopt a level of speech (deferential vs. informal) befitting the status of the target audience. As the context for using deferential (informal) speech parallels the setting for prevention (promotion) focus, we set out to examine whether the Korean honorifics system itself functions as a natural prime for regulatory orientation. In Study 1, we find that deferential (informal) speech style activates prevention (promotion) focus in the addressee. Accordingly, we show that ad copies in deferential (informal) speech style resulted in regulatory fit …

Get The Smu Edge: Make A Difference [Advertisement], Singapore Management University

SMU Press Releases and News

Get the SMU edge, make a difference. Featuring Lim Kong Wee, Steven Miller, Darren Lim, Deborah Ong (PricewaterhouseCoopers), Tan Siang Leng.

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I Love Smu: Heart, Life, Passion, Soul [Advertisment], Singapore Management University

SMU Press Releases and News

Celebrating the unconventional, the intriguing, the undaunted. Experience the SMU spirit. Heart: Jenny Foo; Life: Tan Chee Wee; Life: Joven Lai; Soul: Jeremy Nguee; Passion: Richard Ho, Johny Tay.

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Broadcast Scheduling For Mobile Advertising, Bert De Reyck, Zeger Degraeve

Research Collection Lee Kong Chian School Of Business

We describe a broadcast scheduling system developed for a precision marketing firm specialized in location-sensitive permission-based mobile advertising using SMS (Short Message Service) text messaging. Text messages containing advertisements were sent to registered customers when they were shopping in one of two shopping centers in the vicinity of London. The ads typically contained a limited-time promotional offer. The company's problem was deciding which ads to send out to which customers at what particular time, given a limited capacity of broadcast time slots, while maximizing customer response and revenues from retailers paying for each ad broadcast. We solved the problem using …

Smu: We Are Different [Advertisement], Singapore Management University

SMU Press Releases and News

Cowan is different. He's chosen to study at SMU. Wah Yeow knows the difference. He sees SMU students in action. Steve knows the difference. He heads SMU's School of Information Systems. Su Phin is different. She's an SMU student.

SMU advertisment, featuring Cowan Phan, jumping student, Tan Wah Yeow (KPMG), Steven Miller, Teo Su Phin, jumping student.

Smu: We Mean Business: We Are Different, Singapore Management University

SMU Press Releases and News

We believe it takes a different type of person to excel in the new economy. Which is why SMU is a different kind of university. One with a progressive curriculum, unique teaching methods and a world-class faculty.

SMU advertisments, Ng Peng Fong, Marina Rumi Ibrahim, Elsie Lin, featured students doing hand stand, jumping and back bend.

Investigating The Effects Of Store-Brand Introduction On Retailer Demand And Pricing Behavior, Pradeep K. Chintagunta, Andre Bonfrer, Inseong Song

Research Collection Lee Kong Chian School Of Business

The effects of the introduction of a store-brand into a particular product category are studied. The paper focuses on the effect of store-brand introduction on the demand as well as on the supply side. On the demand side, the changes in preferences for the national brands and price elasticities in the category are investigated. On the supply side, the effects of the new entrant on the interactions between the national brand manufacturers and the retailer introducing the store brand are studied, including how these interactions influence the retailer's pricing behavior. In doing so, it is possible to test whether the …

Recent Developments In The Law Of Comparative Advertising In Italy: Towards An Effective Enforcement Of The Principles Of Directive 97/55/Ec Under The New Regime?, Irene Calboli

Research Collection Yong Pung How School Of Law

On February 25, 2000, the Italian Government adopted Legislative Decree No. 67, which enacted Directive 97/55/EC amending Directive 84/450/EEC concerning misleading advertising, so as to include comparative advertising. Contrary to what one could have expected in a country that has traditionally banned comparison in advertisements, Italy was one of the first among the Member States to implement Directive 97/55/EC. In order to allow consistent enforcement practices, however, the adoption of the new law must be followed by a profound change in the ways Italian courts and legal operators have approaches this issue so far. This Article explore this issue and …

Technology Selection And Commitment In New Product Development: The Role Of Uncertainty And Design Flexibility, V. Krishnan, Shantanu Bhattacharya

Research Collection Lee Kong Chian School Of Business

Selecting the right technologies to incorporate in new products is a particularly challenging aspect of new product definition and development. While newer advanced technologies may offer improved performance, they also make the product development process more risky and challenging. In this paper, we focus on the problem of technology selection and commitment under uncertainty, a major challenge to firms in turbulent environments. We argue that the ''pizza-bin'' approach of rejecting prospective technologies outright may not serve firms well when the pressure to differentiate products is enormous. After motivating the challenges and decisions facing firms using a real-life application from Dell …

Corporate Name Vs Brand Name: Demystification Of Controversy, B. C. Ghosh, Min Lie Chan, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

The board of directors worry about it, researchers paper it, and ad men talk about it. But few managers really know whether or not image affects the purchase of the company’s products - particularly in the consumer market” [Hardy 1970, pg. 70]. Up till today, there remains a general lack of understanding of the determinants and consequences of corporate associations, though researchers have begun to make inroads [Brown, 1997]. Addressing the above issue, the overall objective of this paper is to determine if there is any congruence between promoting consumer brand name in the FMCG industry and the retailers’ corporate …

A Comparison Of The Perceptions Of Clients And Design Consultants Toward Corporate Identity Programs, Dae Ryun Chang, Don Ryun Chang, Kwon Soo Lee

Research Collection Lee Kong Chian School Of Business

Although much attention has been given to the importance of developing and using corporate and brand identity programs (from hereon essentially combined and referred to as CI), in the business literature in contrast academic treatment is less abundant and in particular there is little research on their actual implementation. While the motivation for the emergence of CI is easily understood, what is not clear is how effective these programs are after implementation. In this paper we focus on two communities responsible for the creation and implementation of identity programs, the clients and the designers. Even within client corporations of CI …