Dan Sarel

Comparative Advertising Effectiveness: The Role of Involvement and Source Credibility

Abstract Previous research on the persuasive impact of comparative advertising has produced inconsistent results. Consequently, researchers have suggested lack of credibility and the need for higher involvement as two problems which might impede the persuasive impact of comparative advertising. However, virtually no empirical evidence comparing the effects of comparative advertising to non-comparative advertising when different levels of involvement are activated exists. In addition, little research has examined whether source credibility enhances the persuasive impact of comparative advertising. Attribution theory provided the framework for the experiment reported in this paper. Experimental results suggest that when higher involvement is activated and a source of higher credibility is included in the advertisements, comparative advertising for a new brand has a more positive effect on purchase intentions than non-comparative advertising.

Managing the delayed service encounter: the role of employee action and customer prior experience

Despite the increased attention being paid to service delivery, lengthy waits for service are still common. This paper provides a conceptual and empirical examination of the effects of perceived employee action and customer prior experience, on reactions to service delays. The results of a field study of customers experiencing actual delays in a major retail bank are then discussed. The findings indicate that events and actions taking place prior to, during, and after the delay, affect consumer response. First, customers’ prior experience with that service provider is critical. Contrary to much of the literature on expectations, customers who had frequently experienced delays in the past were even more angered by the current service failure. Second, perceived employee effort during the delay had a tremendous impact on customers’ reactions. Irrespective of the length of the delay, when employees are perceived as not making a real effort, customer anger is high. Third, the impact of an apology is more compl...

Increasing the persuasiveness of a service guarantee: the role of service process evidence

After investing in service quality improvement programs, firms may realize that they still face a daunting challenge: How should they persuade consumers that service has actually improved? One way of attempting to persuade consumers is to offer a service guarantee. But are guarantees credible? Are they really effective? Can they overcome consumers’ prior negative experience? Surprisingly, the topic has received very little attention. This paper provides a conceptual and an empirical examination of the persuasive power of service guarantees. Specifically, the effects of service process evidence, compensation and prior beliefs about the service provider, are examined. The experimental data indicate that the inclusion of service process evidence significantly increases consumers’ willingness to try the provider. The findings also suggest that compensation is more persuasive when service process evidence is specified in the guarantee. The synergy of presenting service process evidence and high compensation, is able to overcome consumers’ prior (negative) exposure. Overall, the study supports the conclusion that consumers are primarily interested in service reliability and only secondarily in compensation for service failures. Managerial implications of the findings are discussed.

Unleashing the Power of Yield Management in the Internet Era: Opportunities and Challenges

The profitability of many firms hinges upon their ability to extract the maximum amount of revenue from a fixed quantity of perishable goods and/or services. Yet most firms in this situation have not invested in yield management systems to address this dilemma. This article explains why minimal use of yield management techniques may have been appropriate in the pre-Internet era. It then explains the major changes to the marketing landscape fostered by the Internet that enable the effective practice of yield management. There are multiple yield management approaches that have potential to increase profitability significantly. The article highlights the most important factors for managers to consider when re-assessing the viability of yield management systems at their firms.

Effects of price advertisements on perceived quality and purchase intentions

Abstract Within a communication framework, Adaptation Level Theory could help explain the cognitive process that consumers use to develop perceived-quality. The theory provided the framework for an advertising experiment that examined the effects of established brand prices in a rival advertisement, new brand prices and source credibility on perceived-quality of the new brand. The participants in the experiment were 120 college juniors and seniors. Results suggest that when the credibility of the source communicating the new brand price was high, established brand prices have an effect on perceived quality of the new brand. Conversely, when the source communicating the new brand price is low, established brand prices have little impact on perceived-quality of the new brand. These results occured even when the price of the new brand had no effect on perceived-quality. Results also suggest an interaction from the new brand price, the established brand price, and source credibility on purchase intentions toward the new brand.

Customer and Non‐Customer Perceptions of Third Party Services: Are They Similar?

Competitive performance analysis typically relies on customer service surveys. This research highlights the importance of systematically including non‐customer input to customer service surveys. Findings indicate that perceptions of customers and non‐customers both on service importance and on firm performance can be significantly different. This research also examines the special requirements needed to apply results of customer service surveys in Latin America. Finally, a method for the simultaneous evaluation of multiple competitors is recommended. Strategies for developing competitive advantage based on the findings are discussed.

Decision to adopt new medical technology: A case study of thrombolytic therapy

New medical technologies are adopted by practising physicians at varying rates. Thrombolytic therapy is an example of a technological advance that many physicians have seemed reluctant to employ. A random sample of board certified internists was surveyed by mail to study factors that influence decisions to use thrombolytic agents. Variables important in predicting use were identified by discriminant analysis. In general users and non-users had similar assumptions about the risks and benefits of this technology. Among the important predictor variables were a perception of having patients suitable for treatment, availability of the agents and self-rating of knowledge about this therapy. Among questions related to type of practice and education, only subspecialization and textbook reading were important discriminators. These results suggest that decisions to adopt new technologies do not follow simply from risk-benefit assessments.

Choosing between discrete marketing policy alternatives under uncertain market response conditions

Models for decisions under uncertainty are reviewed and the use of expected utility is recommended. A general framework for choosing between discrete marketing policy alternatives is developed, allowing for different non-Gaussian probability distributions of market response functions to be assumed. An example of an actual application is presented.