David R. Fortin

Interactivity and vividness effects on social presence and involvement with a web-based advertisement

Abstract This article measures the effects of various levels of interactivity and vividness of a message on attitudes and behavioral intentions within a web-based advertisement. As a conceptual foundation, the study introduces the multistep model of the impact of interactivity on advertising effectiveness. The model is termed multistep because of the hierarchy of direct and indirect effects. A 3×3 interactivity by vividness between-subjects factorial design tests the model. A total of 360 responses were collected through an online web interface. Data were analyzed by means of individual analysis of covariance (ANCOVA) procedures. The multistep model was also tested with path analysis to verify the significance of the interrelationships between constructs in a simultaneous equations procedure. Results indicate moderate effects of interactivity and vividness on social presence and, indirectly, involvement that in turn have strong effects on traditional advertising effectiveness measures. The findings suggest that the effects of interactivity reach a “plateau” at medium and high levels, indicating a diminishing returns effect. Conversely, the impact of vividness appears to be linear with a steady increase across low, medium, and high levels. No interaction effect was found between the two treatments. The study also provides some insights on using the web as a gateway for experimental research and data collection.

Effects of Configuration and Exposure Levels on Responses to Web Advertisements

ABSTRACT The debate about which media metric efficiently measures the effectiveness of a web-based advertisement, such as banners, is still alive and well. Nonetheless, the most widely used measure of effectiveness for banner advertisements is still the click-through rate. The purpose of this article is to review the measures currently used to measure effectiveness in web advertising and to empirically determine the factors that might contribute to observed variations in click-through rates based on an actual sample of advertising campaigns. The study examined the complete set of all advertising insertions of 77 customers of a large advertising agency over a one-year period. A resulting sample of 1,258 placements was used to study the effect of banner formats and exposure levels on click-through rates using analysis of variance. Results suggest that the strongest effect on click-through rates comes from the use of trick banners (?2 - 0.25) and that other factors such as size of the advertisement, motion, use of ‘click here,’ and ‘online only’ type of announcers all have a significant impact of click-through rates. Implications of these findings as well as limitations of the current study are discussed and directions for future research agendas proposed.

Clipping coupons in cyberspace: A proposed model of behavior for deal-prone consumers

The use of cents-off coupons by consumers is a widespread phenomenon and is well documented in the marketing literature. Recently, coupons have become available in electronic form on the World Wide Web. This article introduces an adaptation of the theory of planned behavior applied to coupon usage that encapsulates both traditional and electronic environments. A careful review of the couponing literature is presented, along with a proposed theoretical framework. A methodology for empirical verification is suggested and managerial implications are discussed, along with avenues for further research.

Consumer acceptance of genetically modified foods in New Zealand

The introduction of genetically modified foods (GMF) in consumer markets worldwide is currently a hot topic for debate. Media hype and the strong position against GMF by activist groups have contributed to the negative image of GMF, often labelled as “Frankenstein” foods. Given this negative image, the purpose of this study is to find out if consumers display more positive perceptions about GMF if positive trade‐offs are made more salient in the purchase decision process. This study examined the impact of additional product benefits on consumer attitudes towards GMF. A sample of 120 consumers was randomly assigned to a (2*2) factorial design manipulating two levels of genetic modification and two levels of additional product benefits. Results indicate that genetic modification in food products has a negative impact on attitudes. More importantly, the presence of additional product benefits resulting from GMF was not enough to offset this negative view. Reasons for such results are discussed, conclusions for the industry and regulatory bodies drawn and implications for future research given.

Emerging issues in electronic marketing: thinking outside the square

1. IntroductionIn the technology-driven world of today, buzzwordsnever seem to go out of style. They act as safety valvesand help us deal with the ongoing dynamics of change.Once a phenomenon has reached the status of buzzword, wecan somehow encapsulate it, internalize its novelty, and thenmove on to the next one. Before the new millennium finallyarrived, probably no innovation other than the Web hadfueled so many buzzwords in such a short period of time.From killer-apps to dotcoms, and Y2K bugs to cyberspace,the steady introduction of these into our vernacular simplyreflect the pace at which business in the electronic world isevolving and, in the process, disrupting traditional businessmodels (D’Aveni, 1994).The Internet is clearly more than a fad. As penetrationratesincrease,wecancertainlyenvisage‘‘accesstoInternet’’becoming as ubiquitous as access to the telephone andtelevision — at least in the developed nations. But as weget there, future development of the web as an e-commerceplatform will increasingly depend on understanding theprocess by which people will use this new communicationtechnology. But is the Internet really different? Coupey(1999) raises questions as to whether the key differencesbetween traditional and interactive media are limited tosubstantive issues of the medium itself or simply reflecttechnologicalchangesthatcanbeexploitedtopushthelimitsof extant theories. In short, some would argue that the newelectronic environment is really just a different context forexisting theories, while others claim that the new envir-onment requires a new set of theories adapted to the realitiesof a radically transformed marketplace (Dholakia et al.,1999b; Peterson et al., 1997). This is a fascinating researchquestion that is unlikely to be answered anytime soon.The evolution of the Internet parallels the evolution ofother communication technologies, such as radio, broadcasttelevision, cable TV, and cellular phones. The initial meansto access the new service usually come with a hefty price tagattached. Eventually the hardware and the service becomevery low priced and may even become totally free. Recently,we have seen computers and even full Internet accessoffered for free in exchange for advertising exposure. Thisis exactly the same model that we observed in broadcastmedia and are presently observing in cellular telephony.In other respects, the Internet is different from othercommunication technologies. The interactive nature of thisnewmediumtransferspowerbacktoconsumersandchangesthe foundations of business, affecting especially thoseaspects of doing business that are based on market ineffi-ciencies (Dholakia and Dholakia, 1999). The online revivalof market techniques of antiquity and medieval times —such as the auction and the swap (www.ebay.com) — seemsto confirm the return to a more balanced power relationshipbetween buyers and sellers. Part of the success of bookretailer Amazon.com, although the firm has yet to show aprofit, is the ability for a community of book readers toexchange information among themselves. Through a ratingof the raters, Amazon.com and other community-orientedsites nudge their members towards the expression of honestand unbiased opinions (see, for example, www.epinions.com). Online banking is making significant inroads mainlydue to the convenience factor and greater control over theprocessing of very routine transactions. Some traditionalmedia find ways to merge new technologies with the old tobetter serve their customers while keeping their mainstreambusiness alive. Some newspapers keep their paper versionwithout going online but do create web interfaces for accept-ing classified ads submitted by consumers (www.buy-sell-exchange.co.nz). Bitner et al. (2000) discuss the positiveeffects of infusing various doses of technology in serviceencounters and suggest that self-service technologies (suchas the Web) actually empower consumers to do repeatedtransactions on a more frequent basis, which may ultimatelylead to enhanced satisfaction levels.Rayport and Sviokla (1994) suggest that the new busi-ness environment is more aptly defined as a marketspace(rather than the conventional marketplace), where products

The first decade: emerging issues of the twenty‐first century in consumer marketing

Purpose – As one rewinds the clock to the early days of the twenty‐first century, it can be quite surprising to realise how much the consumer landscape has changed from what it is today. This paper aims to introduce the special issue and attempts to take stock of the last decade and reflect on the transformation of key areas of the changing marketplace and its impact on consumption.Design/methodology/approach – A critical and integrative appraisal of emerging issues in consumer marketing is used to develop a framework for reviewing the relationship between demand‐side and supply‐side trends in the consumer landscape.Findings – In reviewing major developments and trends of the last decade, the paper argues that the consumption landscape now operates in a rapidly changing environment that can be characterised as both turbulent and disruptive. These major shifts are emerging from the physical environment, technological innovation and the transformation of major markets. In all these scenarios, significant ev...

The effects of interactivity and product information on consumers' emotional responses to an online retail setting

This study examined how two aspects of an online shopping environment can influence the emotional states of consumers, and how these emotions subsequently affect their intentions to purchase products online. A web-based experiment (using a 3 × 3 between-subjects factorial design) was conducted, where respondents were exposed to a simulated online retail store. A total of 360 responses were collected from web users. The two independent variables examined were level of interactivity and amount of information. Emotion was measured using the two emotional states of pleasure and arousal. Results suggest that a linear relationship exists between the level of interactivity provided by an online store and pleasure. Moreover, pleasure (and in some cases arousal) was found to be a significant predictor of the likelihood that a consumer would purchase products online.

Using a Product/Service Evaluation Frame: An Experiment on the Economic Equivalence of Product versus Service Alternatives for Message Retrieval Systems

Abstract Product/service alternatives represent a newly emerging competitive environment where, as a result of advancements in technolog y, competition between products and services capable of yielding the same functional benefits has increased. The purpose of this research effort is to determine whether the evaluation measures of perceived quality, perceived value, and willingness to buy vary when the options under investigation represent the cross-category comparison of a product and a service. In addition, the impact of temporal price frames, defined as economically equivalent means of stating price information, on product/service evaluations is investigated. One hundred twenty subjects were randomly assigned to a 3 × 2 between-subjects factorial design in which two temporal price frames and three product/service combinations were evaluated for their impact on product/service evaluations. Results indicate that consumers provide different evaluations for economically equivalent product/service temporal price frames.

On the predispositions toward information technology: a three-way cross-cultural study

Abstract Governments in most countries have realized the critical importance of telecommunications for economic progress and are opening up to foreign investment in this sector. In order to achieve significant market share, U.S. firms need to understand attitudinal and lifestyle factors impacting information technology purchase and usage patterns across different cultures. This includes understanding the current infrastructure and economic conditions, but also familiarity and attitudes. A study was conducted to explore attitudes towards, and familiarity with, new information technologies in the United States, Germany and Croatia. Findings indicate that Americans are more familiar with technology than Germans and Croats, and tend to use information technology more. Respondents from all countries showed a predominantly positive attitude towards technology. Germans and Croats were particularly aware of environmental problems and, in general, the price society pays for technology, while Americans and Croats showed concern for the loss of essential human qualities. These and other findings from the study not only highlight the differences in these three markets, they also provide useful insights for strategists in information technology firms and public policy makers grappling with the complex issues arising from the rapid proliferation of new information technologies in an ever-shrinking world.

The effects of contextual cues on online auction outcomes: a quasi-experimental approach

The purpose of this paper is to propose a conceptual model of the determinants of online auction interest and final selling price. Using an innovative quasi-experimental methodology, data was gathered by observing 431 real online auction site transactions, over the four product categories DVD movies, Books, Laptops and Cars, reflecting high versus low personal involvement categories. Key findings suggest that seller reputation is important for high-involvement goods and impacts on the final selling price, as does the starting price for low-involvement goods. In addition, there appears to be a direct correlation between the number of bids and the level of interest in the auction for all the product categories examined in this study. These findings provide some empirical evidence about the influence of selected auction characteristics on the auctions final outcome, using real-world transactions on a large online auction site. Finally, the study examines the contrasts between traditional in-person auction theory and the rapidly growing online auction market. Managerial implications and directions for future research are also presented.