Giles D'Souza

Advertising Agency Compensation: An Agency Theory Explanation

Abstract Advertising agency compensation may change dramatically in coming years as advertisers put pressure on agencies to reduce commissions and tie compensation to performance resulting from advertising campaigns. Drawing on agency theory from the economics discipline, the authors develop and test several hypotheses to address the advertising agency compensation decision. Their study provides the first comprehensive look at the prevalence of outcome-based compensation tied to performance and other compensation systems currently used among U.S. advertisers.

Estimating Differential Lag Effects for Multiple Media across Multiple Stores

Abstract More than 30 years of study have provided ample evidence that advertising in one period can continue to influence sales performance in subsequent periods. However, these carryover, or lagged, effects of advertising have generally been studied (1) only for the total advertising budget or (2) using estimation techniques that implicitly assume that different advertising media have the same lag effect. We develop a model that estimates the influence on sales when different advertising media are allowed to have different lag structures. A methodology is presented and illustrated by an application to weekly data from three stores of a large national retailer. Of the two media studied, radio had longer lagged effects than did billboards. The results were consistent for all three stores. This research yields important insights for theory, as well as for the practice of advertising campaign planning and budget allocation.

A Study of Perceived Innovation Characteristics Across Cultures and Stages of Diffusion

The intense competition for consumer spending and the significant costs, risks, and potential rewards associated with multinational product introductions make it imperative that every aspect of consumer reaction to new products be explored. This study investigates consumer perceptions of innovation characteristics in two different cultures for technology-based consumer durables representing early and late stages of diffusion. Based on survey data from young adults in the United States and South Korea, we find that significant cultural effects exist between consumers from an individualism-centered and a Confucian/collectivism-centered country.

An empirical investigation of the advertising spending decisions of a multiproduct retailer

Abstract In a multiproduct retailing context, an approach for testing marketing mix variables is presented that should be of interest to retailers and researchers alike. Traditional model building for decision evaluation purposes suffers from a serious drawback in that the underlying model is assumed to be known. The present approach incorporates the search for the “true” model as an intrinsic part of the method. Based on up to date modeling perspectives, the approach can be divided into three steps: (1)the use of multiple time series analysis to assist in model specification; (2) the choice of functional form, model estimation and testing; and (3) the use of statistical and simulation methods to test decision making hypotheses. The approach is applied to three years of a western wear retailers weekly sales and advertising data; multiple time series analysis is used to specify a simultaneous equation model that captures demand interdependences. After subjecting the model to several stability tests, it is then used as a basis for testing several interesting hypotheses concerning the retailer s advertising decision making behavior. The key insight for multiproduct retailers is that advertising budget allocation decisions across products and media are probably more important than decisions affecting the level of the total budget since the former have a greater impact on profit contribution.

Characteristics‐based innovation adoption: scale and model validation

Purpose – The aim of this paper is to develop a measurement scale that encompasses a wide array of product characteristics. In addition, a comprehensive model is developed and tested illustrating the relationship among product characteristics and with adoption.Design/methodology/approach – Utilizing 628 respondents, a measurement scale is developed and a structural equation model is tested through a multi‐stage series of surveys. The scope of the research is consumer durable products.Findings – This paper is successful in developing a 43‐item scale that measures 15 unique innovation characteristics. This scale is then used to test a second order model illustrating the relationships innovation characteristics have with each other and ultimately innovation adoption.Research limitations/implications – The major limitation this research suffers from is its lack of variety in products under analysis. For the four consumer durable products studied, the research finds significant results. However, these findings...

A longitudinal examination of internet‐based customer service system usage in small companies

Purpose – New internet technologies are not always readily accepted by target users – especially by small companies. More effective identification of target market characteristics and requirements associated with the adoption and ongoing usage of internet‐based service systems (NCSSs) is therefore needed. Drawing on adoption theory, this research aims to assess pre‐launch survey, legacy and longitudinal data to evaluate factors that encourage small companies to use NCSSs.Design/methodology/approach – The roll out and ongoing usage of a new NCSS are tracked within a single channel of dental offices over a 185‐week period. Logistic and multiple regression analyses are utilized to examine the influences of system attributes, attributes of the target user group, supplier promotional activity and system completeness on ongoing usage.Findings – Pre‐launch survey data is an ineffective predictor of ongoing small company NCSS usage. The best predictors are indicators of organizational readiness and organizational...

‘Birds of a Feather Flock Together’: Strategic Implications for Advertising Agencies

ABSTRACT Advertisers who perceived high similarity between themselves and those within their advertising agency rated their agency as superior to those who felt they had less in common with agency contacts. Outcome measures examined included communication, performance, intention to remain with the agency, and defection following the departure of agency personnel. Differences based on the organizational level of the respondent emerged. Lifestyle factors of similarity were found to play an important role in perceived agency performance, lending support for deeper exploration of client traits and personality prior to the agency9s assignment of personnel to a client account.