Pedro Hidalgo

Comparative advertising effectiveness in Latin America: evidence from Chile

Purpose – The purpose of this study is to test the viability of comparative advertising in Chile.Design/methodology/approach – Data were collected via controlled experimentation. The study employed a 3 (comparative advertising intensity: noncomparative, indirect comparative, and direct comparative)×2 (product category involvement: low, high)×2 (sponsor brands relative market share: market leader, other brand) between‐subjects factorial design.Findings – The results suggest that direct and indirect comparative advertisements are not more effective than noncomparative advertisements in Chile. Additionally, data do not support the idea that the effect of comparative advertising intensity is moderated by the product category involvement and/or by the sponsor brands relative market share. Since comparative advertising was not shown to be more effective than noncomparative advertising, the authors hypothesize that it is due to cultural biases and the novelty of comparative advertising in Latin America, as exp...

The A, B, Cs of advertising management: perceptions and practices of managers in Chile, Japan & the United States

This study attempts to shed light on selected aspects of advertising management in three countries—Chile, Japan, and the United States—as perceived by practitioners. Prior research indicated a dearth of comparative work on this subject. Specific topics addressed include approving advertising, planning media, measuring effectiveness, and budgeting. The criteria used to evaluate each of the four topics revealed significant differences in advertising management thought even though, directionally, findings were frequently similar. While the principles of advertising management may be universal, cultural, organisational, and quantitative (versus qualitative) emphasis were deemed to be factors accounting for differences in the practice among the three countries.

Use of Facebook and the Formation and Maintenance of Social Capital: Evidence from Latin America

Social capital plays an important role in generating word of mouth, in C2C interactions within brand communities, as well as within brand service channels that provide after-sales support via peer-to-peer problem solving communities. Ellison et al. (2007) suggest that intense Facebook use is closely related to the formation and maintenance of social capital. Ellison et al. (2007) only examined Facebook users at one university in the U.S., and there may be differences across cultures that they were not able to capture. This article seeks to examine the effectiveness of Facebook use on the formation and maintenance of social capital in Latin America. The results suggest that Facebook intensity is less effective in the formation and maintenance of social capital for Latin American students than U.S. students.

Developing campaigns in the context of a disaster

Purpose – The purpose of this paper are to determine: how disasters are used as a theme in advertising; how the public evaluates different ways of using disasters in advertising; what dimensions directly affect these evaluations; and what aspects should be taken into account by an organization that wants or need to develop a campaign after a disaster. Design/methodology/approach – This paper presents two studies examining the relationship between catastrophes and advertising in the context of the February 2010 earthquake in Chile. The first study scrutinizes the characteristics of print ads that used this event as their main theme. The second study evaluates the reactions of consumers to different types of post-catastrophe ads. This issue was explored in a survey on the attitudes toward and credibility of these ads and in a qualitative examination, which explored the reasons for the interviewees’ evaluation. Findings – The first study identified nine types of advertisements as the most used by advertisers...

Endowment effect in Latin America: empirical evidence and implications

Authors from several disciplines—decision sciences, management, marketing, behavioral economics—have documented the existence of anomalies to the standard rational model of human behavior. Among several anomalies, the endowment effect has found substantive support in previous research. Few studies have explored the endowment effect in developing countries. This study reports the results of an experiment conducted in Chile to empirically analyze the endowment effect in an experimental setting. The results support the hypothesis that endowment effects are also applicable to Chilean and Latin American consumers, adding to the growing evidence in favor of quasi-rational models of consumer behavior. Implications for marketing, management and policy-making practices are briefly presented.

Analysis of the AFP Industry Using Customer Lifetime Value

Understanding the long-term price matching effects on consumers is important to evaluate the effectiveness of these policies in stimulating customer retention. In industries with low product differentiation and low consumer involvement (e.g., AFP Industry), it can be seen that choosing a product is based on habitual purchasing behavior (inertia). The objective of this article is to analyze the competitor convenience of improving customer retention by matching the lowest price in the AFP Industry. Results suggest that matching the industry’s price leader reduces the company’s CLV, diminishing competitor incentives to make this marketing effort.

Developing campaigns in the context of a disaster: Content of and reactions to advertising following the earthquake in Chile on February 27, 2010

Purpose – The purpose of this paper are to determine: how disasters are used as a theme in advertising; how the public evaluates different ways of using disasters in advertising; what dimensions directly affect these evaluations; and what aspects should be taken into account by an organization that wants or need to develop a campaign after a disaster. Design/methodology/approach – This paper presents two studies examining the relationship between catastrophes and advertising in the context of the February 2010 earthquake in Chile. The first study scrutinizes the characteristics of print ads that used this event as their main theme. The second study evaluates the reactions of consumers to different types of post-catastrophe ads. This issue was explored in a survey on the attitudes toward and credibility of these ads and in a qualitative examination, which explored the reasons for the interviewees’ evaluation. Findings – The first study identified nine types of advertisements as the most used by advertisers...

Endowment Effect in Latin America: An Experiment

Authors from several disciplines - decision sciences, management, marketing, behavioral economics - have documented the existence of anomalies to the standard rational model of human behavior. Among several anomalies, the endowment effect is a key finding of this previous research. Few studies have explored the endowment effect in developing countries. This study reports the results of an experiment conducted in Chile to empirically analyze the endowment effect. Findings are consistent with previous international evidence suggesting the ownership itself produces value to consumers (and decision makers). Implications for marketing, management, business education and policy making practices are briefly presented.

Marketing communications: examining the work of practitioners in the United States, Japan and Chile

This comparative paper supplements two previous ones, all focusing on comparisons of the manner in which corporate practitioners in the US, Japan and Chile manage marketing communications. In this study, respondents share insights on the time and attention they devoted to selected marketing communication activities and the extent to which various communication alternatives are considered when a campaign is being planned. Differences in management activities and alternatives considered are identified within and between countries. For example, integrated marketing communications were not nearly so important to practitioners in Japan and Chile as in the US. Personal selling was a function that received significantly more attention in Japan than in Chile or the US. While a good deal of similarity existed between practitioners in the three countries, a number of differences were found and explanations for these differences are advanced.