Rajesh V. Manchanda

Does It Pay to Shock? Reactions to Shocking and Nonshocking Advertising Content among University Students

Although the use of shocking content in advertising appeals has been widely adopted, the effectiveness of such communication strategies has not been empirically investigated. In two laboratory studies, conducted in the context of HIV/AIDS prevention, we examine the effectiveness of shock advertising in comparison to the commonly used appeals of fear and information. Our findings suggest that shocking content in an advertisement significantly increases attention, benefits memory, and positively influences behavior among a group of university students.

The effect of cognitive busyness on consumers’ perception of product value

In this paper, an interesting paradox is demonstrated – when consumers pay a great deal of attention to product and price information in an advertisement, they are likely to find themselves lacking the cognitive resources required to use that information in making a discerning assessment of the value of the product offering. Using three studies, it is shown that paying close attention to product‐ and price‐related information details causes cognitive busyness, which can cause consumers to engage in a greater degree of heuristic processing than those who are cognitively less busy. It is demonstrated that, when consumers are cognitively busy, they are less likely to accurately assess the value of price discount offers. Such cognitively busy consumers generally disregard the magnitude of the discount and the actual savings offered in forming their assessments of value for the offer. Non‐busy consumers, on the other hand, perceive differences in value as magnitude of discounts, price, or quality of product features being altered. Implications for managers and consumers are discussed.

The “Holding-Out” Effect How Regulatory Focus Influences Preference Formation for Sequentially Presented Choice Alternatives

This research examines the influence of regulatory focus on preference formation for sequentially presented choice alternatives. Across three experiments, we demonstrate the “holding-out” effect exhibited by prevention-focused individuals who tend to undervalue earlier options in a sequence, examine more options, and select an option encountered later in a sequence compared to promotion-focused individuals. We suggest and provide initial evidence that the mechanism underlying the holding-out effect is an inability to externally generate a comparison point in the beginning of a sequence, which negatively affects evaluations made by prevention-focused individuals.

Using previous social marketing efforts to assess a new program: The case of shelterbelts

Purpose This paper aims to report a research approach that explores how to use evaluations of previous social marketing efforts to assess and guide a new shelterbelt program called Working Tree. By targeting farmers, this new program aims to gain benefits from enhancing and expanding on-farm tree shelterbelts on the Canadian prairies. Design/methodology/approach This paper uses a novel method that relies on secondary data from six completed social marketing cases as data for a comparative analysis with the new program. A conceptual framework is proposed and applied. This framework incorporates process and outcome indicators of evaluation, key dimensions of the rational choice theory and proven practices from experience. Findings Analysis suggests key parameters of the Working Tree program to be appropriate, with some modifications. However, limitations in the data also point to avenues for future research to deepen the authors’ understanding of assessing a new social marketing program in the prelaunch phase. More research is needed on what works, where and why. Research limitations/implications The seven indices are a modest set for comparatives and are not exhaustive. Six selected cases are small samples that are unable to fully reflect the environmental nature of the new program; yet, they contained critical data for the comparative analysis. Financial data are not in constant dollars, which would be needed when further analysis is undertaken. Practical implications This paper illustrates the importance of the evaluation stage of the social marketing process. It demonstrates the practicality of being able to effectively draw upon previous evaluations to inform new program investors and social marketers at the prelaunch stage. Originality/value The conceptual framework and method present a novel approach to use evaluation data to guide new program funding and initiatives. It is offered with the hope that others might draw upon the ideas presented here and advance them.

The Effects of Brand Name on Consumers’ Evaluations of Price Presentation Formats

Though marketing practitioners have begun to acknowledge the utility and effectiveness of a fixed price policy (i.e., prices that are never discounted or reduced), there is limited research and agreement on this issue by marketing theorists. The extant academic literature presents conflicting viewpoints about the effectiveness of fixed price offers with some researchers indicating support for such a strategy and others doubting their success (e.g., see Monroe and Mazumdar, 1988; Nagle and Holden, 1994). Research that has directly compared the effects of a price discount with a fixed price on consumers’ perceptions have found that consumers’ may evaluate fixed price formats more favorably but only if certain conditions are met. For example, one such condition, motivation to purchase, can explain when fixed price formats may be preferred to price discounts (Suri, Manchanda, and Madan 1999). In this paper, we contend that the strength of the brand, a factor that has previously not been considered in this line of research, could influence consumers’ evaluations of these two types of price presentation formats.

Asian American Consumers and their Price Sensitivity

The United Way (1992) predicts that the population of minorities in the United States is expected to increase so that by the Year 2000 one in three Americans will belong to a minority. Of these minorities, Asian Americans are the fastest growing minority group (Gardner, Robey and Smith 1989) which is argued to become the third largest ethnic minority in the US.(United Way 1992). Despite this important subculture emerging in the U.S. market little evidence appears in past literature on studies of Asian American consumers. The overall purpose of this study is to add to our understanding of Asian American consumers by exploring their sensitivity towards one key aspect in marketing: price.