Valerie A. Taylor

The Effects of Price on Brand Extension Evaluations: The Moderating Role of Extension Similarity

This research explores the effects of price information on brand extension evaluations across different levels of similarity. Brand extension similarity is proposed as a moderator of the effects of price on brand extension perceived quality, perceived value, and purchase intentions. Specifically, price is hypothesized to have a larger positive impact on perceived quality evaluations of dissimilar extensions, but a larger negative impact on perceived value and purchase intentions for similar extensions. Results indicate that a high-price introductory strategy used to suggest a high-quality product will likely be more effective for dissimilar extensions than similar extensions. The results of this research suggest a number of implications for new product pricing. Directions for subsequent research are offered as well.

Advertising Signaling Effects for New Brands: The Moderating Role of Perceived Brand Differences

This research considers whether new, unknown brands may be able to signal high quality to consumers via an advertising spending signal. Signaling theory suggests that heavy advertising spending for an unknown brand may be ineffective in signaling quality because the brand has no reputation at stake. More recent theorizing, however, holds that advertising spending may itself serve as a bond and, therefore, influence quality judgments even for unknown brands. The results of a laboratory experiment are consistent with the latter position as we observe strong signaling effects on perceived quality for a new, unknown brand. Interestingly, though, this effect is moderated by subjects’ prior perceptions of brand differentiation, such that a negative effect of very high ad spending occurs when differences between brands in a product category are perceived as small. The results suggest that new brands, as well as established reputable brands, may be able to successfully signal quality by strong spending on advertising. However, the results also indicate the potential for a backlash effect of high ad spending on new brand evaluations when the brand competes in a category where competitive offerings are perceived by consumers to be relatively undifferentiated.

Toward Reducing Youth Exposure to Tobacco Messages: Examining the Breadth of Brand and Nonbrand Communications

Young people cannot escape prosmoking messages in todays society. From magazine advertisements to billboards to promotional products to storefronts, the pervasive landscape of tobacco-related communications is unavoidable. Despite increased restrictions on tobacco advertising and promotion in recent decades, including the 1998 Master Settlement Agreement(MSA), tobacco companies continue to employ an extensive array of marketing communications practices that can reach youth. Moreover, minors encounter tobacco messages not only from branded sources(those paid for by the tobacco firms), but also through nonbranded sources, such as smoking portrayals on television and in films and prosmoking websites.In this article, we critically examine the myriad and far-reaching tobacco messages that young people face. Although tobacco company marketing that can reach minors has undergone much research and public scrutiny, the combined impact of those messages along with nonbrand messages that positively portray smoking has received much less attention. Since all messages communicate, not just branded ones, it is important to examine the breadth of tobacco communications to which young people are exposed. We close by offering recommendations both for reducing youth exposure to protobacco communications and enhancing anti–youth-smoking efforts.

Increasing intention to comply with pharmaceutical product instructions: an exploratory study investigating the roles of frame and plain language.

Patient noncompliance with doctors’ orders and drug instructions is a serious problem, increasingly recognized as such in the medical and public policy fields (Kickbusch & Ratzan, 2001). Noncompliance occurs when patients do not follow medical-related instructions in full, and results in large physical and financial costs (cf. Drug Topics, 1995; Frederick, 1997; Jolly & Sanford, 1995; Kickbusch & Ratzan, 2001; Marwick, 1997; Weiss, Blanchard, & McGee, 1994). Several studies suggest that inadequate health literacy skills lead to low patient understanding of information and that this consequently may lead to low compliance rates (cf. Boyle, 1970; Bresolin, 1999; Cole, 1979; Peck & King, 1982; Ratzan, 2001; Spandorfer, Karras, Hughes, & Caputo, 1995; Williams, Parker, & Baker, 1995). Health literacy has been defined as the ability to read and comprehend health and medically related materials (cf. Bresolin, 1999). While approximately 40 million Americans are functionally illiterate and another 50 million have marginal literacy (Kirsch, Jungeblut, Jenkins, & Kolstad, 1993), the AMA suggests that levels of health literacy may be lower than general literacy levels because health literacy is context dependent (Bresolin, 1999). Given the suspected widespread inability to understand drug instructions, the format and content of drug instructions have been considered as contributors to noncompliance (cf. Morrell, Park, & Poon, 1989). In particular, both the clarity of the instructions communicating how to properly consume the drug as well as the warnings associated with its consumption have been isolated as factors that impact compliance rates (FDA,

An Examination of Strategic Practices in Online Retailing

ABSTRACT Online sales growth has far outpaced that of traditional retail channels and increasing competition heightens the importance of effective online practices. This empirical research first considers website design-based strategies in three strategic areas–convenience, experiential/relationship, and trust–that may enhance the marketing effectiveness of online retailers by helping to satisfy online customer needs and wants. Next, focusing on the three strategic areas, a comprehensive content analysis of site design elements in 285 retail sites supporting online transactions is described. Analysis of variance is used to examine how online site strategies differ depending on online retailer size (small, medium, and large), type (pure play and brick-and-click), and across 12 different retail categories, while also controlling for length of online experience. Results indicate significant strategy differences in the usage of convenience/efficiency and experiential/relationship strategies by size, a significant size by form interaction, and differences in all three strategy areas across retail categories. These results are presented and five key takeaways of the research are discussed.