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The Waste in Advertising Is the Part That Works

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Abstract

This study shows that waste the perceived extravagance of an advertisement contributes to advertising effectiveness by increasing credibility. It draws especially on the Handicap Principle in biology: animals use wasteful characteristics to signal their exceptional biological fitness. It hypothesizes that excesses in advertising work in a similar way by signaling brand fitness. TV advertisements were evaluated online for perceived advertising expense, message, brand familiarity, quality, reliability, and likelihood of choosing. High perceived advertising expense enhances an advertisement s persuasiveness significantly, but largely indirectly, by strengthening perceptions of brand quality.
... As the brand behavior at the center of our research is expressing gratitude, this research also contributes to the less commonly studied but prevalent practice of brand-expressed gratitude Folse 2009, 2011). Further, by examining variations in gratitude expression strategies based on effort and identification with the gratitude target, our research contributes to existing work on the effort heuristic (Grewal and Stephen 2019; Kruger et al. 2004), perceptions of effort in advertising (Ambler and Hollier 2004;Chang 2011;Liljedal, Berg, and Dahlén 2020;Modig, Dahlén, and Colliander 2014), and identification (Turner et al. 1987). In doing so, we contribute to existing theory and provide detailed managerial recommendations for sincere brands wishing to express gratitude. ...
... For example, store design and sales agents' assistance can signal effort (Morales 2005). In the context of advertising, cause marketing campaigns (Ellen, Mohr, and Webb 2000;Langan and Kumar 2019), perceived advertising expense (Ambler and Hollier 2004), advertising creativity (Modig, Dahlén, and Colliander 2014), and nonstereotyped gender role portrayals (Liljedal, Berg, and Dahlén 2020) also serve as cues that the brand has behaved in an effortful manner. ...
... Likewise, in studying retailer effort, Morales (2005) finds that consumers react positively to extra effort, reporting higher willingness to pay and increased visitation intentions. Additional evidence shows that consumers respond more positively to effortful advertising campaigns on a variety of brand constructs such as interest, attitudes, quality, and word-of-mouth intentions (Ambler and Hollier 2004;Ellen, Mohr, and Webb 2000;Langan and Kumar 2019;Liljedal, Berg, and Dahlén 2020;Modig, Dahlén, and Colliander 2014). ...
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This research investigates the use of advertised gratitude expressions by sincere brands. As sincere brands are well aligned with gratitude expressions, we theorize that a messaging strategy solely expressing gratitude fails to yield brand benefits beyond a message where gratitude is not expressed. However, sincere brands can reap more brand benefits when their advertised gratitude expression is perceived as effortful (e.g., thank you message coupled with a free product). We demonstrate that when sincere brands engage in these high-effort expressions of gratitude, consumers evaluate the brand more positively, an effect mediated by brand trust. We also explore when sincere brands may benefit from low-effort gratitude expressions. Specifically, we find that consumer reactions to low-effort acknowledgments are more favorable when consumers identify with the gratitude target. Based on these findings, we detail our contributions to theory and provide managerial implications for sincere brands wishing to express gratitude.
... For example, sophisticated production techniques signal to consumers that the associated advertising is expensive. This leads consumers to surmise that the company in question is more confident in the products it promotes (as the company would not devote so many resources otherwise) and that the company's products are therefore of higher quality (Ambler and Hollier 2004). Believing in the high quality of brands and products that they partner with, influencers signal an unobservable quality to followers. ...
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