The effect of perceived advertising costs on brand perceptions

Article Abstract:

How, why, and when consumers use their perceptions of advertising costs as cues to a new brand's quality-related attributes is examined. It is proposed that consumers perceive advertising costs as deviations from expectations about typical costs in the product category. Perceived costs are hypothesized to affect brand perceptions in an inverted-U fashion, with extremely high costs leading to negative perceptions. The level of involvement and informativeness of ad content moderate this relationship. An experiment in which subjects are exposed to an ad for a new product provides evidence for the proposed model. (Reprinted by permission of the publisher.)

Finance, Advertising, Brand choice, Consumer behavior

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Persuasion knowledge: lay people's and researchers' beliefs about the psychology of advertising

Article Abstract:

What do lay people believe about the psychology of advertising and persuasion? How similar are the beliefs of lay people to those of consumer researchers? In this study we explore the content of peoples' conceptions of how television advertising influences its audience. The findings suggest that lay people and researchers share many basic beliefs about the psychology of persuasion but also indicate some dissimilarities in these groups' persuasion knowledge. We discuss what the findings imply about the existence of cultural folk knowledge and its effect on persuasion. (Reprinted by permission of the publisher.)

Psychological aspects, Television advertising, Television viewers, Persuasion (Psychology)

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