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ADVOCACY ADVERTISING: BELIEVE IT OR NOT?

ADVOCACY ADVERTISING: BELIEVE IT OR NOT?. Purpose of Advertising. To communicate a message, idea To influence or persuade Most frequently used for sales of goods and services in hopes of increased sales and profits. What is Advocacy Advertising?.

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ADVOCACY ADVERTISING: BELIEVE IT OR NOT?

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  1. ADVOCACY ADVERTISING: BELIEVE IT OR NOT?

  2. Purpose of Advertising • To communicate a message, idea • To influence or persuade • Most frequently used for sales of goods and services in hopes of increased sales and profits

  3. What is Advocacy Advertising? • Focused on philanthropic activities concerning social issues • Independent from direct purchasing of sponsor’s products or services

  4. Example

  5. Example

  6. Corporate Social Responsibility (CSR) • A Firm’s Charitable acts • Three Reasons for Its Increase • Reagan • Tax Reform • Bush Sr. (Stendardi, 1992)

  7. Why Is This Important? • Positive correlation between social performance and sales/financial performance (Simerly, 1994; Dean, 1998, as quoted by Heinze, Sibary & Sikula, 1999) • Corporate Image is improved (Heinze, et. al. 1999)

  8. What Makes Advocacy Advertising Different? • Long-term relationships • Does not focus on sales and product purchasing, creating greater consumer elaboration • “Schemer-Schemas” (Friestad and Wright, 1994) • Necessity of Consumer Elaboration (Campbell and Kirmani, 2000; Shiv, Edell, & Payne, 1997) • Possibility of doubt or suspicion motives

  9. Advocacy Advertising and Its Relationship with CSR • Promotion of philanthropic activities • Advocacy Advertisements are commercials about a firms CSR • Used to develop impressions of sponsor, creating long-term relationships • The more CSR, the more Advocacy Advertising needed

  10. Why the Doubt? • Goes against traditional business rules • Consumer belief in survival of the fittest (Miller and Ratner, 1998)

  11. Attempts to Decrease Suspicion • Lower Congruence (Menon & Kahn, 2003) • Consumers more comfortable with advertisement • Consumers need consistency

  12. Consumer Trust • Has both cognitive and behavioral aspects • Expectations leading to desired behaviors Advocacy Advertising Consumer Trust Corporate Image = CSR

  13. The Big Question • Does Advocacy Advertising affect consumer trust?

  14. Methods • 92 Sam Houston State University Senior level business students • 47 advocacy, 45 product/service • Schwaiger survey (2004) • 2 trust questions evaluated • 4 social responsibility questions evaluated

  15. Results • ANOVA, Independent sample t-tests • No significant findings at the .05 level for trust • 1 significant finding at the .05 level for social responsibility

  16. Trust t-test Results

  17. Social Responsibility t-test Results

  18. Future Research • Larger sample size • Comparison between different types of companies

  19. QUESTIONS?

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