Can Advertising Copy Make FSI Coupons More Effective

FRANCELECLERCand JOHN D C LITTLE* Packaged goods manufacturers distribute cents-off coupons in freestanding inserts (FSIs) in newspapers Free-standing insert coupons are typically composed of two parts: the coupon per se and a print advertisement Using two laboratory experiments and a separate analysis of coupon measurements from scanner panels, the authors investigate whether the content of the print advertisement influences the effectiveness of the coupon Theoretical arguments suggest that the impact on consumer attitudes will depend on the executional cues of the copy, the brand loyalty of the consumers, and the consumer's involvement with the product category The results support the theoretical framework and suggest that it is possible to make FSI coupons more effective by choosing appropriate executional cues for their advertising copy Advertising Copy Can More Make FSI Coupons Effective? Consumer packaged goods manufacturersdistributehundredsof billions of cents-off couponseach year.Among consumer-orientedpromotions, coupons represent the largest dollar amount of manufacturerspending, totaling over $6.5 billion in the United States in 1995 Approximately80% of these were delivered through free-standinginserts (FSIs), leaflets of coupons insertedin Sundaynewspapers Most marketersthinkof coupons as devices to offer price discounts, and certainly they are However, a coupon in an FSI appearswithin an advertisement.Can this advertisement be used as an opportunityto build a strongbrandimage, enhance brand attitude, and affect purchasebehavior as suggested by Larson (1991) and Schultz, Tannenbaum,and Lauterbom (1993) in their discussions of "IntegratedMarketing Communications?"Some marketersseem to believe so, because in recent years coupon advertisinghas changed markedly.Formerly,FSI advertisementswere predominantly simple displays of the product.Now, however,the advertisements often have sophisticatedexecutions, as might be found in magazines Whateverthe reason, many FSI advertisements today featureexecutionalcues thatactively seek to persuadeby providingbrandinformationor peripheralcues, such as pleasantpicturesthat lack productinformation.Others retain the original style of simple productpresentation The diversityof approachesraises the question, Do the more elaborateexecutions offer an additionalbenefit? An even more interestingquestion is whetherexecutional cues differentiallyaffectvarioustypes of consumers.The goal of a coupon promotionis typically to generate incremental sales (i.e., sales that would not have otherwise occurred) With this goal in mind, marketerstargetthe following segments: (1) customers loyal to competitors'brands and (2) switchers.Understandingbetterhow these groupsprocessadvertisementsin FSIs holds the promiseof helping marketers design more effective copy For example, if for switchers, brandinformationin an advertisementis more effective than a pleasantpicture,and if for brand-loyalcustomers,brandinformationis not effective, then featuringsuch informationin an FSI would generatesales from the brandswitchersbut not from the customersloyal to the competitor'sbrands.By featuringan appropriateexecutionalcue in an FSI advertisement, marketerscould maketheircouponpromotionmoreeffective Such issues are addressed here We first develop a conceptual frameworkfor analyzing the impact of executional cues on brandattitudeas a function of loyalty Then we design and execute two laboratoryexperimentsto test the underlying hypotheses and implied relationships.The framework also predicts that executional cues will have different effects on loyal customers and switchers dependingon their involvement in the product category These relationships should be detectable in scanner data Accordingly, we test hypotheses derived from our frameworkon a database of commercial measurementsof coupon effectiveness *France Leclerc is an assistant professor,GraduateSchool of Business, Universityof Chicago John D C Little is InstituteProfessor,Sloan School of Management,MassachusettsInstituteof Technology.The authorsthank Steve Hoch, Dennis Regan, and Jay Russo for theircomments on a draftof this article They also thank InformationResources Inc for providingdata from its CouponScan service and Ocean Spray Cranberriesfor research supportand valuable comments 473 Journal of MarketingResearch Vol XXXIV(November 1997), 473-484 This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 474 JOURNAL OF MARKETINGRESEARCH, NOVEMBER 1997 REVIEW LITERATURE Little researchhas focused on the differentialeffect of executionalcues on brandattitudesas a function of brandloyalty Among the exceptions, Cushing and Douglas-Tate (1985) explore how the "people/productrelationship"relates to advertisingprocessing Using a set of 35 items to measure various dimensions of buying style (such as consumer involvementin the productcategory,commitmentto the brand, variety seeking, information seeking, attribute consideration,and price interest), the authors identify four clusters of customers These four groups were defined by combining two levels of category involvement(high versus low) and two levels of brandcommitment(high versus low) Analysis revealed that neitherof the groups with low category involvementhad much interestin processing brandinformation The group with low category involvement and low brandcommitmentmade purchasedecisions primarily on the basis of price The group with low involvementand high commitment based their purchase decisions more on routinizedbehaviorthan anythingelse The two groups with relatively high category involvement, however,differed in their interestin processing information The group highly committed to the brandreported little use of brandinformation,because there was "no need to be looking for anything better than what they have." Membersof the second group,however,appearedwilling to change their brands if they found something better and to seek out informationto make their decisions by paying attention to advertisingand even by experimentingwith new brands Because only the two groups with high levels of category involvement were differentiated,only these groups were subsequentlytested for their reactionsto advertisementsby Cushing and Douglas-Tate.After seeing broadcastcommercials for nonfavorite brands, subjects indicated their responses by using a batteryof 61 items The results suggest that, for consumers with low brandcommitment,advertisements ratedhigh in cognitive interestalways lead to higher brandpurchaseattitude.However,for consumers with high brand commitment, both cognitive interest and emotional response seem to relate to brandpurchaseattitude In anotherattemptto assess the effect of advertisingas a function of brandloyalty, Raj (1982) uses a split-cable test to show half of his subjects an advertisementthat he categorized as a "mood"commercial He found that this commercial only affected the purchase behavior of loyal customers Loyal customers of the advertisedbrand increased their consumption of the advertised brand, whereas loyal customers of a competitive branddecreasedtheir consumption of their brand.There was no impact of advertisingon brandswitchers These two studies suggest that executional cues, such as brand information (generating cognitive interest) and "mood"commercials (generatingemotional response), can affect brandattitudedifferently,dependingon the degree of loyalty to a brandin the productcategorybeing advertised Consumerswith a high level of loyalty are more affected by tAs illustratedin these two studies, brandloyalty has been conceptualized as both an attitudinaland a behavioralphenomenon,which is consistent with the definition of brandloyalty proposedby Jacoby and Chestnut (1978) emotional cues, and consumers with a low level of loyalty are more affected by information-orientedcues Furthermore, the results of the first study suggest that this differential effect may be present only when there is sufficient involvement in the productcategory CONCEPTUALFRAMEWORK Motivationand Persuasion Theorists have recognized that a person's motivation to process argumentsmoderatespersuasion(for a review, see Eagly and Chaiken 1993; also Petty and Cacioppo 1986) Specifically, it has been shown repeatedly that motivated subjects process information from persuasive messages more extensively and systematically than unmotivatedsubjects and consequently are more influenced by relevantarguments than by peripheralcues Correspondingly,unmotivatedsubjectsprocess informationless thoroughlyand more heuristically.For them, peripheralcues not directly relevant often have more impact than arguments.Thus, motivated subjects exert cognitive effort to evaluate arguments, and their attitudesare a function of this activity,whereas unmotivatedsubjects appearto be affected by cues that not requirethoroughprocessing and which seem to occur through peripheral mechanisms These include cognitive mechanisms, such as heuristicprocessing and attributionalreasoning, and affective mechanisms,such as classical and operant conditioning (for a discussion of a hierarchyof peripheral effects, see Maclnnis and Jaworski 1989) BrandLoyalty,Involvement,and Persuasion Whenconsumersbrowse throughan FSI, theirmotivation to process brand information is likely to depend on their brandloyalty or commitmentand their level of involvement in the product category Consumers see many advertisements while scanningan FSI and must decide which ones to processthoroughly.Previousresearchhas shown thatpeople prefer informationthat has high utility for goal attainment (for a review, see Eagly and Chaiken 1993) Because the goal of consumers is to decide whether to clip a coupon, their motivation to process information will depend on whetherthis can help them make the decision Loyal2 customershave alreadydecided which brandto buy,and so they have little incentive to process brand information.Switchers3have no specific brandin mind and must decide whether the couponed brandis of interest.This decision is required even if they have used the brandpreviously.Thus, switchers are likely to be motivatedto process brand informationin high-involvementproductcategories 2Here,we focus on customers who are loyal to competitors'brands.We believe that our theoretical reasoning applies to customers who are loyal both to the promotedbrandand to competitive brandswith respect to motivation to process information,but at this point, we not have sufficient empiricalevidence to supportthis claim However,even though we expect that customerswho are loyal to the advertisedbrandwill have low motivation to process information,the effect of peripheralcues on attitudes and clipping is less clear Preexisting attitudes acquired through experience with the promotedbrandmight overridethe effect of the peripheralcues 3Therecan be various motivationsfor brandswitching Consumersmay switch brandsbecause they think they have found a betteralternativeor to satisfy variety seeking (for a discussion of variety seeking, see Feinberg, Kahn, and McAlister 1992) Whateveris the purpose for brandswitching, we arguehere that as long as the productcategory generateshigh levels of involvement,switchers will be motivatedto process brandinformation This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions FSI Coupons 475 Customerswith low involvementin the categorylack motivation to process informationbecause they not really care which brandthey buy Even switchers who buy many brandsover time will be unmotivatedto process arguments and instead are likely to use heuristics, such as "buy the cheapest"or "clip the coupon regardlessof the brand"(for a discussion of choice heuristics,see Hoyer 1984) In summary,and consistent with the work on brandloyalty previously reviewed, for low-involvement productcategories, neither brand-loyalcustomers nor switchers will be motivated to process information.Conversely,for high-involvementcategories,switcherswill be motivatedto process information because they are not sure what to buy Loyal consumers will not be motivated,because their branddecisions are made already.4 EXPERIMENTS LABORATORY STUDY1 We design an experimentto study the effect of FSI executional cues on brandattitudesas a function of brandloyalty Because loyalty is expected to have an effect only under high involvement, we chose a product category (fruit juices) that scores relativelyhigh among packagedgoods In the experiment,three types of FSI advertisementsare used, and each has a basic productdisplay and a headline: (a) is the product display only, (b) includes brand information, and (c) includes an attractivepicture(see Figure 1) Our frameworkpredictsthatthe threeadvertisementswill vary systematically in their effectiveness dependingon customer brand loyalty We expect loyalty to create low motivation, which leads to low processingof information.Therefore, the information-orientedadvertisementshouldhave little impact on brandattitudefor loyal customers However, under low processing of information,persuasion has been shown to be affected by peripheralcues, such as attractive pictures, that not require the processing of arguments Thus, as long as the picturegeneratespositive affect, we expect loyal customers to be influenced positively towardthe advertisedbrand Brand switchers, on the other hand, should be motivated to process information.Therefore, the advertisementwith product-specific information should influence their attitudes, and, as long as the information leads to positive thoughts,the impact should be positive Conversely,the advertisement featuring a picture without brand information provides no arguments to process and elaborate Even though persuasioncan be influenced by peripheralcues that not requireprocessing of message arguments,if the motivation to process information is high, the advertisement with a picture lacking productinformationshould exert little influence (for additional evidence, see Miniard et al 1991) Thus, for brand switchers, the information-oriented advertisementshould have more impact on attitudethan the one featuringan attractivepictureand no brandinformation Finally, if the advertisementsimply displays the product and contains essentially no brand informationand no peripheralcues, then attitudetowardthe promotedbrandwill 4The claim that loyals will not be motivatedto process informationis limited to the context of noncomparativeadvertisements.When loyal consumers encountera comparativeadvertisementannouncingthattheir brand is inferior to the advertisedbrand,they may become motivatedto process the brandinformation.This issue is taken up furtherin the discussion not be enhanced by either of the mechanisms we have discussed We expect, therefore,that this advertisementwill be inferiorin its impacton brandattitude,relativeto the advertisements using executionalcues More formally,we have the following: HiA: Brand loyalty interacts with executional cues: For cus- tomers with high loyalty to a competitive brand,an advertisement featuringan attractivepictureand no targetbrand informationwill generate a more positive attitude (and a higher propensityto clip) than an advertisementproviding brandinformation.Forcustomerswith low loyalty (switchers), an advertisement featuring brand information will generate a more positive attitude(and a higher propensity to clip) than an advertisementfeaturingan attractivepicture and no brandinformation HIB:Compared to an advertisementfeaturing product display only, advertisementsfeaturingexecutionalcues will generate a more positive attitudetowardthe brand(and a higher propensityto clip) EXPERIMENTAL METHODOLOGY Overview Coupon clippers were recruitedunder the cover story of testing a new technology for coupon clipping, namely coupon scanning In the lab, subjects were given experimental FSIs similar to the ones found in the Sunday newspaper and were told to "scan"the coupons that they would clip at home They were then asked to answer a series of questions on an experimentalbrandand two filler brands Subjects A total of 180 subjects, male (15%) and female (85%), participated in the experiment The average age was 37 years These subjects were staff membersat an Easternuniversity Twenty-four subjects had to be dropped because they did not provide complete answers Subjects who were not users of the productcategory also were dropped Subjects had been screenedon the basis of theircoupon clipping experience and only regular (more than twice a month) coupon clippers were selected to participatein the experiment Subjects also were screened on their level of involvement with the experimentalproductcategory (fruit juices) They were asked to rate ten productcategories using the PII (personal involvement inventory) scale (Zaichkowsky 1985) Only subjects rating the experimentalproduct category as a relatively high-involvementproduct(PII rating > 110) were selected The subjectswere paid $10 for their participation.They were assigned randomlyto one of threeexperimental conditions: (1) an information-orientedadvertisement, (2) a pleasant picture without brand information, or (3) a picture of the package only (no information, no pleasantpicture) Finally, because the experimentalbrand is not fictitious but real, and given that the focus of this article is on brand switchers and customers who are loyal to competitive brands,people were asked to list the brand(s)of fruitjuices they had used in the past year Forty-fourpercentof the participants were classified as nonusersof the brand.Only the results of those subjects are reported Stimuli For the information-orientedadvertisement,it was necessary to ensure thatthe informationwas persuasive,so thatits This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 476 JOURNALOF MARKETING RESEARCH,NOVEMBER1997 Figure EXPERIMENTALFSI ADVERTISEMENTS Try the flavorful taste of Ocean Spray CranberryJuice Try the flavorful taste of Ocean Spray Cranberry Juice * Ocean Spray Cranberry * Ocean Spray CranberryJuice Is also Juice is a healthy and refreshing alternative to high In vitamin C and soft drtnks very low In soditm * Ocean Spray Cranberry.Juice has ro added preservatives flavorings or colorings SAVE E - l q t I I I I II I I I * ^* l ^ CranbtrryDrinks hmmi nm mminmmmmmminm Urrr I I I I I I I I I ^ 'Whenoubuyan' 48o? botte of ? 1rrr L I I WoubuaL 48 OceAnlrr |S,Dr!sJ CrunberryDrinks l '1 ^ 1_^^ S_"S##_" -_S (b) (a) Try the flavorful taste of Ocean Spray CranberryJuice N -,.:, -' m - 'A, $q : v / a I SAVE I I I I I when ,z,o I I I 48Co I - buy anv '' oktf* -t,,1,rt Drinks I t 'i j This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions (c) 477 FSI Coupons elaboration would generate positive thoughts Ten claims that had already been used in advertisementsfor this brand were pretested Twenty subjects were asked to rate the claims for the experimental product on two seven-point scales (very weak/verystrong;not at all persuasive/verypersuasive) The three claims with the highest ratings(means > 5.9) were used in the information-orientedadvertisement They were "BrandX has no addedpreservatives,flavorings, or colorings,""BrandX is high in VitaminC and very low in sodium,"and "BrandX is a healthy and refreshingalternative to soft drinks." For the advertisementwith a pleasantpicture, it was necessary to ensure that the picture was attractive so that it would generate positive affect Five pictureswere pretested by the same twenty subjects, who rated them on a sevenpoint scale (not at all attractive/veryattractive).The picture selected (mean = 5.2) was a pictureof people at the beach Finally, the three advertisingexecutions were pretestedto see whetherthey would blend with typical advertisementsin FSIs For each of the three experimentaladvertisements,a set of four advertisementsof the same type was prepared Subjects in the pretestratedthe advertisementson four seven-point scales (good/bad, like/dislike, irritating/notirritating, interesting/notinteresting).Fromthe pretest,it was concluded thatthe experimentaladvertisementswere not significantly differentfrom typical advertisementsin FSIs Except for the experimental manipulations,the other elements of the advertisementexecutions were the same (except for the size of the picture of the package, which had to be made smaller in the advertisementwith an attractivepicture) In all three cases, the headline invited the readerto enjoy the product with the tag line "Trythe flavorful taste of Ocean Spray!" All of the experimental advertisementswere full page (see Figure 1) To create the FSIs, 21 coupon advertisementsfor different productswere scanned and printedusing a color laser printer, which produces a quality similar to the real FSIs These coupons were selected so that all three creative approaches used in the experimentaladvertisementwere equally represented This was done to be sure that the experimentaladvertisementswould not standout from the others Finally, for each FSI, the coupon (and its respective print advertisementcomponent) for the experimentalbrand was insertedas page of 22 pages All of the expirationdates on the coupons were edited to expire at least threemonths from the time of the experiment were questions consistent with the cover story Subjects were asked on a scale from I to whetherthey liked using the coupon scanner and whether they found that using the scannerdistractedthem from deciding which coupons to select They were then asked whether they thought using the scannerresultedin getting the same numberof coupons they otherwise would have clipped Subjects then received a series of questions first with respect to the experimentalbrandand then two filler brands (one brandof pain reliever and one brandof laundrydetergent) that were also promotedin the FSI On the first page of the booklet, subjects were given the three productcategories (those of the experimentalbrand and the two filler brands) with five brands listed for each category Subjects were asked to select the correct brandnames from among these five brands.No specific predictionswere made for the memory data Next, subjectswere asked to list the thoughtsthat crossed their minds as they examined the advertisementfor the experimentalbrandand then for the two filler brands.Subjects were then asked to provide their attitudetowardthe advertisementfeaturingthe experimentalbrand,theirpurchaseintention,and theirattitudetowardthe experimentalbrand.Finally, they were asked about theirpatternof usage of the experimentalbrandand of the filler brands.At the end, subjects were asked to write down what they thought the purpose of the study was Upon completion of the questionnaire, the subjects were thoroughlydebriefed,thanked,paid for their participation,and dismissed LaboratoryProcedure The idea behind our cover story of testing a new technology was that to avoid the trouble of cutting the coupons, consumers would simply be able to scan the coupons they wished to use Because the experimentwas done at a wellknown engineering school, the participantsfound this quite plausible and were enthusiasticabout the technology Subjects were run individually.As they arrivedat the laboratory, they were trainedin the use of the scannerand were instructed simply to proceed as they would in their living rooms and scan the coupons they would clip They were then given the FSI booklet containing the advertisingstimuli and told to raise their hands when finished When subjects completed perusing their FSIs, they received a questionnaire.On the first page of the questionnaire Checkson BrandRecognition Checkson Cover Story and Demand Characteristics After completing the last questionnaire,the subjects were asked to write their thoughts regardingthe purpose of the experiment.An analysis of these statements indicated that none of the subjects guessed the true purpose of the study To the cover story questions,subjectsansweredthatthey felt positive about using the scanner(mean = 3.26, on a scale of to 9, where is very much and is not at all) and that using the scannerdid not distractthem from the task (mean = 1.82, on a scale of to 9, where I is not at all and is very much) Finally,84%of the subjectsindicatedthatthey "cut" the same number of coupons in our lab as in their living rooms These ratingsdid not differ by experimentalconditions or degree of switching (for our operationalizationof switching, see the next section) Recognition of the brandname (Ocean Spray) was high (mean = 90) There were no significantdifferencesbetween advertisingexecutions and no significanteffect of degree of switching on recognitionof the brand DependentVariables (1) Attitudetoward the promoted brand (brand.attitude) Subjects ratedtheiroverall impressionof the brandon three nine-pointdifferentialscales anchoredat I and (good/bad, favorable/unfavorable, satisfactory/unsatisfactory) Purchase intention was assessed on a nine-point scale, by asking how likely it would be that subjects would purchasethe experimentalbrand"the next time they needed this product category."The end points of the scale were I (not at all like- This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 478 JOURNAL OF MARKETINGRESEARCH, NOVEMBER 1997 ly) and (very likely) Because the intercorrelationsamong all four of these scales were high (all Rs > 80), responses were averagedto assess brandattitude,a general attitudetowardthe brand (2) Propensity to clip (clipping) Clipping behavior (whether the coupon for the experimental brand was scanned)was recordedby both the hand-heldscannerand an unobtrusiveobserver.The correlationbetween the two was high (R = 89), and therefore the clipping behavior as recorded by the scanner was used (Clipping = if the coupon was scanned, and if not.) The hypotheses are tested by a linear contrast model with brand attitude as dependent variable and by a logistic regression model with clipping as the dependentvariable The linear contrast model for brand attitude potentially containshigh-orderinteractionterms.Runningthe full model producedseveral terms with low significance Discarding these, we test the hypotheses with the following model: IndependentVariables (1) Advertising execution As previously described, the three advertisements included two with executional cues (one with an attractivebeach pictureand the other with information-orientedcopy) and one with a simple productdisplay only (2) Brand loyalty (switching) Brand loyalty enters the analyses through a variable that is its opposite, switching Our measureof switching is the numberof brandsthe subject reportshaving bought during the previous year, minus one (The minus one makes switching = mean "no switching" or "completely loyal".) Our original plan was to assess brandloyalty by collecting a proportion-of-purchasemeasure First, subjects listed the names of the brandsthey bought in the previousyear in the productcategory.Then they indicatedthe proportionof times they bought each of the brandsthey listed This measure has been shown to have good test/retestreliability(see Jacoby and Chestnut 1978) However, subjects did not always provide the data requested Some just listed brands without providing the proportionof time purchased.As a substitute,we chose the numberof brandspurchasedin the previousyear as a (negative) indicatorof loyalty This measure has been used previously (Farley 1964) and correlates highly (.76) with the proportionof purchasemeasurefor the subset of subjects that provided both types of information Because number of brands is negatively related to loyalty, for clarity, we refer to the variableas "switching." (3) Picture versus information contrast (pic.vs.info) A dummy variable,pic.vs.info, assesses the differentialeffect between the two advertisementswith executional cues and enters as an explanatoryvariablein the linearcontrastmodels This variableequals for an observationinvolving the advertisementwith a picture,-1 for the information-oriented advertisement,and for the simple productdisplay (4) No cues versuscues contrast(nocue.vs.cue) A second dummy variableassesses the differentialeffect between the simple productdisplay only and the advertisementswith executional cues The variableequals for observationsusing the advertisementwith productdisplay only and -1 for eitherof the others (5) Interactions.The variables given previously can be used to generate interaction variables for a general linear model A correspondingmodel with clipping as the dependent variableand the same independentvariableshas been runas a logistic regression.The calibratedmodels appearin Table 1, PartA along with the simple means of the attitudevariables for each cell in Table 1, PartB Models The experiment focuses on two principal hypotheses: HIA, a predictedinteractionbetween loyalty (switching) and executional cues, and HIB a predictedsuperiorityof advertisements with executional cues over productdisplay only (I1) = bO+ bI(switching) brand.attitude + b3(nocue.vs.cue) + b2(pic.vs.info) + b4(pic.vs.info*switching) RESULTS theoretical The main prediction is that, when loyalty is = the advertisementwith an attractive 0), high (switching picture will generate higher brandattitude than the advertisement with brand information.This is supportedby the Table 1 RESULTSOF EXPERIMENT A Regressionsof AttitudeTowardthe Brandand Clipping on Switchingand ExecutionalCue Variables VARIABLE (coefficient) AttitudeToward the Brand (brand.attitude) Propensity to Clip (clipping) COEFFICIENT (t-value) COEFFICIENT (t-value) intercept(bO) 4.491 (8.40) -1.204 (-2.35) switching (b l) 277 (.85) 359 (1.17) pic.vs.info (b2) 1.337** (2.02) 763 (1.16) nocue.vs.cue (b3) -.269 (-1.34) pic.vs.info*switching(b4) -.897** (-2.27) 1914 (1.05) -.625* (-1.62) 05 AdjustedR-square Chi-square 5.11 B Mean AttitudeTowardthe Brandas a Function of Switchingand ExecutionalCues (numberof subjects is shown in parentheses) BratndLoyaltv ExecutionalCues Productdisplay Pleasantpicture Information Loyal Switcher 4.44 (17) 5.67 (14) 4.93 (12) 4.59 (8) 4.75 (10) 5.40 (8) N = 67 **p < 05 *p < 10 This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions FSI Coupons 479 positive and significantb2 for the pictureversus information contrastvariable(t = 2.02, p < 05) Furthermore,as switching increases (loyalty decreases), the information-orientedadvertisementworks increasingly well, as predicted.This is indicatedby the negative and significant b4 for the interactionbetween picture versus information and switching (t = -2.27, p < 05) Therefore, the predicted interaction between switching and executional cues of HIA is supported The theory also predicts that the presence of executional cues (picture or information)is better than productdisplay only This is supportedby the negativecoefficient b3 for the no cue versuscue contrast(t = -1.34, p = 18) However,this does not reach significance So HIB is only directionally supported Clippingshows a similaroverallpattemof resultsas brand attitude,but is considerablyweaker(second column of Table 1, PartA) The coefficient for pictureversus informationwas positive but did not reach significance However,the coefficient for the interactionof picture versus information by switching was negativeand significant(p < 10), which suggests again that as switching increases (brand loyalty decreases) the information-orientedadvertisementgenerates more clipping thanthe attractivepicture.The second contrast (no cue versuscue), which captureswhetherexecutionalcues surpasssimple productdisplay,did not reach significance Discussion The results of the experimentsuggest that for a high-involvement packaged good, different executional cues in a coupon influence persuasiondifferentlydependingon loyalty For brand-loyalconsumers,an advertisementwith an attractivepictureand no brandinformationwill generatehigher brand attitude than an information-orientedadvertisement For switchers, on the other hand, an information-oriented advertisementwill generatehigher brandattitudeand a higher likelihood of clipping than an advertisementwith an attractivepicture and no brandinformation.The weaker effect found on propensityto clip is perhapsnot surprising given that we measure one single behavior that could be a function of many factors in additionto brandattitude(such as whether the customercurrentlyneeds the product).Conceivably, a composite index of behaviorsor a laboratoryenvironment enabling the recordingof several successive behaviors might producestrongerresults Combining across both types of consumers, the effect of the two executional cues on propensityto clip was not significantly higher than thatof the baseline advertisementof a simple productdisplay Finally, we discuss possible concerns about our measure of brandloyalty It could be arguedthatthe measuremay reflect involvement with the task as well as brandloyalty In other words, subjectswho are more involved in the task may list more brandsand be more motivatedin searchingfor information However, if this were true, we would expect a significant correlationbetween the numberof brandslisted in the three productcategories (experimentaland two filler brands),because subjects who are highly involved in a task should list a higher numberof brandsin all three categories However, the pairwise correlationsbetween the numberof brandslisted in the three categories are not significant Another possible problemmight be thatthe measureof loyalty could be a functionof the family size However,information on family size was collected and the additionof this variable to the model does not affect the significance of the focal variables Finally, we note that the two studies cited in the literaturereview measured brand loyalty differently from each other (attitudinalmeasure and repeat purchasebehavior) and from us The results of all three studies, however, are mutually supportive.This suggests that our conclusions are robustwith respect to the loyalty measureused STUDY2 A second experimentwas designed to test furtherthe hypothesized process and replicate the first study using a different brand.Our frameworkproposes that loyal customers react more favorably to an attractivepicture than to brand informationbecause they are poorly motivated to process information Switchers, on the other hand, are well motivated, because informationcan help them make their brand decisions If this is the case, a change in picture attractiveness (a peripheralcue) will influence brand attitude more for brandloyals than for switchers, whereas a change in argument strength will influence attitude more for switchers than for loyals Therefore,the second experimenttested the following: of the backgroundpicturein an advertiseH2:Attractiveness mentwill have a greaterimpactfor brandloyalsthanfor brandswitchers,whereasargumentstrengthwill have a greaterinfluenceforbrandswitchersthanforbrandloyals Subjectsand Design A total of 110 male and female consumersparticipatedin this experiment Subjects were paid $10 for their participation As in the previous study, only subjects who were users of the productcategory, had relatively high involvement in the productcategory, and were nonusers of the experimental brandwere retained Subjects were assigned to each of the cells in a (argumentquality: strong or weak) x (cue: attractiveor unattractivepicture)design Subjects were run individually The third factor, degree of switching, was measured Procedure,Stimuli,and Dependent Variables The procedureand the dependentvariableswere the same as in the previousexperiment.The productcategory was also the same (fruitjuice), but the promotedbrandwas different (Tropicana) IndependentVariables (1) Argumentstrength.A varietyof argumentsfor orange juice were pretestedon a sample of graduatestudents.In the strong arguments advertisement, the six following statements were made: is 100%purefruitjuice, notfromconcentrate *Tropicana *Ithas no addedsugars,no artificialflavorsor colors,and no preservatives is squeezedonly fromorangesthatmeet its strict *Tropicana qualitystandard *Itsrichorangiertasteis almostlike takinga biteoutof a fresh orange wedge *Itprovides your family with a full day's supply of vitamin C *It'sthe leading brand This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 480 JOURNAL OF MARKETINGRESEARCH, NOVEMBER 1997 In the weak argumentsversion of the advertisement,the following six statementswere made: is madefromconcentrate *Tropicana and *It'smostlynatural: a smallportionis artificialpreservatives sweeteners is squeezedfromgoodoranges *Tropicana *Ithasa richorangytaste *ItprovidesyourfamilywithsomevitaminC *It'stheno brand (2) Attractiveness of the picture The pictures selected were similar to those used in the first study of Miniardand colleagues (1991) Their pictureswere found to have an impact underlow involvementbut not underhigh involvement We pretestedseveral pictures and selected two for their attractivenessand appropriatenessgiven the productcategory In the attractive/appropriate (henceforth referredto as attractive)condition, the backgroundpicturewas a beach with sand, ocean, and palm trees In the unattractive/inappropriate (henceforth referred to as unattractive)condition, the backgroundpicture showed a gorilla in front of trees (3) Switching Subjects were classified as loyals or switchers as a function of the numberof brandsthey listed as having used in the past year Subjects who had listed only one brand (32 subjects) were classified as brand loyal Subjectswho listed more thantwo brands(42 subjects)were classified as brand switchers Subjects who listed exactly two brandswere dropped Results Brandattitudesas a function of switching, pictureattractiveness, and argumentstrengthappearin Figure2 The panel on the left shows the interactiveeffect of switching and picture attractiveness on attitudes toward the promoted brand.The panel on the right shows the interactiveeffect of switching and argument strength on attitudes toward the promotedbrand.A x x ANOVA (attractivenessof the picture/argumentstrength/switching)shows that the main effect of picture attractivenesswas borderline significant (F( 1,66) = 2.64, p = 10), with the attractivepicturegenerating higher attitude toward the brand than the unattractive picture (M = 6.80 and M = 7.29) The main effect of argument strength did not reach significance (F(1,66) = 1.88), though strong argumentshad a more positive effect on attitude than weak arguments(M = 7.31 and M = 6.75) The maineffect for pictureattractivenessmustbe qualified,however, in light of a significant interactionbetween switching and attractiveness(F(1,66) = 3.38, p < 10) Planned comparisonsrevealedthatcustomersloyal to competitivebrands evaluatedthe promotedbrandmore favorablywhen exposed to an attractivepicture (M = 8.0) than when exposed to an unattractivepicture(M = 6.47) (t = 2.19, one-tailedp < 05) Figure ATTITUDE THEBRAND TOWARD Switching and Picture Attractiveness Switching and Argument Strength 9 8.5 8.5 lo C ' 8 -m -,4c m2 in a) 7.5 7.5 :44 ow,J* Jw -w -ft i1 " 6.5 - - - - - - - - - -W -0 7 i w Or ! S' 6.5 4.5 A., 44: W -9 w 6 5.5 5.5 5LoyalsLoyals Switchers UnattractivePicture -Attractive Picture Loyals - - :.,Y: r aX v.>: S - - - : X B - ~.x yo W> - Switchers -*-Weak Arguments StrongArguments Note: Left panel shows interactiveeffect of switching and pictureattractivenesson attitudetowardthe experimentalbrand.Right panel shows interactive effect of switching and argumentstrengthon attitudetowardthe experimentalbrand This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 481 FSI Coupons In contrast,the brandattitudesof switchers were not influenced by the attractivenessof the picture(t = 40) The two-way interactionof argumentstrengthby switching did not reach significance,butcontrastanalyses revealed that, for switchers, a strong argumentgeneratedsignificantly more positive brandattitudes(M = 7.42) than a weak argument (M = 6.58) (t = 1.54, one-tailedp < 10) However, loyal consumerswere not affected by argumentstrength(t = 28) Neither the interactionof attractivenessby argument nor the three-way interaction approached significance Analysis of the clipping data parallels the results obtained on the attitude data For loyals, propensityto clip was affected by attractiveness(t = 1.39, one-tailedp < 10) (M = 53 for unattractivepicture and M = 77 for attractivepicture) but not by argumentstrength (t = 50) (M = 67 for weak argumentsand M = 60 for strongarguments),whereas for switchers the impactof argumentstrengthwas significant (t = 1.99, one-tailedp < 05) (M = 60 for weak argument and M = 86 for strongargument)but the impact of attractivenesswas not (t = 66) (M = 77 for unattractivepicture and M = 71 for attractivepicture) Discussion The results obtained in Study paralleland extend those of Study The fact that loyal consumers are affected by pictureattractivenessbut not by argumentstrengthsuggests that loyal consumers have low motivationto process information Thus, peripheralcues would be more effective to persuadethem However,the fact thatswitchersare affected by argumentstrengthsuggests that this segment is motivated to process information and should be targeted using strong arguments An alternativepredictioncould have been derived from the literature.It has been shown that subjects counterargue when presentedwith a counterattitudinal message (Petty and Cacioppo 1979) On the basis of that finding, we could argue thatloyal customerswould be motivatedto counterargue the claims made in an advertisementfor a competitivebrand Our data not offer supportfor this view: In Study 1, loyal customers show no difference between product display only and the productdisplay with informationbut are affected by the presence of an attractivepicture lacking product information.Admittedly,in Study 2, the lack of effect of argument strengthon loyal customerscould possibly be the result of them counterarguing(central processing) However, as shown in Petty, Cacioppo, and Schumann (1983), both central and peripheralpersuasionroutes can occur simultaneously underlow-involvementconditions,but only the central route occurs under the high-involvement conditions Consequently,counterarguing,if it occurs, does not conflict with our claim that loyal subjects were not motivated to process brandinformation.We believe that the low motivation occurs because, for real brands, consumers are faced daily with a plethora of "counterattitudinal" messages and cannot possibly process them all Thus, one way consumers reduce the number of messages to process is by ignoring those about productcategories in which they are loyal to a brand.In addition, many competitiveadvertisementsare not counterattitudinal.They not try to convince the consumer thathis or her brandis bad but simply thatsome other brand is good This is the case unless it is a comparativeadvertisement, in which the brandto which a customeris loyal is ad- vertised It is possible that loyal customers would be motivated to process informationwhen exposed to such comparative advertisements,and so we consider that type of executional cues to be one that requiresfurtherinvestigation SCANNERDATAANALYSIS Additional supportfor our conceptual frameworkcomes from a different source: a cross-sectional study of FSI coupon effectiveness as measuredby scannerdata The laboratoryexperimentsfocused on the interactionbetween executional cues and loyalty in a single high-involvement productcategory.For the cross-sectional study, loyalty data were not available, but multiple categories were Furthermore, measuresof consumers'involvementin the categories could be constructed.Therefore, we use our frameworkto predictthe effect of executionalcues on FSI effectiveness as a function of category involvement As was mentioned previously, the main goal of coupons is to increase brand sales relative to their level without coupons Only in this way can a coupon defray its cost and show a profit Therefore,a critical measureof effectiveness for the manager is the proportionof coupon redemptions that represent incremental sales This is generally called "coupon efficiency" and is measured by InformationResources Inc (IRI) in its commercial service, CouponScan (for a discussion of CouponScan methodology, see Little 1994) Coupons can increase incremental sales by stimulating brandpurchasesby switchers or by customers who are normally loyal to competitive brands As we have already shown, information-orientedadvertisementsimprove brand attitude for switchers in high-involvementcategories Our frameworkalso predictsthat information-orientedadvertisements should not affect attitude for switchers in low-involvement categories, because in such cases even switchers not have the motivation to process messages Furthermore, informationshould not affect loyal customersbecause they lack the motivationto process it regardlessof their involvement Because switchers are a main source of incremental sales, we propose the following hypothesis: will haveno effecton couponefficiency H3:Brandinformation of couponredemptions thatareincremental (theproportion sales) for productcategoriesgeneratinglow levels of consumerinvolvement As involvement theeffectof increases,5 brandinformation on efficiencywill increase The effect of an attractivepictureis harderto predict.It is expected to be effective for both low- and high-involvement productsbut in differentloyalty segments For high-involvement categories, an attractivepicture should producea positive attitudegain for loyal customersbut not for switchers.6 For low-involvement, an attractive picture should have a positive impactfor all consumers,loyal or not Thus, the dif51nvolvementis usually conceptualized as a dichotomous instead of a continuous variable Here, the analysis was done both ways (treating involvementas a continuous and a dichotomous variable)and yielded the same results 6Weexpect that attractivepictures should exert little influence on brand switchers in high-involvementcategories even if a peripheralcue's influence operates throughan affect-transferprocess This is because issue-relevant thinking is viewed as the dominant determinantof attitudes when motivation is high (for a similar view and supportiveempirical evidence, see Miniardet al 1991) This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions 482 JOURNAL OF MARKETINGRESEARCH, NOVEMBER 1997 ference in effect between the two cases appearsto dependon the proportionof loyal customers in the productcategory; however, loyalty is not measured in our data We argue, however, that switchers are likely to be a more important source of incrementalsales than loyal customers,especially in large categories with many brands Because switchers will not be affected by an attractivepicturein high-involvement categories, we expect that, as involvementin the category increases, the effect of an attractivepictureon coupon efficiency will decrease.7More formally, were adults who had identified themselves as coupon clippers and were from a populationpresumedto be similar to the populationcapturedin the IRI data set From a possible Pll rangeof 20 to 140 (20 one- to seven-pointscales), the involvement ratingsof the six productcategories were category bar soap fruitjuice breakfastcereals analgesics cookies crackers margarine H4:An attractivepicturewill havea positiveeffecton coupon low levelsof inefficiencyforproductcategoriesgenerating volvement.As involvement increases,theeffectof anattractivepicturewill decrease METHODOLOGY Overview The database for the study consists of print advertisements for 387 coupons evaluatedby IRI's CouponScanservice, along with their measured efficiencies The coupons come from six product categories: cookies, crackers, margarine, fruit juice, bar soap, and breakfast cereals Each coupon was coded for two executionalcues: the presenceof brand information and the presence of visual elements (equivalentto an attractivepicture) For each category, we also constructeda measure of customer involvement Efficiency was then modeled as a function of information,visual elements, involvement, and two furthervariablesknown to affect efficiency: brandshare and coupon face value DependentVariable The dependentvariableis coupon efficiency This is measured by IRI as follows: Household purchasedata collected by scannerpanels are combined with informationcollected in store to calibrate a multinomial logit model of sales (Guadagniand Little 1983) for each couponed productbefore the coupon drop.Then incrementalsales afterthe event are measuredby predictingsales (with the model) in the absence of the drop and subtractingthem from actual sales The periodof measurementincludes all weeks duringwhich appreciableincrementalsales would be expected (from experience with the category) or the time until a subsequent coupon event for the brand.The efficiency of the event is calculatedby dividing the resultingincrementalsales by total redemptionsales; the measurementof sales is standardized across brand sizes by convertingto productsales volume (in ounces or other physical units) per unit of time Thus, efficiency equals incrementalweeks of sales divided by redemptionweeks of sales for the couponed brand IndependentVariables To determine the level of consumer involvement with productcategory,each of the six categories was ratedby 40 raters using the PII scale (Zaichkowsky 1985) The raters 7Theeffect of an attractivepictureon proportionof coupon redemptions that are incremental sales is even more complicated than the way it is explained here An attractive picture would positively affect efficiency throughits effect on customerswho are loyal to competitivebrandsbut negatively affect efficiency throughits effect on customerswho are loyal to the promoted brand Because it is expected that for most brands more customers are loyal to all competitive brandsthan to the promotedbrand,we believe that the overall effect from loyal customers should be positive involvement index (PI/) 110 107 96 89 83 82 74 The involvementratings(mean = 90, standarddeviation= 12) werethenstandardized(mean= 0, standarddeviation= 1) The printadvertisementswere each coded by two ratersto create variables measuring the executional cues: brand informationand visual elements Each advertisementwas rated using a seven-pointscale (agree/disagree)on the presence of information and visual elements in the advertisement Each variablewas ratedusing two statements:For information, "The ad contains a lot of informationabout the brand" and "The ad highlights the benefits of the brandby providing information."For visual elements, "The only visual element in this ad is a picture of the package"(reverse score) and "In additionto a pictureof the package, the ad contains many visual elements (such as people, scenery,etc.)." Intercoder and item reliabilitywere all at least 79 The mean rating for presence of "informationabout the brand"was 2.97 and for "presenceof visual elements" was 3.36 The correlation between the two executionalcues was -.225 Two other independentvariableswere introduced:brand share (measured as share of market in percentage points) and coupon face value (measured in dollars) Previous research(Irons,Little, and Klein 1983; Klein 1981) has shown these variablesto influence efficiency Model Because efficiency is constrainedto lie between and 1, we can conveniently and robustly model it by logistic regression Let z = efficiency, x = a vector of the independent variables,and b = the correspondingvector of coefficients The logistic regression is z = exp(bx)/[l + exp(bx)] By making the transformationy = ln[z/(l - z)], the model becomes y = bx, and we can estimatethe coefficients using ordinaryleast squares Therefore,expressing variablesin words, we estimate b's in the following regression: (2) In[ efficiency 1= bO+ b I (face.value)+ b2 (brand.share) ( I - efficiency)] + b3 (visual.elements) + b4 (information) + b5 (involvement) + b6 (information*involvement) + b7 (visual.elements*involvement) Each coupon provides one observation This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions FSI Coupons 483 RESULTS The logistic regressionmodel explains a statisticallysignificant portion of the variance and has an adjusted R2 of 083 (see Table 2) The coefficients for brandshareand face value were significant (p < 05) and related to efficiency as expected from the literature.Brand share affects incremental sales negatively, because higher share makes it difficult to generate more incrementalsales A higher face value improves incrementalsales As predicted, the interaction between involvement and brand information is positive and statistically significant (t = 1.99, p < 05) Therefore,as involvement increases, the effect of informationon coupon efficiency increases, as hypothesized In the case of informationby itself (standardized involvement = 0), we postulatedno effect Applying a two-tailed test, we find no significance (p = 16) Thus, H3 is supported Also as predicted, the interactionbetween involvement and visual elements is negative, though it is only marginally significant (t = -1.41, one-tailed p < 10) Thus, as involvement increases, the effect of visual elements on coupon efficiency decreases When involvement is equal to the mean involvementrating,the effect of visual elements is positive and significant (t = 2.43, p < 05) Therefore,H4 is also supported Discussion The analysis of coupon efficiency shows that executional cues interact with category involvement to affect performance, as predictedby our theoreticalframework:Brandinformation in an FSI advertisementaffects incrementalsales Table SCANNER DATACOUPON EFFICIENCIES MODELED BY LOGISTIC REGRESSION Variable Constant Face Value Brand Share Visual Elements Coefficient (t-value) -.365 (-1.48) 681 (2.60) -.032 (-2.84) 099 (2.43) Information -.050 (-1.39) Involvement -.051 (-.24) Information*Involvement 074 (1.99) Visual Elements*Involvement Adjusted R-Square -.055 (-1.41) 083 (N = 387) Note: Coupon efficiency, modeled by a logistic regression, shows the predicted interactionbetween executional cues and category involvement "Information"copy increases efficiency more at high involvementthan at low involvement "Visual elements" in copy increases efficiency but does so less at high levels of involvement only for high-involvementproducts,presumablybecause of the persuasiveeffect of the informationon switchers.In contrast,the presenceof visual elements has a strongereffect on incremental sales for low-involvement categories than for high-involvement categories We have thus been able to demonstratethe effects of executional cues in a real world context GENERALDISCUSSION We have shown thatexecutionalcues matterin coupon advertising They can affect brand attitude, propensity to clip, and coupon efficiency Furthermore,they so in ways thatdepend on brandloyalty and level of involvementin the productcategory In particular,loyal consumers lack motivation to process information,and so we found that an advertisementwith an attractivepicture (peripheralcue) generateda more positive attitudethan an informationaladvertisement Conversely,switchers are motivatedto process informationfor high-involvementproducts,and we found that an informationaladvertisementgenerated a more positive attitudethanan attractivepicture.As involvementdecreases, so does this effect, until for low-involvementproducts, attractive pictures dominate brandinformationfor achieving coupon effectiveness Fromthe point of view of theory,the linking of brandloyalty to motivation is important.Such a link has been suggested (e.g., see Hoch and Deighton 1989) but has not been previously demonstratedempirically.Although brandloyalty is an importantconcept in marketing,little experimental workhas been done on this topic in the past two decades (for an exception, see Kahnand Raju 1991) In addition to linking brand loyalty to motivation, our frameworksuggests that loyalty interacts with product involvement Note that this conceptualization is consistent with and extends the seminal work of Jacoby and Chestnut (1978) Their definitionof brandloyalty requiresthatrepeat purchasebehaviorbe the resultof a postpurchaseevaluation of the product.In other words, the consumer must perceive that purchasingthe brandsatisfies needs betterthanexisting alternatives.If repeatpurchaseoccurs simply to reduce cognitive effort, the process is described as habitualpurchase, not brandloyalty Linking this distinctionto our framework suggests that repeat purchase behavior for a high-involvement productis an indicatorof brandloyalty, whereas it is simply an habitualpurchasefor a low-involvementproduct A noteworthyaspect of this article is the use of two strikingly different methodologies to investigate a question of both theoreticaland practicalimportance.Neither method is perfect: laboratoryexperiments may lack external validity, and scannerdata lacks control Nevertheless,we believe that the combinationof analyses, thoughnot strictlycomparable, adds considerable convergent validity to our theoretical framework(for anotherexample of this approach,see Kahn and Raju 1991) In addition,scannerdata offers an opportunity to study the effect of advertisingin FSIs in the actual consumerenvironmentthat is of most interestto marketers Additionally,this researchhelps inform the debate about whetherpromotionsnegatively affect brandevaluations.On the basis of self-perceptiontheory,it has been proposedthat promotions may have a negative impact on brand image (Dodson, Tybout, and Stemthal 1978), because consumers attributetheir purchaseto the discount ratherthan the brand This content downloaded from 139.184.14.159 on Thu, 01 Oct 2015 09:47:33 UTC All use subject to JSTOR Terms and Conditions JOURNAL OF MARKETINGRESEARCH, NOVEMBER 1997 484 per se Recent empirical evidence, however, has challenged this assertion For example, Davis, Inman, and McAlister (1992) find no effect of price reductions on brand evaluations In our work, we show that promotional tools not necessarily hurt brand evaluations, and the appropriate executional cues in the design of a promotion can positively affect brand evaluations and coupon effectiveness This raises an interesting question as to whether FSI coupons are in a different class of promotional tools, as they provide an opportunity to enhance brand image, whereas promotions that are simple price discounts not Finally, these results have implications for advertisers For high-involvement categories with many switchers (as would be the case with a category having many brands but no brand with a dominating share), it is desirable to provide information on the benefits of a brand in the advertisement 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