To buy or not to buy?
A study which examined the influence of different types of advertisements (corporate vs. product-specific) on purchase intention and the mediating role of brand i mage and the
moderating role of ad involve ment
Manon van Duijn – 10758216 Prof. Dr. Brahim Zarouali
Master thesis
Graduate School of Communication Date: 31/01/2020
ABSTRACT:
The presented study aimed to examine the influence of type of advertisements (corporate vs. product-specific) on purchase intention. The expectance is that brand image plays a
mediating role in this relation and involvement with the ad plays a moderating role in this relation. Results show that there is a direct effect of brand image on purchase intention. Thereby, involvement with the ad seems to play a moderating role in the relation between type of advertisement and brand image but no effect was found between type of advertisement and brand image and between type of advertisements and purchase intentions. Limitations and implications concerning both research and managerial practices are offered.
Introduction
In the media environment of today, there are a lot of forms of advertisements. The distinction between certain types of advertisements is not new. In the increasing cluttered and
competitive advertising environment of today, advertisers try to find the form of advertising which works best to influence their target group. Brands help consumers to make decisions by differentiating themselves from their competitors (Çifci & Koçak, 2012). Therefore, it is of great importance for advertisers to know which form of advertisements works best.
Two common forms of advertisements are corporate advertisements and product-specific advertisements. Corporate advertisements are advertisements designed to build and maintain corporate image rather than to promote sales (Spangardt, 2016). Product-specific
advertisements focus mainly on one product or service of an organization and include a purchase call to action (Kim, Haley & Koo, 2009). Advertisers increasingly use corporate advertising instead of using product-specific advertising (Kim, Haley & Koo, 2009; Spangardt, 2016).
A lot of studies investigated the role of different types of advertisements on for instance brand image, purchase intentions and involvement with the brand, product or advertisement.
Biehal & Sheinin (1998; 2007) found that corporate advertisements can influence the beliefs one has about a brand and product-specific advertisement only influences the way one thinks about that specific product. Hoeffler & Keller (2002) found in their study that abstract messages are more likely to be transferred from a cause to a brand than concrete messages and through that enhance the brand image. As corporate advertisements are mostly more abstract than product-specific advertisements, it is expected that corporate advertisements enhance the brand image more than product-specific messages. Contradictory, Pashupati, Arpan & Nikolaev (2002) found that participants whom saw a corporate advertisement had a more negative brand image than participants who did not see the corporate message. This is an interesting finding while this is one of the only studies who found this contradictory result. Their explanation is that there is a possibility that people already had an overwhelmingly positive pre-existing image of the used brand in the study. Thereby, a lot of researches looked at the effects of various variables on brand image and purchase intention. Of course, it is a quite commonly known finding that a positive brand image enhances consumer’s purchase intentions (Martins, Costa, Oliveira, Gonçalves & Branco, 2019). Some studies also found that the relation between brand image and purchase intention can be mediated by several variables, like perceived quality (Chiang & Jang, 2007; Wu, Yeh & Hsiao, 2011). Grewal, Krishnan, Baker & Borin (1998) found in their study that store image has a positive effect on purchase intention. They claim that whenever the image of the store is positive, people feel like it has an added value to their purchase and are therefore more willing to buy at that store. This finding might also be applicable for the role of brand image. Brand image is not only a predictor in the relation with purchase intention. Brand image can also function as a
moderator on the relation with purchase intention (Wang & Yang, 2010). Wang & Yang (2010) found that brand image is a significant moderator on the relation between brand credibility and brand purchase intentions. They claim that if the brand has a good image,
consumers are more willing to believe the words the brand says. In this study, brand image will have the role of mediator. This will be explained later in the study. Involvement is a much researched subject in combination with advertising. In the study of Kim, Haley & Koo (2009), they have studied several forms of involvement. Next to advertisement involvement, they also measure technology and computer involvement. In their study, they used the
variable ad involvement as mediator. In this study, involvement with the ad will have the role of moderator. This will be explained later in the study.
As before mentioned, organizations are slowly shifting towards the use of corporate advertisements instead of product-specific advertisements (Kim, Haley & Koo, 2009; Spangardt, 2016). Overall, research shows that corporate messages indeed enhance brand image. However, one studie found that this is not the case. Furthermore, the results regarding product-specific advertisements are different. Some studies show no increase in brand image and others do show enhancement in brand image. Thus, there are quite a few mixed results. Therefore, it is important to look at these variables in this study.
Most studies are from around 2009 or before. As it is 2020 already, time has changed and the media and advertisement environment as well. Therefore, it is a good idea to conduct a research on corporate advertisement and product-specific advertisement in this era. In that way, it is possible to see if the changes in the environment also mean changes in the outcome of the research. In this way, we can clear the gap of the scientific knowledge about these concepts.
This study looks at the effects of corporate and product-specific advertisements on the purchase intention of people, and in addition, test if this effect is mediated by brand image. This study will test this on the basis of a hypothesized model. The reason to use brand image as mediator is because multiple studies show that brand image is an important predictor for purchase intention (Del Rio et al., 2001; Law & Lamb, 2000). This will be further explained
in the conceptual background part. This study also investigates the moderating role of the level of involvement with the advertisement. The reason to study the moderating effects of involvement with the ad is based on the Elaboration Likelihood Model of Petty and Cacioppo (1986). This will be further explained in the conceptual background part as well.
Conceptual background and development of hypothesis
Corporate advertisements vs. product-specific advertisements
Product-specific advertisements are also known as advertisements which show us products advertisers would like us to buy. Although this is a common practice, there are some brands which do not use advertisements explicitly about products you should buy. Brands like Nike for instance, also use a lot of corporate, non-product-specific advertisements. The brands try to build up a positive brand image through that kind of advertisements. This form of
advertisements grows each year (Kim, Haley & Koo, 2009; Spangardt, 2016).
As already mentioned, type of advertisements exists out of two options in this study: corporate advertisements and product-specific advertisements. Of course, there are loads more types of advertisements but in this study the focus will be on those two types. It is hard to find one clear definition of corporate advertisements because there are so many different
definitions used for the concept in scientific research. Corporate ads focus on the image of an entire corporation and rarely make a direct purchase appeal Kim, Haley & Koo, 2009).The primary objective of corporate advertising is to provide an overarching marketing support for the organization’s products by creating a favorable brand image. The focus of corporate advertising is often broader than the focus of product-specific advertising (Kim, Haley & Koo, 2009). Product-specific ads have a different goal. These ads mainly focus on one product or service of an organization and include a purchase call to action (Kim, Haley & Koo, 2009; Spangardt, 2016).
The expectance is that participants who saw the corporate advertisement will have a more positive brand image and therefore a higher purchase intention.
Brand image
The study includes the concept brand image. Brand image stands for the perceptions about a brand as reflected by brand associations held in the memory (Keller, 1993). As Keller et al. (2011) say “Brand associations reflect the meanings of brands to consumers through linking product information to the brand nodes existing in consumers’ memories, thus indicating product benefits and summary evaluations of brands.”
Focusing on brand image is not a new strategy, but what does a positive brand image mean for the purchase intention. Brand image is an important concept which relates to how consumers perceive the brand, and this can help predict the purchase behavior (Wang & Yang, 2010). According to Law & Lamb (2000), a strong brand image adds value to
consumer purchase evaluations. According to Del Rio et al. (2001), a favorable brand image has a positive effect on purchase intentions. Grewal, Krishnan, Baker, & Borin (1998) and Wang and Yang (2010) showed that brand image does have an influence on purchase
intention because a strong, favorable, and unique brand image is found to be positively related to willingness to pay for premium prices and higher brand equity. Thereby, Çifci & Koçak (2012) claim that corporate image has a positive influence on attitude toward the brand. Therefore, it could be that this can also possibly influence brand image. In this study, there is expected that brand image has a positive mediating role on purchase intention (Figure 1).
Involvement
Another concept which is covered in this research is the level of involvement with the advertisement. This concept stands for to what extend an ad is relevant for someone or in other words how important a person perceives an ad to be (Zaichkowsky, 1985). According to
Zaichkowsky (1985), there is no precise definition of involvement because involvement has to do with personal relevance. There are three factors which influence certain types of
involvement. In the case of involvement with the advertisements, all three factors play a role. These factors are; person factors, object or stimulus factors and situational factors. According to Zaichkowsky those three factors on involvement can influence the effectiveness of an ad to induce purchase.
The concept involvement with the advertisement is not as much used as involvement with the brand and involvement with the product. The reason to not study involvement with the brand is because the brand in the survey is made up. It is hard to measure involvement with a brand if participants have their first experience with the brand within the survey. Most of the time, that is too short to get involved with the brand. Involvement with the product is another commonly studied concept. In this study product involvement could fit for the group of participants who saw the product-specific advertisement. However, it would definitely not fit with the group of participants who saw the corporate advertisement. Participants in that group cannot rate statements, such as ‘The product is important to me’, if they saw an advertisement without any information about a product. In the case of this study, measuring product involvement would give biased results. For those reasons, involvement with the advertisement is included in this study.
The reason to include involvement with the advertisement in this study is based on the Elaboration Likelihood Model (ELM). According to this model, the processing of a message is influenced by the relevance of the message for a person. So, if the involvement of people with message is high, they will process the message through the central route. If the
involvement is low, they will process the message through the peripheral route (Petty & Cacioppo, 1986). Whenever people process the message through the central route, this could mean that the image they have of the brand change. Whenever people are low involved with
the message, their brand image will not change. Involvement with the advertisement is therefore included in the study as a moderator to get the two groups (high vs. low involved) divided in a clear way and test the possible influence of this moderator based on the ELM. In this study, there is expected that involvement with the ad has a moderating role on the relation between type of advertisement and brand image (Figure 1).
Purchase intention
The last concept in the question is purchase intention. Purchase intention stands for the predictor of subsequent purchase (Grewal, Krishnan, Baker, & Borin, 1998). It indicates the likelihood that consumers will plan or be willing to purchase a certain product or service in the future (Wu, Yeh & Hsiao, 2011; Martins, Costa, Oliveira, Gonçalves & Branco, 2019). In previous purchase decision research, it indicated that when an advertisement is relevant to a person, he or she is motivated to make a more careful purchase decision (Clarke & Belk, 1978). The reason to choose purchase intention because this variable is the closest towards the most important aim of advertisers, namely that a consumer buys the product. Since actual purchasing behavior is hard to measure, we chose to include purchase intention. Expected in this study is that purchase intention will be higher when participants saw the corporate advertisement because this enhances brand image and brand image enhances purchase intention.
Figure 1: Hypothesized model
Method
Research design
A 2x2 between subjects experimental design was used for the study (see Table 1). The first factor was the type of advertisement, i.e., either a corporate or product-specific ad. The second factor was brand involvement, where participants were categorized as either low or high in brand involvement 197 people between 18 and 60 years old were recruited to fill in the survey. After cleaning the data, 17 respondents were deleted because they did not answer the questions. The mean age of the participants was 32,76 (SD = 13,16). 66,7% of the
respondents were female, where 32,8% of the respondents were male. 0,6% of the
respondents preferred not to tell their gender. The biggest part of the respondents finished their HBO study (39,4%). 29,4% of the respondents finished a WO study, 18,9% an MBO study and 11,1% stopped studying after high school.
To overcome possible other influences for the found results, the logo of the made-up brand was in both conditions the same. The respondents are recruited through social media, mainly through Facebook. The survey was administered through Qualtrics.
Ad stimuli
The fictious brand chosen for the ads in the experiment was a sports brand, FIT. Participants were not informed that this brand was a fictious one. The reason to choose a fictious brand is to prevent that people already know the brand and have certain associations with it.
The ad consisted out of the brand’s logo and a short slogan (see appendix A). The visual element in both ads was the same to make the ads as consistent as possible. This is done to exclude possible influences of message strategies on the responses of the respondents. The corporate ad contained the following text: “The best sports brand in town. Not only does FIT work very hard to innovate the products, we also protect our employees in and outside the country.” This text focuses on the corporate activities of the organization. The ad does say that this company is a sportswear organization. This is done because that could be an
important aspect when measuring involvement. When leaving this out in the corporate ad and include in the product-specific ad an involvement bias could occur. The product-specific ad contained the following text: “Buy your sportswear at FIT! We have got the best clothes and shoes for you to wear during your exercises!”. This text focuses on the products which the organisation sells.
Instruments
Since the survey consisted out of two forms of advertisements, there were two groups of participants. Both groups were measured on their involvement, brand image and purchase
intention. Thereby, the demographic variables of the participants were measured as well. Those variables were gender, age and education.
Involvement
In this experiment, the level of involvement is measured according to the involvement scale of Zaichkowsky (1985). The level of involvement with the advertisement is measured through five bipolar items: “unimportant – important, uninteresting – interesting, irrelevant –
relevant, useless – useful and unwanted – wanted”. This statement is measured on a scale from 1 to 7.
First of all, the validity of the constructs was measured before the involvement, brand image and purchase intention scales could be formed. This needs to be done to ensure that the statements indeed really measure the construct. First, a factor-analysis was done for the involvement construct. The results show that all five items measure on one construct (Eigen value 2.97). There is a clear kink at the value one in the screeplot. After that, a reliability analysis is done with all the items. A Cronbach’s Alpha of 0,73 is the result. This means quite a reliable scale. Nevertheless, the results show that by removing item three of involvement out of the scale, the Cronbach’s Alpha changes into 0,88. Therefore, this item is left out when the scale INVOLVEMENT was formed.
Brand image
In this experiment, brand image is measured according to the brand image scale of Aaker (1996). Brand image is measured through the following statements: “This brand is different from competing brands, the brand is strong, and I hold favorable attitudes toward this brand”. These statements are measured with answer options ranging from 1 (absolutely disagree) to 7 (absolutely agree).
A factor-analysis for the items which form brand image was done. All three items measured one construct as well (Eigen value 2.33). Again, a kink at the one in the scree plot is visible. A reliability analysis was done with all the items. The result was a Cronbach’s Alpha of 0,76. This means a reliable scale and this value could not become higher by leaving an item out of the scale. The scale BRAND IMAGE was constructed.
Purchase intention
In this experiment, purchase intention is measured according to the purchase intention scale of Chiang and Jang (2007). Purchase intention is measured through the following statements: “The likelihood of buying this brand is very high, the probability that I would consider buying this brand is very high, my willingness to buy from this brand is very low, and I would
purchase a product of this brand.” These statements are measured with anchors ranging from 1 (absolutely disagree) to 7 (absolutely agree).
Lastly, a factor-analysis was done for the items which measure purchase intention. All four items load on one construct (Eigen value 3.05). A kink at the value one in the scree plot is visible. To form this scale, a reliability analysis was done. A Cronbach’s Alpha of 0,89 is the result. The Cronbach’s Alpha could be higher by deleting item three. Nevertheless, this item is used to form the scale because a Cronbach’s Alpha of 0,89 makes a very reliable scale. After this, the scale PI is formed.
Low involvement ad High involvement ad Product specific advertisement Group 1 Group 3
Corporate advertisement Group 2 Group 4 Table 1
Results
Randomization
The two experimental groups did not differ with respect to gender (χ2(2) = 1,03, p = 0,60) and age (χ2(38) = 50,21, p = 0,11). This means there is no significant difference of men and women and age within the two conditions.
Direct effects
First of all, the direct effects of the model are tested with an independent T-test. The first effect to look at is between type of advertisement and brand image. Levene’s test show that equal variances are assumed (F (135) = 0.70, p > 0.05, 95% CI [-0.06;0.72]). There is no significant effect of type of advertisement on brand image (t (135) = 1.68, p > 0.05, 95% CI [-0.06;0.72].
After that, we looked at the effect of type of advertisement on purchase intention. Levene’s test shows that equal variances are assumed (F (129) = 2.04, p > 0.05; 95% CI [-0.18;0.72]). There is no significant effect of type of advertisement on purchase intention (t (129) = 1.19, p > 0.05; 95% CI [-0.18;0.72]).
Moderated-mediation analysis
To test the model, the Macro PROCESS analysis of Hayes (2013) is done. This macro uses an ordinary least squares or linear regression-based path analytical framework to estimate the direct and indirect effects in mediation models. In addition, the macro uses bootstrap methods for inferences regarding indirect effects in moderated mediation models (Hayes, 2013). All analyses used 5,000 bootstrap samples to estimate the bias-corrected bootstrap confidence intervals (BCBCIs).
To test the difference between the two forms of advertisements, the variable is made into a dummy variable. The variable type of advertisement functioned as independent variable (x), purchase intention as dependent variable (y), involvement with the advertisement as moderator (W) and brand image as mediator (m). The results are shown in figure 2.
These results show there is no significant effect of type of advertisement on purchase intention (c’) (b = 0.05, boot SE = 0.14, 95% BCBCI [-0.22;0.33])]) (See table 2). As shown in the model, there is a significant effect of brand image on purchase intention (b = 0.89, boot SE = 0.06, 95% BCBCI [0.77;1.01])]) (See table 2). This result indicates that a more
favourable brand image will result in higher purchase intentions. With a regression coefficient of b = 0.89, it indicates a strong significant effect. Furthermore, the model shows a
moderation effect of involvement with the ad on the relation between type of advertisement and brand image (b = 0.58, boot SE = 0.10, 95% BCBCI [0.38;0.77])]) (See table 2). This result indicates that whenever the involvement with the ad is higher, this strengthens the effect of type of advertisement on brand image. Nevertheless, no significant effect is found between type of advertisement and brand image (b = 0.09, boot SE = 0.48, 95% BCBCI [-0.87;1.04]) (See table 2). The results show that there is no moderated mediation effect (INDEX = -0.09, boot SE = 0.14, 95% BCBCI [0.37;0.17]).
Figure 2: Hypothesized model
Table 2: Path of moderated mediation model
Discussion
This study examined the effects of type of advertisement (corporate vs. product-specific) on purchase intention and if there is a mediating role of brand image and a moderating role of involvement with the advertisement in this relation. The first aim of this study was to see if there is a difference in effect on purchase intention when seeing a corporate advertisement versus seeing a product-specific advertisement. The results show that there is no direct effect of type of advertisement on purchase intention. This means that it does not matter if someone sees a corporate ad or a product-specific ad for their purchase intention. This result is in
contrast with the findings of Kim, Haley & Koo (2009) and Spangardt (2016), who did find a difference between those two types of advertisements on brand attitude and behavioral intentions.
The second aim of the study was to see if there was a mediating role of brand image in the relation between type of advertisement and purchase intention. As shown in the results, it is clear that brand image does have a significant effect on purchase intention. This means that if someone has a brand image is positive, their intention to purchase something of the brand is higher as well. These findings are in line with the findings of several other studies (Grewal, Krishnan, Baker, & Borin, 1998; Wang, & Yang, 2010; Wang & Tsai, 2014; Dehghani, & Tumer, 2015). In those studies was the positive effect of brand image on purchase intention also significant. However, in the case of the study of Wang & Yang (2010) the effect is a moderating effect on the relation between brand credibility and purchase intention. In the case of this study, there is no significant effect of type of advertisement on brand image. This means that brand image does not play a mediating role in this relation.
The third and last aim of the study was to see if there was a moderating role of involvement with the advertisement on the relationship between type of advertisement and brand image. In the results section, it is clear to see that there is a significant effect of involvement with the advertisement on the relationship of type of advertisement on brand image. This would mean that if someone is more involved with the ad, the effect of type of advertisement on brand image would also be higher. However, the effect of type of
advertisement on brand image is not significant. This means that the found significant effect of involvement with the advertisementdoes not really count in this respect. Thus, there is no moderating role of involvement with the ad on the relationship between type of advertisement and brand image. Altogether, we cannot speak of a moderated mediation effect in this study.
In future research, it is important to make clear that the shown advertisements are part of the survey and not a real advertisement. Even though the survey was in Qualtrics, it is clear that a lot of participants stopped the survey when seeing the advertisement. Participants who are not familiar with Qualtrics or filling in a survey might not understand that this
advertisement is already part of the survey. Therefore, in future research there needs to be a page before people see the advertisement. On this page, there needs to be a text like the following: “On the following page you are going to see an advertisement. Be aware that this part of the survey and not a real advertisement. Make sure that you take a good look at the picture and read the text carefully.” It is important that the participants cannot click through directly on the page but after thirty seconds. In this survey, it was possible to click directly through to go to the next page. In future research, it is necessary to add a forced exposure time of at least 30 seconds. In that way, the participants must read the instructions and are better aware of what is expected of them.
Another limitation of this study is that the stimuli was not pretested. It is
recommended to do so in future research because in this survey it was not sure if participants perceived the corporate ad as a corporate ad and the product-specific ad as a product-specific ad. Of course, the formed texts in the ads were based on literature about corporate and product-specific advertisements but this does not guarantee that participants also perceived this that way. The stimuli might have been too subtle or the participants did not understand the stimuli. By pretesting, one can make sure that the manipulations are playing out the way that the researcher intends to. Additionally, a limitation which is in line with previous one is that the survey did not include a clear manipulation check. This means that, in combination with no pre-test, it is not sure if the manipulation really worked as it should be. This can bias the results of the research because it is unclear if the participants perceived the manipulation
as intended. Thus, in future research it is recommended to include a question which can really check if the manipulation worked as intended.
A limitation of this study could be the usage of the variable involvement with the advertisement. This variable is not as much used in other studies as for instance with the product or brand. Although, there are some studies that do use this variable and created a scale for the variable. In this study, the variable is based on those studies. The scale is based on Zaichowsky’s (1986) scale of involvement. This scale includes cognitive as well as affective items. There is not much further research done to this scale. In future research, it might be an idea to distinct affective and cognitive items to form a more valid and reliable scale.
Furthermore, it is hard to generalize the found results in this study because of the group of participants who filled in the survey. The average age of the participants was 32,76 (SD = 13,16). This means that mostly younger people participated in the survey. While this research is about online advertising, it might be interesting to include an older age group in future research. People of 65 years or older lagged at adoption of new technologies compared to younger generations. For that reason, they might know less about the online world
(Vroman, Arthanat, & Lysack, 2014). The main variables in this study might have a different effect in that group.
In future research, it would be beneficial to get to know more about the moderating role of involvement with the advertisement. The results show a significant effect of
involvement with the ad on the relation between type of advertisement and brand image. This is an interesting finding. Nevertheless, the effect between type of advertisement and brand image is not significant. This means that involvement with the advertisement could have a moderating role but does not say anything about the relation between type of advertisement and brand image. Due to the significant results of involvement with the ad, it stays an
important moderator for future research. When studying involvement with ad in future research, there are two options on how to implement this variable. This moderator could stay on the same place in the model as it is in this study. However, the manipulation needs to be stronger to make sure that it works as it is intended to. Furthermore, involvement with the ad can also be studied as a moderator on relations which have to do with advertisement.
The results of the study show that it does not matter if consumers see a corporate or product-specific advertisement. This makes no difference according to the results. However, in future research it could be interesting to look at other factors in advertisements to see if that does make a difference on brand image and purchase intention. Researchers can think about factors such as humor, emotions, endorsers or other strategies. This is an important advice for future research because it is clear that in this study both the non-significant results are in relation with type of advertisement. Thus, by changing that variable, it could be possible to get more relevant results. The result that the type of advertisement in this respect does not matter could also be a beneficial implication for advertisers. This means that instead of thinking about the usage of a corporate or product-specific advertisement, they could better pay more attention to the previously mentioned factors as humor, emotion, endorsers and more in their advertisements. The practical implication for advertisers contains that if they want to enhance the brand image and purchase intention, they can use both corporate and product-specific advertisements and make sure that the ad contains other factors.
An advice based on the found results would be to get people involved with the ad the advertiser shows. Although, the relation between type of advertisement and brand image is not significant, the effect of involvement with the ad is significant. Since involvement with the ad does have an effect, advertisers can benefit from getting their target group as involved as possible with the ad. However, it does not matter if the advertiser shows either a corporate advertisement or product-specific advertisement because the study shows that there is no
effect in that regard. The next question for an advertiser would be how to get people involved. To answer that question more research is necessary.
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Appendices
Appendix A
Stimuli 1 Corporate advertisement
