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Testing the elasticity of a brand

The effect of communication strategies on perceived fit, attitude and purchase intention towards a remote brand extension and the moderating role of self-construal

Nathalie Groothuis

Student number: 11392800 Master’s Thesis

Graduate School of Communication

Master’s programme Communication Science Supervisor: B.C. Schouten

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Abstract

Nowadays, consumers are more used to brands extending to product categories other than what a brand is most known for than before. Hence, because most research focused on a market place that is not existent anymore, this study aims to research modern consumers’ responses to specific communication strategies for remote brand extensions by answering the question “How do brand extension communication strategies influence perceived fit and consumer’s attitude and purchase intention towards a remote brand extension, and is this effect moderated by consumer’s self-construal?” The communication strategies that were compared with each other were a brand essence cue, an extension attribute cue and an extension attribute accompanied by a dissonance reducer cue (Young Kim, 2003). Self-construal was included as a possible moderator because more interdependent consumers struggle less with finding relationships (Ahluwalia, 2008), which means that they do not need the help of cues as much as more independent consumers do. The results from the experiment indicate that an extension attribute cue resulted in a higher perceived fit compared to the brand essence cue and the extension attribute cue accompanied by the dissonance reducer. Perceived fit had a positive effect on attitude which in turn positively affected purchase intention. The effect of a communication strategy on perceived fit was moderated by

consumers’ self-construal; more independent consumers have a lower perceived fit than less independent consumers when an extension attribute cue was used. If brand managers aim for a high purchase intention, it is advised that they establish high perceived fit by making use of an extension attribute cue in their communication strategy in order for consumers to purchase their product. It can be concluded that an extension attribute cue is most successful for

consumers who score low on independent self-construal.

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Table of contents

Abstract ... 2

Introduction ... 4

Theoretical framework ... 7

Consumer evaluations of brand extensions ... 7

Perceived fit ... 7

Model of Reputation Building ... 9

Purchase intention... 10 Self-construal ... 11 Methodology ... 12 Brand selection ... 12 Design... 13 Sample ... 13

Pre-test stimulus material ... 14

Procedure ... 15 Variables... 16 Dependent measures ... 16 Control variables... 17 Results ... 18 Randomisation check ... 18 Manipulation check ... 19 Descriptive statistics ... 19 Hypotheses testing... 20 Discussion... 25 Result interpretations... 25

Practical and theoretical implications ... 29

Limitations and suggestions for further research ... 29

References ... 30

Appendix I – Pre-test questionnaire ... 36

Appendix II – Pre-test results ... 40

Appendix III – Main study questionnaire ... 43

Appendix IV – SPSS Output condition differences ... 55

Appendix V – Manipulation check results... 57

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Introduction

The strategy of brand extension can be defined as “the use of an established brand name on a new product to enter a new category” (Dall’Olmo Riley, Singh, & Blankson, 2016, p. 136). A lot of well-known brands have extended their brand over the years. Examples are “Calvin Klein (from jeans to dishes) and Starbucks (from coffee to CDs) (Webster Jr, 2000, p. 19-20). When consumers evaluate a brand extension, they consider the perceived fit between the brand and the extension (Ambler, & Styles, 1997). This degree of fit depends on the

perceived extent to which two product classes complement and substitute each other (Aaker, & Keller, 1990). A brand extension that has a moderate level of difference from the parent brand needs less elaboration from consumers in order to see the link with the parent brand, which results in higher attitudes towards the extension (Ahluwalia, 2008), than a brand extension that is very remote; this needs more elaboration and often results in more negative attitudes.

Perceived fit could be enhanced by using specific communication strategies in advertisements (Aaker, & Keller, 1990). These strategies provide cues “that focus attention on the relevant associations that provide an explanatory link between the parent brand and the extension” (Bridges, Keller, & Sood, 2000, p. 4). Aaker and Keller (1990) compared three different communication strategies to make these associations salient, namely by using a brand essence cue, an extension attribute cue and an attribute dissonance reducer. The brand essence is based on the flagship product of the brand, which is the product that consumers associate the most with the brand such as toothpaste with Colgate (Young Kim, 2003). Because toothpaste is the flagship product of Colgate, resultantly Colgate is associated with teeth, freshness and cleanness. If Colgate extends into aftershave, a brand essence cue reminds the consumer of the link between oral care and shave wear by stating “From the maker of freshness” (Young Kim, 2003). An extension attribute cue, Young Kim (2003)

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states, elaborates on the attributes of the extension because consumers might not see the correspondence with the attributes of the parent brand. As people might think that the symbolic association between toothpaste and aftershave is rather low, an extension attribute cue elaborates on the fact that the aftershave itself “Soothes and refreshes your skin”

referring to the correspondence with the toothpaste attribute “refreshing” (Young Kim, 2003). However, it might still be the case that consumers experience dissonance, for instance

because they are afraid that the aftershave has a toothpaste smell. Dissonance takes place when consumers feel conflicted in their opinions towards the product (Young Kim, 2003). The issue of dissonance can be solved by adding a dissonance reducer that addresses the fact that the aftershave “Soothes and refreshes your skin with elegant fragrance” (Young Kim, 2003).

Because communication message strategies explain the link between parent brand and brand extension, they can positively influence consumers’ attitudes (Young Kim, 2003). In addition, Kim, Han and Lee (2001) found that communication strategies have a positive effect on purchase behaviour because it reduces the doubts that consumers might face. A communication strategy that provides the right information is able to affect consumer’s intention (Coombs, & Holladay, 2008).

Although previous studies have covered the topic of brands extending their market, the marketplace has changed to a place where brand extensions are not as remarkable as they used to be. When research towards brand extensions started, most of the brands focused on one product category, whereas now the biggest brands have extended across several product categories (John, 2016). According to John (2016), the trend of brands extending to different product categories raises the question if past findings about the way that consumers react to extensions that are distant from the parent brand would still hold nowadays. Because

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brand and thus experience less dissonance when they are exposed to a brand extension, using an attribute cue accompanied by a dissonance reducer might have a less positive effect than the attribute cue. Consumers might not need this dissonance reducer because the association between the parent brand and the extension is made clear enough by the extension attribute cue. However, the way these communication strategies affect consumers’ attitude and purchase intention in the current time has not been studied so far. Hence, the first aim of this study was to address this gap by researching the effects of type of communication strategy on consumers’ perceived fit, brand attitudes, and purchase intentions.

Consumers’ perceived fit also depends on a person’s view of him-/herself, also known as their self-construal (Ahluwalia, 2008). A person’s self-construal is defined as a “constellation of thoughts, feelings and actions concerning one’s relationship to others such as the self being distinct from others or connected to others” (Singelis, 1994, p. 581). Consumers who have an independent self-construal focus on separateness and unique aspects of the individual, which prevents them from focusing on similarities, resulting in a lower perceived fit of a brand extension (Ahluwalia, 2008). Furthermore, they have the need to express their unique capacities by direct and non-ambiguous communication strategies (Kim, & Sharkey, 1995). As Kim and Sharkey (1995) found, messages exchanged with consumers with an independent self-construal accordingly should focus on the clarity and directness of the message.

Independent consumers thus need cues that give direct rather than abstract information. Contrary, consumers with an interdependent self-construal are good at relational processing and are better at finding relationships between an extended product and the parent brand, which increases their perceived fit of the extension (Ahluwalia, 2008). Independent consumers thus have more trouble with cues that contain more abstract information than interdependent consumers. However, their perceived fit could be enhanced when the

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independent consumers fail to notice and increase the likelihood of consumers accepting the brand extension. Because interdependent consumers excel at finding relationships without the help of explicit information such as cues, they evaluate extensions differently than

independent consumers (Ahluwalia, 2008). As Ahluwalia (2008) continues, this ability differential is the reason why the effect of communication strategies on perceived fit and extension evaluations differs between independent and interdependent consumers. In sum, this study investigates the following research question: “How do brand extension

communication strategies influence perceived fit and consumer’s attitude and purchase intention towards a remote brand extension, and is this effect moderated by consumer’s self-construal?”

Because previous studies were done in a time when most brands focused on one product category, this study contributes to the knowledge about the effects of different brand

extension communication strategies on consumers in the current time. This study also

provides more information about differences in extension evaluation by consumers that differ in their self-construal. Additionally, this research adds to the understanding of how to

constitute effective brand extension communication strategies, of which the results are advantageous to brand managers since the criteria for an effective brand extension are provided.

Theoretical framework

Consumer evaluations of brand extensions Perceived fit

High perceived fit takes place when consumers are aware of the explanatory links between the parent brand and the brand extension (Bridges, Keller, & Sood, 2000). According to categorization theory, consumers have category representations that they use to place a

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product into a known category in order to be able to make assumptions about it (Loken, Barsalou, & Joiner, 2008). As Loken, Barsalou and Joiner (2008) add, when consumers are confronted with information given in an advertisement, this influences their categorizations and assumptions. Communicating the parent brand’s essence such as “From the maker of freshness” in Colgate’s aftershave extension example highlights explanatory links (Young Kim, 2003). Another way is by stating the extension attributes since consumers might not see the link between the attributes of the parent brand and the attributes of the brand extension (Young Kim, 2003). An extension attribute cue states that the aftershave “Soothes and refreshes your skin” referring to the “refreshing” parent brand attribute. However, even when the extension attributes are communicated, consumers can still experience some dissonance because they fear that Colgate’s aftershave smells like toothpaste. Adding a dissonance reducer addresses this fear by reassuring that the aftershave has a nice smell by stating “Soothes and refreshes your skin with elegant fragrance” (Young Kim, 2003).

A brand essence cue is more abstract than an attribute cue. An attribute cue can be verified whereas a brand essence cue depends on familiarity with the brand (Bridges, Keller, & Sood, 2000). Since it is harder for consumers to find the explanatory link for remote brand extensions, this extension information might need to be emphasized by a more direct link than the brand essence. As Aaker and Keller (1990) state, the product attributes are more specific cues whereas a brand’s quality is a broader cue. The association between the parent brand and the extension needs to be communicated in such a way that the attribute of the brand extension that could possibly be damaging is clearly elaborated on (Aaker, & Keller, 1990). When the damaging attribute is left unexplained, this is emphasized by a lack of fit (Aaker, & Keller, 1990). Hence, this results in the following hypothesis:

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H1A: A communication strategy with an extension attribute cue has a more positive effect on perceived fit than a communication strategy with a brand essence cue for a remote brand

extension.

Bridges, Keller and Sood (2000) emphasize that communication strategies are most effective when all the associations that would otherwise be overlooked are highlighted. This would mean that adding a dissonance reducer to an attribute cue contributes to the

effectiveness of a message. However, as John (2016) pointed out, it is now very common for brands to extend their products into product categories that are more dissimilar from what the brand is known for. Consumers nowadays are more used to brand extensions that are remote from the parent brand and thus might experience less dissonance towards a brand extension. Adding a dissonance reducer to the extension attribute cue might therefore be seen as unnecessary because the extension attribute cue alone might already be enough to establish high perceived fit. Over-communication should be avoided (Young Kim, 2003), which in this case would mean that the attribute cue on itself would be sufficient for consumers. The following sub-question is constructed:

RQ1B: A communication strategy with an extension attribute cue has a more positive effect on perceived fit than a communication strategy with an extension attribute cue accompanied

by a dissonance reducer. Model of Reputation Building

The way a consumer makes a decision about a brand extension is explained in the Model of Reputation Building. According to this model, a credibility transaction takes place whereby the consumer assesses whether the brand extension matches with the quality of the parent brand. If this brand extension matches with the reputation of the parent brand, of which fit is an important aspect, then a positive credibility transaction takes place whereby the reputation of the brand extension is enhanced (Milewicz, & Herbig, 1994). This positive credibility

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develops into positive evaluations regarding the brand extension (Aaker, & Keller, 1990). These extension attitudes are “a predisposition to respond in a favourable or unfavourable manner” (Nan, 2006, p. 598). The evaluation of the brand extension is mediated by perceived fit as it “bridges the gap between brand beliefs and new product assessment” (Milewicz, & Herbig, 1994, p. 52). If the brand extension does not match with the reputation of the parent brand, attitudes towards the brand extension will be negative because of a low perceived fit. When consumers are exposed to a brand extension that is seen as dissimilar from the parent brand category, they can not infer associations from the parent brand category to the

extension which results in a more negative attitude (Loken, Barsalou, & Joiner, 2008). Wang, Wu, Lin and Chen (2017) support this model, as they found that the perceived fit is a positive determinant of the attitude towards the extension. Therefore, the following hypothesis is constructed:

H2: Perceived fit positively mediates the effect of a communication strategy on the attitude towards the brand extension.

Purchase intention

In order to find out if a consumer will carry out the behavior of purchasing the brand extension, the purchase intention is a valid predictor (Ajzen, 1991). Perkins-Munn, Aksoy, Keiningham and Estrin (2005) found that the frequency-weighted average correlation between purchase behaviour and intention is .65. O’Cass and Grace (2004) show that attitudes positively relate to the intention of consumers to purchase a product. As

demonstrated by Dall’Olmo Riley, Pina and Bravo (2015), the attitude towards the brand extension indeed has a positive association with consumer’s likelihood of purchasing the brand extension. MacKenzie and Spreng (1996) also found that when consumers process advertising messages this influences their attitudes towards the product and in turn purchase intention. Therefore, the following hypothesis is proposed:

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H3: The more positive the attitude towards the brand extension, the higher the purchase intention towards the brand extension.

Self-construal

The way consumers look at themselves is indicative of someone’s self-construal as

independent versus interdependent (Agrawal, & Maheswaran, 2005). Even though someone can be both independent and interdependent, most of the time one of those is more accessible (Ahluwalia, 2008). Consumers with an independent self-construal focus on characteristics that make them distinct from the crowd (Agrawal, & Maheswaran, 2005). Differently, consumers with an interdependent self-construal construe themselves with respect to others. Consumers with a high interdependent self-construal have a superior ability to seek out possible interrelationships compared to independent consumers (Ahluwalia, 2008).

For consumers who have a high independent self-construal, communication strategies can be particularly beneficial because they serve the function to bridge their inability to discover relationships between the parent brand and the brand extension (Ahluwalia, 2008). Because of independent consumers’ troubles with finding interrelatedness, these

communication strategies should be unambiguous to make the intentions of the brand most transparent (Kim, & Sharkey, 1995). Since interdependent consumers are more competent in finding relationships, they should be more able to see explanatory links without a cue than independent consumers. Independent consumers base perceived fit on information that is directly given because they are more unlikely to come up with relatedness compared to interdependent consumers (Kim, & John, 2008). When links are explicitly communicated, perceived fit of independent consumers was enhanced whereas the perceived fit of

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H4: The effect of a communication strategy on perceived fit will be moderated by consumers’ construal. The effect will be more positive for consumers with a higher independent

self-construal, compared to consumers with a higher interdependent self-construal. Based upon the aforementioned hypotheses, the conceptual model for this study is proposed (Figure 1).

Figure 1

Conceptual model

Methodology

Brand selection

“Nivea” was chosen since it is the largest skincare brand worldwide and brands in the skincare market become ever more important as the number of men taking care of their skin grew over the years (Superbrands, 2005). Furthermore, “Nivea” was chosen because it is a non-luxury brand because it is easier for luxury brands (Rolex, Mercedes) to extend to products that are dissimilar from the parent brand because consumers do not assess their extensions on product category but mainly on the brand concept of luxury and status (Park, Milberg, & Lawson, 1991). The brand extension in this study is Yoghurt drink because the

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results of the pre-test showed this to be the brand extension with the most perceived distance from “Nivea”, thus the most remote.

Design

An online experimental study was conducted with a 3 (communication cue) x 2 independent/interdependent self-construal) between-subjects design. The independent variable that was manipulated was the communication strategy (3 levels: brand essence cue, extension attribute cue and extension attribute cue with a dissonance reducer). In addition, a control condition was added without communication cue (Table 1). For the communication strategy variable, a between-subjects design was chosen because the stimuli are similar, which might induce the respondent to provide the same responses to both conditions even if this does not indicate their actual beliefs (Keren, 1993).

Table 1

Experimental groups

Condition N

Control (no cue) 37

Brand essence cue 31

Extension attribute cue 35

Extension attribute cue + dissonance reducer

35

Note. N = 138. Sample

Respondents were recruited by convenience sampling. Bryman (2012) states that this sampling technique is a cheap and easy way to gather respondents. However, the results cannot be generalized because it is unknown what population the sample represents (Bryman, 2012). Nonetheless, Bryman (2012) argues, the results could be a beginning point for further research.

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In total 173 participants started the online survey of which 146 participants completed it. 8 respondents did not remember the content of the message correctly and were excluded. Resultantly, the final number of participants was 138. This amount is sufficient because Morgan (2007) argues that when differences between groups are tested a reasonable sample size is 30 respondents per condition since this results in 80% power. In the final sample (74.6% female and 25.4% male), participants’ age ranged from 17 years to 77 years (M = 30.11, SD = 11.99). The majority was highly educated since 38.4% completed a Bachelor’s degree and 23.2% obtained a Master’s degree.

Pre-test stimulus material

The questions for the pre-test were constructed in line with how Young Kim (2003) investigated the brand essence, perceived distance, dissonant attributes and dissonance reducers. A pre-test was held with 15 respondents. The first criterion is that the parent brand needs to be familiar in order to ensure that the respondents have enough brand associations with the parent brand that in turn can be transferred to the brand extension. So first,

familiarity was measured using a 7-point Likert-scale by posing the question “How familiar are you with the brand Nivea?” (1 = very unfamiliar, 7 = very familiar) (Kim, Lavack, & Smith, 2001). The pre-test showed that Nivea is a well-known brand (M = 6.00, SD = 1.13). Next, to create a brand essence cue, respondents were asked to give 5 top-of-mind words associated with the brand (Young Kim, 2003). The most mentioned words were “Fresh” (n = 9) and “Soft” (n = 6); these were used for creating the brand essence cue. Thereafter, the brand extension in the main study must be very remote from the parent brand so respondents were asked to rate the perceived distance between their mentioned associations and four possible brand extensions (Young Kim, 2003). The question “To what extent do you belief the words you mentioned above are different from the following products?” (1 = not

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remote (M = 6.20, SD = 1.47) compared to towels (M = 2.93, SD = 1.40), laundry detergent (M = 3.80, SD = 1.52) and bed sheets (M = 3.67, SD = 1.29). A repeated measures ANOVA with a Greenhouse-Geisser correction determined that the perceived distances differed significantly (F(1.80, 25.19) = 18.74, p < .001, ηp2 = .57) thus the most remote brand

extension was chosen for the main study. Next, concerning the dissonant extension attributes, respondents were asked “Please write down what your negative feelings are towards the aspects of these products if they would be produced by Nivea.” Results show the association between Nivea and the Yoghurt drink was unclear and they were afraid the Yoghurt drink would taste like Nivea’s skincare products. Finally, for creating possible dissonance reducers, respondents were asked ”What kind of information does Nivea needs to communicate about these products in order to reduce those negative feelings?” The most mentioned dissonance reducer was “Tasty” (n = 7). The pretest-questionnaire can be consulted in Appendix I and the pre-test results in Appendix II (Tables 2, 3, 4, 5 and 6).

Procedure

The survey was made with Qualtrics whereby each respondent was randomly assigned to one of the conditions. According to Bryman (2012), a Web Survey saves time and reduces the likelihood of errors in the data. The link to the experiment and the corresponding

questionnaire was posted on Facebook and LinkedIn. No incentive was given to the respondents and they were able to drop out any time during the experiment.

First, the participants were briefed about the fact that the survey belongs to a Master’s Thesis and were made aware of the global subject that was researched. If the respondent agreed to participate, he or she was directed to the survey. The respondent was asked if he or she knows the brand. If the respondent answered “No”, the respondent was excluded from the study. Next, respondents were told that Nivea decided to create a potential brand extension and were assigned to one of the four conditions and exposed to a picture of the brand

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extension along with corresponding text. Thereafter, perceived fit, attitude and purchase intention were measured while the image of the brand extension along with the corresponding message was portrayed above. Afterwards, self-construal was assessed. A manipulation check asked the respondents about the content of the message to assure the correct

communication strategy was identified. Lastly, participants’ gender, age and education were measured as control variables. Thereafter the respondents were thanked for participating and debriefed about the purpose of the experiment. The questionnaire for the main survey can be consulted in Appendix III.

Variables

Dependent measures

Perceived fit. The perceived fit between the brand extension and the parent brand was measured with the perceived fit scale of Martínez and Pina (2009) because of the scale’s proven reliability (Cronbach’s α = .85). An example question is “The Yoghurt drink is similar to Nivea’s products” (1 = strongly disagree, 7 = strongly agree). The reliability of the scale proved to be good (Cronbach’s α = .87, M = 2.20, SD = .35).

Attitude towards extension. To measure the attitude towards the extension, the general extension attitude scale of Riley, Pina and Bravo (2013) was used because of its high reliability (Cronbach’s α = .95). The item “Please rate the statements on the scale to indicate how you feel about the Yoghurt drink” was posed. The extension was rated on a 7-point Likert-scale on favorability (unfavorable – favorable), likability (dislike – like) and appeal (unappealing – appealing). The reliability of this scale was excellent (Cronbach’s α = .94, M = 2.65, SD = .13).

Purchase intention. To measure the purchase intention towards the extension, the purchase intention scale of Riley, Pina and Bravo (2013) was used because of its high reliability (Cronbach’s α = .96). The item “Please rate the statements on the scale to indicate

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your willingness to purchase the Yoghurt drink” was rated on a 7-point Likert-scale on likability (unlikely – likely), consideration (would not consider it – would consider it) and probability (not probable – very probable). The reliability of this scale was excellent (Cronbach’s α = .96, M = 2.47, SD = .23).

Self-construal. For measuring self-construal, 23 items of the self-construal scale of Gudykunst et al. (1994) were used because of its proven reliability (Cronbach’s α = .85 for the independent construal scale and Cronbach’s α = .84 for the interdependent self-construal scale) (Hackman, Ellis, Johnson, & Staley, 1999). An example question to measure independent self-construal is “My personal identity is very important to me”. The reliability of this scale was good (Cronbach’s α = .82, M = 5.62, SD = .29). An example question regarding interdependent self-construal is “I respect decisions made by my group” (1 = strongly disagree, 7 = strongly agree). The reliability of this scale was good (Cronbach’s α = .88, M = 5.08, SD = .37). For the rest of this study, self-construal will be assessed by use of a median split.

Control variables

Age. To measure age, the open question “How old are you?” was posed (M = 30.11, SD = 11.99).

Gender. To measure gender, the question “What is your gender?” was posed, with “Male” and “Female” as answer options.

Education. To measure education, the question “What is the highest level of education you have completed?” was asked with answer options “Less than High School”, “High School”, “Intermediate Vocational Education (MBO)”, “University of Professional Education (HBO)”, “University of Science (WO)” and “Master’s Degree”.

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Knowledge about the existence of the brand. To ensure valid responses,

respondents were asked if they know the brand Nivea by posing “Do you know the brand Nivea?” with answer options “Yes” and “No”.

Manipulation check. To guarantee that the correct content of the cue was

remembered, respondents were asked about the content by posing “What did the message next to the Yoghurt drink say? Please select the answer that you think is correct”. For the brand essence condition, the incorrect answer option was “From the makers of natural products”; for the extension attribute condition and the extension attribute condition accompanied by a dissonance reducer this was “Feel the flavor in your mouth”.

Results

Randomisation check

To check if the characteristics of the respondents were similar per condition in order to be able to compare the groups, Chi-square tests were conducted on the variables gender and education and a one-way ANOVA for the variables age and self-construal. Starting with gender, no significant differences between the conditions were found (X2 = 1.07, p = .78). The Chi-square test for group differences regarding education was also not significant (X2 = 15.36, p = .43) meaning that the conditions did not differ with regard to education. Further, a one-way ANOVA was conducted showing that age did not differ between conditions, F(3, 134) = .10, p = .96. It can be concluded that randomization was successful. Finally regarding self-construal, there were no significant differences found between conditions for

independent self-construal, F(3, 134) = .21, p = .89) and interdependent self-construal, F(3, 134) = .69, p = .56 which means that distribution of self-construal among the groups is equal.

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Manipulation check

To check whether respondents have noticed the correct content of the cue, they were asked to select the answer option that contained the correct cue that was displayed next to the product. In total 8 respondents did not remember the content of the cue correctly and were excluded from the study (Appendix V, Table 9).

Descriptive statistics

Table 10 shows the mean scores and standard deviations on all study variables. Perceived fit is highest in the extension attribute condition and lowest in the control condition. The same goes for the variables attitude and intention. Regarding self-construal, respondents scored in all conditions higher on independence than interdependence, which indicates that the sample is more independent than interdependent.

Table 10

Descriptives per condition

Note. N = 138.

Table 11 shows the correlations between the study variables. As expected, fit is positively and strongly correlated to attitude (r = .65, p < .001) and intention (r = .68, p < .001) and attitude is positively and strongly correlated with intention (r = .83, p < .001).

Total sample (N = 138) Condition Control (N = 37) essence (N = Brand 31) Extension attribute (N = 35) Extension attribute + dissonance reducer (N = 35) Measure M SD M SD M SD M SD M SD Fit 2.20 1.20 1.79 .78 2.19 1.03 2.74 1.69 2.10 .94 Attitude 2.65 1.56 2.33 1.27 2.48 1.06 3.16 2.00 2.61 1.63 Intention 2.47 1.61 2.03 1.40 2.09 1.30 3.07 2.02 2.67 1.41 Self-construal Independent 5.59 .67 5.65 .59 5.59 .72 5.59 .81 5.52 .57 Interdependent 5.13 .71 4.99 1.79 5.17 2.18 5.16 2.74 5.20 2.10

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Independent self-construal has negative correlations that were unexpected, and no significant correlations with interdependent self-construal emerged.

Table 11

Correlation matrix

Measure Fit Attitude Intention Self-construal

Independent Interdependent Fit 1 .65*** .68*** -.33*** .10 Attitude 1 .83*** -.21* .15 Intention 1 -.25** .08 Self-construal Independent 1 -.09 Interdependent 1 Note. N = 138. * p < 0.05. ** p < 0.01. *** p < 0.001. Hypotheses testing

H1A: A communication strategy with an extension attribute cue has a more positive effect on perceived fit than a communication strategy with a brand essence cue. To test this hypothesis, an independent samples t-test was conducted in order to see if the

respondents in the extension attribute condition have a higher perceived fit than the

respondents in the brand essence condition. The Levene’s F-test shows the test is significant F(64, 57.19) = 6.49, p < .05) so no equal variance can be assumed and results should be taken cautiously. It can be concluded that compared to people in the brand essence condition (M = 2.18, SD = 1.03), people in the extension attribute condition (M = 2.74, SD = 1.69) have a (marginally) significantly higher perceived fit, t(57.19) = -1.65, p = .05 (one-tailed), 95% CI[-1.24, .12]. Hence, hypothesis 1A can be cautiously accepted.

RQ1B: A communication strategy with an extension attribute cue has a more positive effect on perceived fit than a communication strategy with an extension attribute cue accompanied by a dissonance reducer. An independent samples t-test was conducted to test if respondents in the extension attribute condition have a higher perceived fit than the respondents in the extension attribute accompanied by a dissonance reducer

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condition. The Levene’s F-test was significant F(68, 53.29) = 8.66, p < .01 meaning no equal variances are assumed. It can be concluded that compared to people in the extension attribute condition accompanied by the dissonance reducer (M = 2.10, SD = .94), people in the

extension attribute condition (M = 2.74, SD = 1.69) have a significantly higher perceived fit, t(53.29) = 1.96, p < .05 (one-tailed), 95% CI[-.02, 1.30]. This means that sub-question 1B can be accepted.

H2: Perceived fit positively mediates the effect of a communication strategy on the attitude towards the brand extension. The proposed mediation model was tested by using PROCESS. Model four was chosen because this model contains one mediator (Hayes, Fry, Gambrill, Moulds, & Young, 1981). Dummy variables of the control and experimental conditions were created and the model contained the conditions as the independent variable, fit as mediator and attitude as dependent variable. The extension attribute condition has a more positive effect on fit compared to the other conditions, but it does not directly affect attitude (Table 12).

Table 12

Slopes for condition predicting fit and attitude

Fit Attitude

Condition b* SE Lower

CI Upper CI b* SE Lower CI Upper CI

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Attribute -.95*** .27 -.50 -.41 -.02 .29 -.60 .56 Dissonance -.31 .27 -.86 .23 -.01 .28 -.57 .55 Essence Control .39 .28 -.17 .95 -.18 .29 -.76 .40 Attribute -.56* .29 -1.13 .00 -.20 .30 -.79 .39 Dissonance .08 .29 -.49 .64 -.19 .29 -.77 .39 Attribute Control .95*** .27 .41 1.50 .02 .29 -.56 .60 Essence .56* .29 -.00 1.13 .20 .30 -.39 .79 Dissonance .64* .28 .09 1.19 .01 .29 -.56 .59 Note. N = 138. * p < 0.05. ** p < 0.01. *** p < 0.001.

Subsequently, it was researched whether communication strategy did not directly affect attitude because of a mediation effect of perceived fit. Table 13 demonstrates that perceived fit indeed positively mediates the effect of the extension attribute condition compared to the control condition, brand essence condition and the extension attribute accompanied by the dissonance reducer condition because the confidence intervals do not cross zero. Concluding, hypothesis 2 can be accepted.

Table 13

Slopes for condition predicting attitude mediated by fit Attitude

Condition b* SE Lower

CI

Upper CI

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Control Essence -.33 .19 -.72 .03 Attribute -.80 .28 -1.36 -.29 Dissonance -.26 .17 -.60 .07 Essence Control .33 .20 -.03 .74 Attribute -.47 .30 -1.09 -.08 Dissonance .07 .21 -.33 .48 Attribute Control .80 .27 .30 1.39 Essence .47 .30 -.08 1.09 Dissonance .54 .28 .02 1.12 Note. N = 138.

H3: The more positive the attitude towards the brand extension, the higher the purchase intention towards the brand extension. To test whether a more positive attitude results in a more positive intention, a linear regression was conducted with attitude as independent variable and intention as dependent variable. The requirement of normally distributed residuals and homoscedasticity has been met. Lastly, the VIF value must not be higher than 1.0 in order to ensure that there is no multicollinearity (Mansfield, & Helms, 1982) and this assumption has been met. The regression model was significant F(1, 136) = 297.25, p < .001 and the strength of this prediction is high (adj. R2 = .68) which means that 68% of the variation in intention can be predicted by participants’ attitude. Attitude, b* = .83, t = 17.24, p < .001, 95% CI[.76, .95] has a significant association with intention (Table 14). For every additional increase of 1.0 in attitude, intention increases with .86. This means that a more positive attitude has a positive effect on intention, thus hypothesis 3 can be accepted.

Table 14

Influence of attitude on intention

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Model 1 Measure b* b SE Constant . .20 .15 Attitude .83*** .86*** .05*** R2 .69 F 297.25*** Adj. R2 .68 Note. N = 138. * p < 0.05. ** p < 0.01. *** p < 0.001.

H4: The effect of a communication strategy on perceived fit will be moderated by consumers’ self-construal. The effect will be more positive for consumers with a higher independent construal, compared to consumers with a higher interdependent self-construal. A one-way between-subjects ANCOVA was run to examine the effect of a

communication strategy on perceived fit moderated by self-construal of which the results can be consulted in Table 15. The Levene’s F-test showed to be significant, F(3, 134) = 4.30, p < .01which means that the assumption of homogeneity of variances has been violated. There was no main effect for condition on fit F(3, 126) = 2.16, p = .10. Interdependent construal did not have a main effect on fit as well F(3, 126) = .11, p = .74. Independent self-construal however did show a significant main effect on perceived fit F(1, 126) = 12.20, p < .01, ηp2 = .09. Moreover, a significant but weak interaction effect was found between

condition and independent self-construal F(3, 126) = 3.50, p < .05, ηp2 = .08 which means that there is no homogeneity of regression slopes thus a moderation exists. A higher independent self-construal results in a lower perceived fit (Appendix VI, Figure 2) and this effect only exists for the attribute condition compared to other conditions. There was no interaction effect found between condition and interdependent self-construal F(3, 126) = .32, p = .81. Because it was hypothesized that the effect of a communication strategy on perceived fit was moderated by consumers’ self-construal and that this effect was more positive for

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consumers with a higher independent self-construal compared to consumers with a higher interdependent self-construal, hypothesis 4 must be rejected.

Table 15

Influence of condition and self-construal on fit Note. N = 138.

To see if attitude mediates the effect of perceived fit on intention, model four of PROCESS was used with fit as independent variable, attitude as mediator and intention as

dependent variable. The effect of fit on intention is mediated by attitude because the confidence intervals do not cross zero (Table 16).

Table 16

Slope for the effect of fit on intention mediated by attitude Intention

Measure b* SE Lower CI Upper CI

Fit .58 .08 .44 .74

Note. N = 138.

Discussion

Result interpretations

The purpose of this study was to explore the effects of different communication strategies on perceived fit, attitude and intention and to examine whether self-construal had a moderating effect on perceived fit. After the results the research question can be answered: “How do

Fit Measure Sum of Squares df Mean Square F p ηp2 Condition 7.45 3 2.48 2.16 .10 .05

Mean independent self-construal 14.05 1 14.05 12.20 .00 .09

Mean interdependent self-construal .13 1 .13 .11 .74 .00

Condition * Mean independent self-construal 12.06 3 4.02 3.49 .02 .08

Condition * Mean interdependent self-construal 1.09 3 .37 .32 .81 .01

Error 145.136 126 1.15

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brand extension communication strategies influence perceived fit and consumer’s attitude and purchase intention towards a remote brand extension, and is this effect moderated by consumer’s self-construal?”

First, it was hypothesized that an extension attribute cue results in a higher perceived fit compared to a brand essence cue because product attributes are more specific than the essence of a product (Aaker, & Keller, 1990). This effect was approaching significance so with caution it can be assumed that this is true. Second, the extension attribute cue also produced a higher perceived fit than the extension attribute cue accompanied by the dissonance reducer.

Each cue condition resulted in a higher perceived fit than the control condition, which is in line with categorization theory stating that cues in an advertisement influence the degree in which the extension is categorised in a product category (Loken, Barsalou, & Joiner, 2008), in our case Nivea’s product category. However, results showed that only the extension attribute cue differed significantly in perceived fit from the control condition. A possible explanation for this might be that even though the pre-test showed that the most prominent brand associations were attribute-based (“Fresh” and “Soft”), respondents might have evaluated the brand extension with more non-attribute-based associations in mind in the brand essence condition. These non-attribute-associations could have something to do with users and usage situations and if these associations are more salient for some respondents then those associations can overshadow the attribute-based relationship that was depicted in the cues (Bridges, Keller, & Sood, 2000) and in turn have damaging effects on perceived fit. That the extension attribute accompanied by the dissonance reducer condition not differed in perceived fit from the control condition could be attributed to the influence of consumers’ mood on their ability to categorise products. A positive mood causes consumers to search for more relations and categorise objects more elaborately (Murray, Sujan, Hirt, & Sujan, 1990).

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The extension attribute accompanied by the dissonance reducer condition contained the most information and because it was assumed that consumers nowadays experience less

dissonance (John, 2016), this could mean that the value of the dissonance reducer was low. When the amount of information becomes greater but is followed by a decrease in perceived value of that information, this has a negative effect due to information overload (Van Zandt, 2004). This is in line with Young Kim (2003) stating that over-communication must be avoided. Because this over-communication could bring respondents in a bad mood, this might have decreased their ability to categorise the brand extension in line with Nivea’s products and in turn have the same perceived fit as the control condition.

The expected model with the double mediation effect proved to be true. This is in line with Dall’Olmo Riley, Pina, and Bravo (2015) who found that perceptions of fit can be established by using cues and fit in turn affect the attitude towards the brand extension (Aaker, & Keller, 1990).This was also expected by the model of Reputation Building, which stated that consumers base their evaluations on the elements of fit between the parent brand and the extension (Milewicz, & Herbig, 1994). In agreement with MacKenzie and Spreng (1996), the way advertisements are processed affects consumers’ attitudes and purchase intention.

It was expected that people who score higher on independent self-construal benefit more from a cue than people who score higher on interdepent self-construal. This assumption was based on Ahluwalia’s findings (2008) that when links are explicitly communicated, the perceived fit of independent consumers was enhanced and the perceived fit of interdependent consumers remained the same because interdependent consumers are able to come up with links between the brand and the brand extension themselves. The results of this study were in accordance with the latter. However, contradictory findings were found in this study

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self-construal have a lower perceived fit than people with a low independent self-self-construal. Hence, as independent self-construal increases, perceived fit decreases. Because the only conditions that differed significantly were the control and the experimental conditions compared to the attribute condition, this effect only holds for the latter communication strategy. One possible explanation for higher independent consumers scoring lower on perceived fit compared to lower independent consumers could be explained by findings of Chen and Marcus (2012) that show that self-construal has an effect on how consumers

present themselves online. University students with a more interdependent self-construal post the least honest information online because they adjust the information they give to the situation of the audience (Chen, & Marcus, 2012). That interdependent consumers conform to their surroundings is in line with the findings of Agrawal and Maheswaran (2005) who state that these consumers construe themselves with respect to other people. If the situation is more individualistic, as it was in this survey because the respondents were asked to answer the questions based on their own opinions without others being able to see their results, more interdependent consumers may answer higher on the independent self-construal scale to match the individualistic situation, which might have resulted in answering in such a way that the score on independent self-construal is higher than it is in reality and resultantly

contradictory results about perceived fit were found.

Concluding, compared to using no cue, a brand essence cue and an extension attribute accompanied by a dissonance reducer, the extension attribute cue results in a higher

perceived fit between the brand extension and the parent brand. Resultantly, consumers’ attitude towards the product is more positive and they are more inclined to purchase the brand extension. This effect is moderated by self-construal, where consumers who score low on independent self-construal have a higher perceived fit when an extension attribute cue is used compared to consumers who score high on independent self-construal.

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Practical and theoretical implications

An extension attribute cue results in the highest fit compared to the other conditions and has a positive effect on attitude and consecutively purchase intention. Brand managers are advised to use an extension attribute cue in their communication strategy for a brand extension because the positive attitude it generates will induce high purchase intention. In a time where targeted advertising and personalization become more and more important (Liu, & Mattila, 2017) the results of this study add useful insights for brand managers regarding individual differences in self-construal and its effect on perceived fit. This study determined consumer markets that have the highest rate of perceived fit and thus have the highest possibility of purchasing the product when an extension attribute cue is used. If a brands’ target group has a low independent self-construal, using a communication strategy where the extension attribute is enhanced is likely to be most successful.

Limitations and suggestions for further research

Various limitations are noted, starting with the sample characteristics. The majority of the sample was female and highly educated, which makes the sample not representative of the general public and limits the generalizability of the results. As Cross and Madson (1997) found, males are more independent whereas females are more interdependent. Furthermore, undergraduate students spend more time on the Internet per day thus have more experience with presenting themselves to others (Chen, & Marcus, 2012), which could mean that they answered differently on the self-construal items compared to lower educated people.

The second limitation refers to the brand that was chosen for this study. Nivea was chosen because it is easier for luxury brands to extend into dissimilar product categories than for non-luxury brands because consumers do not assess these brand extensions on product category as they do with Nivea but mainly on the brand concept itself (Park, Milberg, & Lawson, 1991). Hence, the results of this study are not generalizable to brand extensions of

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luxury brands. Further, Nivea is known for one product category, namely skincare, so no inferences can be drawn to brands with more product categories because achieving fit might be more difficult for these brands as there are more categories to base fit on. More research is thus advised towards the communication strategies that aid the acceptance of brand

extensions of luxury brands and brands with more product categories.

Finally, because of the experimental setting, the respondents were not exposed to possible confounding variables in order to ensure that the effect could be contributed to the communication strategy and were forced to read the message next to the product. This way, respondents pay a particular high amount of attention to the message which is not true to a real life setting in which people are exposed to advertisements in a crowded surrounding (Vargas, Duff, & Faber, 2017). Therefore, this limits the external validity. Future research should perform a study in a more natural environment such as a field experiment.

Nevertheless, this study demonstrates that brand managers should be conscious about the information they provide because as William Bernbach said, “It’s not just what you say that stirs people. It’s the way that you say it.”

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Appendix I – Pre-test questionnaire

Dear participant,

Thank you for participating in this study! In order to finish my Master’s degree in Persuasive Communication at the University of Amsterdam I am conducting this pre-test. For this survey, possible new products of the brand Nivea will be shown to you. Your opinion about this is very important and your answers will be taken in deep consideration. Please read the questions carefully. There are no wrong answers so please answer with honesty. This survey will take about 3 minutes to complete.

Because this research is carried out under the Amsterdam School of Communication Research, it is guaranteed that:

1) The answers are anonymous and your personal information will not be passed on to third parties

2) You can drop out of this study at any time and you can withdraw your answers or data to be used in the research up to 24 hours after submitting the survey. 


3) Participating in the research will not bring you in risk or discomfort and you will not be exposed to any explicitly offensive material. 


4) Five months after the conclusion of the research, I will be able to provide you with a research report that explains the general results of the research. 


I hereby declare that I have been informed in a clear manner about the nature and method of the research, as described in the email invitation for this study. I agree, fully and voluntarily, to participate in this research study. With this, I retain the right to withdraw my consent, without having to give a reason for doing so. I am aware that I may halt my participation in the

experiment at any time. If my research results are used in scientific publications or are made public in another way, this will be done such a way that my anonymity is completely

safeguarded. My personal data will not be passed on to third parties without my express permission. If I wish to receive more information about the research, either now or in future, I can contact nathalie.groothuis@student.uva.nl. Should I have any complaints about this

research, I can contact the designated member of the Ethics Committee representing the ASCoR, at the following address: ASCoR secretariat, Ethics Committee, University of Amsterdam,

Postbus 15793, 1001 NG Amsterdam; 020‐ 525 3680; ascor‐secr‐fmg@uva.nl. I understand the text presented above, and I agree to participate in the research study.

o

Yes

o

No

Skip To: End of Survey If Dear participant, Thank you for participating in this study! In order to finish my Master’s deg... = No

Skip To: Know If Dear participant, Thank you for participating in this study! In order to finish my Master’s deg... = Yes

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[Knowledge about the existence of the brand item]

Do you know the brand 'Nivea'?

o

Yes

o

No

Skip To: End of Survey If Do you know the brand 'Nivea'? = No [Familiarity item]

How familiar are you with the brand 'Nivea'?

1 2 3 4 5 6 7 Very unfamiliar

o

o

o

o

o

o

o

Very familiar

[Brand essence items]

Nivea is a skincare brand. What are the associations you have with Nivea? Please write down the first 5 words you think of when you think of the brand Nivea. To give an example, brand associations of another brand like Coca Cola could be refreshing, sugar, unhealthy, bubbly, quality, party, teens etc.

o

1. ________________________________________________

o

2. ________________________________________________

o

3. ________________________________________________

o

4. ________________________________________________

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[Perceived distance items]

To what extent do you belief the words you mentioned above are different from the following products? Not different (1) 2 3 4 5 6 Very different (7) Towels

o

o

o

o

o

o

o

Laundry detergent

o

o

o

o

o

o

o

Bed sheets

o

o

o

o

o

o

o

Yoghurt drink

o

o

o

o

o

o

o

Page Break

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[Dissonant attribute items]

Please write down in words what your negative feelings are towards the aspects of these products if they would be produced by Nivea:

o

Towels ________________________________________________

o

Laundry detergent ________________________________________________

o

Bed sheets ________________________________________________

o

Yoghurt drink ________________________________________________

[Dissonance reducer items]

Please write down in words what kind of information Nivea needs to communicate about these products in order to reduce those negative feelings:

o

Towels ________________________________________________

o

Laundry detergent ________________________________________________

o

Bed sheets ________________________________________________

o

Yoghurt drink ________________________________________________

You have reached the end of this survey! Thanks again for your time and for completing this pre-test. The aim of this pre-test was to see which associations consumers have with Nivea and which possible brand extension would be the most distant from this brand.

Kind regards, Nathalie Groothuis

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Appendix II – Pre-test results Table 2

Brand associations for Nivea Brand association N

Fresh 9

Soft 6

Blue and white 5

Cream 5 Skin 5 Soap 5 Deodorant 5 Gentle 5 Scent 4 Moisturising 4 Face 4 Clean 4 Women 4 Care 3 Beauty 3 Daily 2 Pure 1 Note. N = 75.

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Table 3

Perceived distance between brand extensions and Nivea

Note. N = 15.

Table 4

Dissonant attributes for Nivea Yoghurt drink

Note. N = 15.

Table 5

Dissonance reducers for Nivea Yoghurt drink

Note. N = 15. Perceived distance Brand extension M SD Towels 2.93 1.39 Laundry detergent 3.80 1.52 Bed sheets 3.67 1.30 Yoghurt drink 6.20 1.47 Dissonant attribute N Bad taste 10

No association with Nivea 4

Unhealthy 1

Dissonance reducer N

Tasty 7

Care about body 3

In cooperation with Nivea 2

100% natural 2

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Table 6

Comparison of perceived distances

Note. N = 15.

* p < 0.05. ** p < 0.01. *** p < 0.001.

Perceived distance

Brand extension Mdifference Lower

CI

Upper CI

Towels Laundry detergent -.87* -1.62 -.12

Bed sheets -.73** -1.27 -.20

Yoghurt drink -3.27*** -4.51 -2.02

Laundry detergent Towels .87* .12 1.72

Bed sheets .13 -.75 1.02

Yoghurt drink -2.40** -3.75 -1.05

Bed sheets Towels .73** .20 1.27

Laundry detergent -.13 -1.02 .75 Yoghurt drink -2.53*** -3.49 -1.58

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Appendix III – Main study questionnaire

Dear participant,

Thank you for participating in this study! In order to finish my Master’s degree in Persuasive Communication at the University of Amsterdam I am conducting this study about advertising effects on consumers. Your opinion about this is very important and your answers will be taken in deep consideration. Please read the questions carefully. There are no wrong answers so please answer with honesty. This survey will take about 5-10 minutes to complete.

Because this research is carried out under the Amsterdam School of Communication Research, it is guaranteed that:

1) The answers are anonymous and your personal information will not be passed on to third parties

2) You can drop out of this study at any time and you can withdraw your answers or data to be used in the research up to 24 hours after submitting the survey. 


3) Participating in the research will not bring you in risk or discomfort and you will not be exposed to any explicitly offensive material. 


4) Five months after the conclusion of the research, I will be able to provide you with a research report that explains the general results of the research. 


I hereby declare that I have been informed in a clear manner about the nature and method of the research, as described in the email invitation for this study. I agree, fully and voluntarily, to participate in this research study. With this, I retain the right to withdraw my consent, without having to give a reason for doing so. I am aware that I may halt my participation in the

experiment at any time. If my research results are used in scientific publications or are made public in another way, this will be done such a way that my anonymity is completely

safeguarded. My personal data will not be passed on to third parties without my express permission. If I wish to receive more information about the research, either now or in future, I can contact nathalie.groothuis@student.uva.nl. Should I have any complaints about this

research, I can contact the designated member of the Ethics Committee representing the ASCoR, at the following address: ASCoR secretariat, Ethics Committee, University of

Amsterdam, Postbus 15793, 1001 NG Amsterdam; 020‐ 525 3680; ascor-secr-fmg@uva.nl.

I understand the text presented above, and I agree to participate in the research study.

o

Yes

o

No

Skip To: Know If Dear participant, Thank you for participating in this study! In order to finish my Master’s deg... = Yes

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