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Chapter II

In

Research

Submitted by: Submitted to:


Bangi, Sharmaine Ms. Kaye Alejandrino
Magnampo, Beverly
Mercader, Amanda
Merelos, Benjamin Joel
Punzalan, Trisha
Related Literature

Foreign

ISAAC M. DINNER, HARALD J. VAN HEERDE, and SCOTT A. NESLIN

(2014)

The current marketing environment is characterized by a surge in

multichannel shopping and increasing choice of advertising channels. This

situation requires firms to understand how advertising in one channel (e.g.,

online) influences sales in another channel (e.g., offline). This article

studies the presence, magnitude, and carryover of these cross-channel

effects for online advertising (display and search) and traditional media.

The analysis considers how these advertising expenditures translate

directly into sales, as well as indirectly through intermediate search

advertising metrics—namely, impressions and clickthrough rate. For a high-

end clothing and apparel retailer, the authors find that cross effects exist

and are important and that cross-effect elasticities are almost as high as

own-effect elasticities. Online display and, in particular, search advertising

is more effective than traditional advertising. This result is primarily due to

strong cross effects on the offline channel. Return-on-investment

calculations suggest that by ignoring these cross effects, firms substantially


miscalculate the effectiveness of online advertising. Notably, the authors

find that traditional advertising decreases paid search click-through rates,

thus reducing the net cross effect of traditional advertising.

SHELLY RODGERS, ESTHER THORSON, YUN JIN (2008)

From its beginnings as social science theory in the late 19th century

through today, advertising theory has taken two basic forms and

sometimes a blend of the two: The first type is managerial and the second

is psychological. Many of the main advertising theories are managerial,

although admittedly they involve psychological variables. These theories

include the hierarchy models, multi-attribute theory, means-end models,

and many variations and combinations of these. These are “big picture”

approaches in the sense that they provide the manager with basic stages

that a consumer might go through between exposure to an advertisement

and buying the product. These theories include stages that have

psychological names: attention, involvement, memory, attitudes, desire,

intention to purchase, beliefs, and behavior. But the theories do not focus

on understanding micro-level psychological processes.


Samantha L. Thomas, Amy Bestman, Hannah Pitt, Rebecca Cassidy,

Simone McCarthy,

Christian Nyemcsok, Sean Cowlishaw and Mike Daube (2018)

Research has demonstrated that the promotion of gambling, particularly

within sport, may have a significant impact on positively shaping young

people’s attitudes towards gambling. While some governments have

implemented restrictions to limit young people’s exposure to gambling

advertising, few studies have investigated where young people recall

seeing gambling advertising, and whether they perceive that advertising

restrictions have gone far enough in reducing exposure to these

promotions.

The impact of gambling on children and young people (subsequently

referred to as young people) has emerged as an important public health

issue in the last decade. Researchers have demonstrated that

approximately 60–80% of young people engage in formal or informal

gambling prior to the legal age in various jurisdictions and are vulnerable to

harmful and problem gambling. For example, a survey conducted by the

Gambling Commission in the United Kingdom (UK) estimated that around

0.9% of 11- to 15-year-olds were problem gamblers (equating to 31,000


young people) and a further 1.3% were “at-risk” of problem gambling and

currently exhibiting at least some problematic behaviours or harms

(equating to an additional 45,000 young people). Annual estimates of

gambling in Great Britain have indicated large increases in participation

among young people aged 16–24 years, with 38% participating in gambling

in 2016, up to 5% from the previous year. In Finland, a survey of 12- to 15-

year-olds found that 3.0% identified as problem gamblers and a further

4.9% were at risk. In a Swedish longitudinal study, incidence of problem

gambling in 16- to 24-year-olds was over double the rate for adults aged

25–44 years—2.26% compared to 0.81% for adults. In Australia, research

suggests that 1 in 25 young people have experienced a problem with

gambling in the previous year, with one Australian study finding that 16% of

young people under 25 were classified as at-risk, and 5% were classified

as problem gamblers.

Researchers have explored a range of individual, peer, and family factors

that may influence and shape young people’s attitudes and engagement

with gambling. However, it is the alignment of online sports betting

companies with professional sporting teams and codes, the saturation of

advertising on television [and research demonstrating the positive attitudes


of young sports fans towards gambling that have stimulated the most public

debate about the normalization of gambling for young people.

Local

Susan D. Ramirez, Elizabeth A. Amurao, Renato T. Mercado (2014)

Advertising and publicity reach customers and prospects less effectively

than a salesperson’s visit. However, with the exception of e-mail and the

internet, advertising and publicity are one sided forms of communication. A

salesperson can answer a user’s question and clarify benefits, whereas an

advertisement does not allow feedback. Moreover, much advertising and

publicity fall on deaf ears, readers or listeners who are not part of the target

market. Only a small portion of advertising actually reaches the target

audience (Calvin, 2003).

The goal of effective marketing campaign is to surround the customers with

messages. With the right mix, the customer can read the ad in the morning

paper, see the company’s billboard while driving to work and hear radio

spot on the way home. Out of Rev. Integr. Bus. Econ. Res. Vol 3(2) 505
Review Related studies

Foreign

Isaac M. Dinner, Isaac M. Dinner, Harald J. Heerde Van, Scott A. Neslin

(2013)

The current marketing environment is characterized by a surge in

multichannel shopping and increasing choice of advertising channels. This

situation requires firms to understand how advertising in one channel (e.g.,

online) influences sales in another channel (e.g., offline). This article

studies the presence, magnitude, and carryover of these cross-channel

effects for online advertising (display and search) and traditional media.

The analysis considers how these advertising expenditures translate

directly into sales, as well as indirectly through intermediate search

advertising metrics—namely, impressions and click-through rate. For a

high-end clothing and apparel retailer, the authors find that cross effects

exist and are important and that cross-effect elasticities are almost as high

as own-effect elasticities. Online display and, in particular, search

advertising is more effective than traditional advertising. This result is

primarily due to strong cross effects on the offline channel. Return-on-

investment calculations suggest that by ignoring these cross effects, firms


substantially miscalculate the effectiveness of online advertising. Notably,

the authors find that traditional advertising decreases paid search click-

through rates, thus reducing the net cross effect of traditional advertising.

Local

Iris Gonzales (2018)

MANILA, Philippines — Companies are now using both digital and

traditional forms of advertising, according to digital research firm RTL

Research and Tech Lab. Traditional companies in the Philippines such as

food, finance, retail, telecommunications among others, have relied mainly

on traditional methods such as billboards, celebrity endorsers, newspaper

and TV ads to get their brands to reach their target audience. “Today,

however, the move toward digital transformation is already taking place

even if at a relatively slow pace. Realizing that their customers are

becoming tech-savvy and hyper-connected with a large number of the

population active in social media, traditional companies are working double

time to stay relevant and meet the needs that are tailor fit to their
customers’ demands,” RTL said in a report. RTL said companies must

embrace both the traditional and digital methods to remain in the radar

screen of consumers. “The best way to get into the heart of people’s

interest is through social media,” the research firm said. The same digital

research company saw food, household and personal care, retail,

consumer electronics, and beverages as the top five industries that utilize

digital assets. Their presence is felt in various social media platforms such

as Facebook, Twitter, Instagram, and Youtube. As of RTL’s latest reading,

43 brands are already visible in digital, utilizing four digital assets.

Kantar Millward Brown study (2018) adobo magazine

Invest only in channels that have a clear role in the

campaign: Marketers need to choose channels wisely – only using those

which have a clear role in the campaign and in reaching the target

audience. It’s also important to understand what each channel can deliver

in terms of impact and cost. For example, online ads are cost effective in

extending TV reach and building brand metrics from awareness through to

purchase intent. However, consumers’ attitudes are more positive to


traditional media than online advertising and people are more likely to recall

negative online targeting experiences than positive ones.

References:

https://www.taylorfrancis.com/books/e/9781135591663

http://journals.sagepub.com/doi/abs/10.1509/jmr.11.0466

https://harmreductionjournal.biomedcentral.com/articles/10.1186/s12954-

018-0254-6

http://www.aabri.com/manuscripts/142110.pdf

http://adobomagazine.com/philippine-news/media-consumers-philippines-

say-ads-have-become-more-intrusive-according-new-kantar

https://www.philstar.com/business/2018/01/14/1777445/more-firms-using-

digital-advertising

http://journals.sagepub.com/doi/abs/10.1509/jmr.11.0466