This research investigates the impact of three advertising aspects: perceived advertising spending, individuals' attitudes toward advertisements and ad appeal strategy (informative vs. transformative) on the four dimensions of consumer-based brand equity: brand awareness, brand associations, perceived quality and brand loyalty, within low involvement product categories. Design/methodology/approach
This research used a confirmatory quantitative approach based on a consumer survey with 951 respondents. The statistical methodology used in this study is covariance based Structural Equation Modeling.Findings
This research has four key findings. The first is that perceived advertising spending negatively impacts perceived quality and brand associations. Secondly, positive attitudes towards ads reflect positively on all brand equity dimensions. Third, informative ad appeals are effective in inducing positive quality perceptions, increasing consumer’s trust in a company, and strengthening brand loyalty. On the contrary, transformational ad appeals are effective in increasing brand awareness, have insignificant effect on brand personality, and have negative effects on perceived quality, company associations and brand loyalty. Fourth, the product type moderates the impact of ad appeal on brand awareness such that transformative ad appeals are more effective for hedonic or food products, informative ad appeals are better for utilitarian products, while both appeal tad appeal types work well in non-food products.Research limitations
The main limitations of this study included the use of only four product segments to represent the whole low involvement product category, collection of data through a crowdsourcing research site, and the cultural bias coming from conducting the research in the UK. Practical implications
Building on the findings of this study, marketing professionals operating in low involvement product categories have to specifically focus on informational ad appeals in their brand communication across all the stages of their products’ life cycle. These cognitive based appeals increase consumers’ quality perceptions of the brands, solidifies consumers’ trust in the companies, and strengthen brand loyalty. Besides, as consumers in general are requiring more value for their money, informational ad appeals are more effective in communicating clear quality and value cues of brands, giving them better chances to win in the market place.
This study clarifies the mechanism through which three advertising aspects directly and indirectly affect the brand equity dimensions of low involvement products. Specifically, this study identifies the impact of informational and transformational ad appeals on the equity of low involvement brands. It also determines the moderating role of product category in the relationship between the ad appeal type and brand awareness.Keywords
Advertising effectiveness, Ad Appeal, Ad Attitudes, Advertising Spending, Brand Equity, Low Involvement Products.