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EMAC 2015 Dierences in the Emotional and Rational Appeal of Premium and Standard Brands in the Promotion of Automobiles Christian W. Scheiner, Christian V. Baccarella, Timm Trefzger & Kai-Ingo Voigt EMAC 2015 - Leuven 17.07.15

Differences in the Emotional and Rational Appeal of Premium and Standard Brands in the Promotion of Automobiles Christian W. Scheiner, Christian V. Baccarella, Timm Trefzger & Kai-Ingo

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EMAC 2015

Differences in the Emotional and Rational Appeal of Premium and Standard Brands in

the Promotion of Automobiles

Christian W. Scheiner, Christian V. Baccarella, Timm Trefzger & Kai-Ingo Voigt EMAC 2015 - Leuven

17.07.15

EMAC 2015

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EMAC 2015

EMAC 2015

EMAC 2015

EMAC 2015

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Theoretical Background (I)

•  Car manufacturers face a high pressure to present new product developments to their existing and potential customers (Srinivasan et al., 2009)

•  Cars are technologically advanced products as they incorporate both old and new technologies (Meldrum & Millman, 1991)

•  Among the top 20 of 1000 companies spending most on R&D, five automotive OEMs can be found (Booz & Company, 2007)

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Theoretical Background (II)

•  High-tech markets are dynamic and fast-moving (Lynn et al. 1999), manifested by short product life cycles and rapid technological changes (Beard & Easingwood, 1996; Bridges et al., 1995; Gardner et al., 2000; Ofek & Sarvary, 2003)

•  Those market traits lead to a high competitive pressure to continuously develop new products, which incorporate new technological innovations (Eng & Quaia, 2009; Gupta et al., 1985)

•  This high level of uncertainty in high-technology environments, which is emphasized by Moriarty and Kosnik (1989), induces the challenge about how marketing messages should be communicated

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The optimal application of information in advertisements

(e.g. Baccarella et al., in press; Chen et al., 2007; Singh & Schoenbachler, 2001;

Petty et al., 1983; Yadav et al., 2006)

The use of emotional or rational appeal

(Panda et al., 2013)

Type as brand differentiator

Decisive elements in the marketing communication of high-tech products

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Hypothesis 1a: Premium brands use more emotional cues than standard brands

Hypothesis 1b:   Standard brands use more rational cues than premium brands

Hypothesis 1c:   Print advertisements of premium brands are dominated by emotional cues

Hypothesis 1d:   Advertisements of standards brands contain more rational than emotional cues

Hypothesis 2a:   Premium brands use more emotion types (love, proud, guilt, fear) than standard brands

Hypothesis 2b:   Argument types (refutation, comparison, unique positioning) are used more often by standard brands than premium brands 17.07.15 12

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Sample object Automotive industry

Kategorisierung der Marken Premium: brand BMW & AUDI; standard brand: VW & Toyota

Number of coded print advertisements 492

Time span covered 2006-2011

Sources of print advertisements Online data bases and corporate publications/data bases

Emotional and

rationale elements Based on an approach of Pollay (1983) and Chandy et al. (2001)

Trained master students coded the print advertisements

Pretest

Group discussion

Print advertisements were coded in an online survey

Content Coding Scheme Coding Procedure

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Results (I) – Hypotheses 1a & b Print advertisements of high-tech premium brands contain more emotional cues than print advertisements of high-tech standard brands

–  Print advertisements of premium brands contain in average 4.04 emotional cues –  Print advertisements of standard brands contain in average 1.81 emotional cues –  The χ2 analysis identifies a significant difference between premium and standard brands

(χ2= 88.320, df= 14, p= .000) in the use of emotional cues à Hypothesis 1a can be confirmed

Print advertisements of high-tech standard brands contain more rational cues than advertisements of high-tech premium brands

–  Print advertisements of premium brands contain in average 7.98 rational cues –  Print advertisements of standard brands contain in average 4.20 rational cues –  The χ2 analysis identifies that a significant difference between premium and standard

brands exists (χ2= 88.320, df= 14, p= .000) à Hypothesis 1b cannot be confirmed

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Results (II) – Hypotheses 1c & d Print advertisements of high-tech premium brands and high-tech standard brands are dominated in average by rational cues

–  Rational cues outweigh emotional cues in 116 out of 181 print advertisements of premium brands

à  Hypothesis 1c can be declined –  Rational cues outweigh emotional cues in 168 out of 215 print advertisements of standard brands

à  Hypothesis 1d can be confirmed

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Results (III) – Hypothesis 2a Print advertisements of high-tech premium and standard brands use more emotion types

à Hypothesis 2a can be confirmed

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Results (IV) – Hypothesis 2b Print advertisements of high-tech standard brands use more argument types à Hypothesis 2c can be declined

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Discussion and implications (I)

Print advertisements of premium brands contain significantly more emotional and rational cues than standard brands

–  The findings support the line of argumentation of Albers-Miller and Stafford (1999), Johar and Sirgy (1991), Panda et al. (2013), and Quelch (1987). Albers-Miller and Stafford (1999) who argue that different product categories should initiate different advertising approaches

–  Premium brands try to reduce the price sensitivity of customers by addressing customers with an emotional approach (Panda et al., 2013)

–  Emotionality in print advertisement can be used to strengthen customer loyalty

Premium brands differ from standard brands in the usage of emotion and argument types

–  Premium brands foucs on types with a positive character (love, pride, unique positioning), while standard brands emphasize types with a negative connotation (comparison, fear)

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Discussion and implications (II) Future research is needed to examine whether those findings are consistent over different communication channels

Future studies could examine the effect of specific emotional and rational appeals on the viewer of print advertisement

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