Advertising effectiveness in the South African motor industry
Date
2016-07-18
Authors
Bendixen, Michael Thomas
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Abstract
This research was aimed at examining in detail,
advertising effectiveness in the South African Motor
Industry over the period 1977 to 1985.
In examining previously used methodologies, significant
theoretical deficiencies were found in both the econometric
and time series approaches. The literature is sparse on the
integration of the two approaches and an integrated model
form was developed as the measuring instrument for this
research.
As a consequence of the integrated model form, three
distinct theoretical advertising effects were identified:
viz:
- brand loyalty;
- current effects (simple and compound.);
- carryover effects.
The inherent nature of these effects was related to the
degree of involvement and the affective or cognitive
aspects of the purchase decision. Consequently, the
positioning of products on the FCB grid was used to
hypothesise the type of advertising effect that could be
expected. In addition, the Schultz and Wittink framework
was used to hypothesise market advertising effects.
Application of the integrated model to a sample of motor
industry data clearly indicated that advertising effects in
the motor industry were characterised by:
- dominantly "current" effect forms;
- the presence of competitive effects;
- dominantly primary sales effects.
Further analysis of the data indicated that a strong
negative exponential relationship existed between the
extent. to which a medium was used and the advertising
effectiveness of that medium. This is indirectly supported
by other research findings and by the law of diminishing
returns and led to the following propositions:
(a) The creative devices and content of an
advertisement determine whether or not that
advertisement will be effective but not the
magnitude of the effect.
(b) The magnitude of the effect of an
advertisement is dictated by the extent to which
the medium in which it is placed is used. The
greater the extent of usage of the medium, the
less the effectiveness of that medium.
Feedback, i.e. sales influencing advertising expenditure,
was commonly found in the development of the models.
Description
A thesis submitted to the Faculty of Business Administration, University of the Witwatersrand, Johannesburg, in fulfilment of the requirements for the degree of Doctor of Philosophy. April 1991.