2015
DOI: 10.1002/mde.2778
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Advertising Spending, Mood and Level of Product Information on Quality Perception

Abstract: The aim of this article is to investigate the influence of advertising spending and mood on consumers' perceived quality, considering scenarios with slight and severe information asymmetry as regards a product's attributes. An experimental study conducted with 385 subjects demonstrated that mood moderates the impact of advertising spending on consumers' perceived quality, specifically when these expenses are at and above the market average. Moreover, the impact of mood on perceived quality was moderated by the… Show more

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Cited by 13 publications
(10 citation statements)
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“…This research makes a significant contribution toward extending and applying Signaling Theory in identifying how consumers use product reflections present as visual cues in ads as negative observable signals to judge the unobservable product quality in pre-purchase contexts (Kirmani and Rao, 2000;Pecot et al, 2018;Waites et al, 2020). Further in line with Signaling Theory, it not only confirms the mediating role of product quality uncertainty on the investigated brand outcomes but also identifies brand confidence signaling as a theoretically relevant moderator (Kirmani and Wright, 1989;Koetz et al, 2017).…”
Section: Theoretical Contributionssupporting
confidence: 67%
See 1 more Smart Citation
“…This research makes a significant contribution toward extending and applying Signaling Theory in identifying how consumers use product reflections present as visual cues in ads as negative observable signals to judge the unobservable product quality in pre-purchase contexts (Kirmani and Rao, 2000;Pecot et al, 2018;Waites et al, 2020). Further in line with Signaling Theory, it not only confirms the mediating role of product quality uncertainty on the investigated brand outcomes but also identifies brand confidence signaling as a theoretically relevant moderator (Kirmani and Wright, 1989;Koetz et al, 2017).…”
Section: Theoretical Contributionssupporting
confidence: 67%
“…More specifically, when consumers are informed that a brand's ad campaign costs are higher than the industry average, it increases consumers' product quality perceptions because they attribute the brand's high advertising expenditures to managerial confidence in the advertised product (Kirmani and Wright, 1989). In other words, high ad spending signals to consumers that if the brand is willing to spend a large amount of money on advertising its product, then the product must be of high quality (Kirmani, 1990;Kirmani and Wright, 1989;Koetz et al, 2017;Moorthy and Zhao, 2000). Following Signaling Theory, thus far, it has been proposed that, as a product reflection is processed with a sense of confusion and ambiguity, it will have a negative impact on brand outcomes due to increased product quality uncertainty.…”
Section: The Moderating Effect Of Brand Confidence Signalingmentioning
confidence: 99%
“…Advertising is one of the most important means of appealing to consumers (Sethuraman et al, 2011) and providing product information (Nelson, 1974;Koetz et al, 2017). In marketing practice, there is often uncertainty concerning whether advertising is used most effectively (Aaker and Carman, 1982;Tellis, 2003).…”
Section: Introductionmentioning
confidence: 99%
“…This is mainly because “food consumption is not just a matter for the individual consumer but a social matter too” (Hansen, 2002), and in this perspective, this consumption is a complex field that includes functional and social uncertainty. Customers try to solve this uncertainty by considering a series of indicators such as price (Leavitt, 1954), country of origin (Insch and McBride, 2004), product composition (Olson and Jacoby, 1972), advertising (Koetz et al , 2017), market share (Konuk, 2018), intangible benefits (Cassia et al , 2015) and store experience (Kumar and Polonsky, 2019). These cues affect customer-perceived quality of food.…”
Section: Theoretical Background and Hypothesis Developmentmentioning
confidence: 99%