AN EMPIRICAL INVESTIGATION OF THE ASSOCIATION BETWEEN CREATIVE ADVERTISING AND ADVERTISING EFFECTIVENESS IN PAKISTAN By WISAL AHMAD Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad November, 2010 An Empirical Investigation of the Association between Creative Advertising and Advertising Effectiveness in Pakistan By WISAL AHMAD A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY In Management Sciences To Department of Management Sciences Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad November, 2010 ©Wisal Ahmad, 2010 Creative Advertising and its Effectiveness ii DISSERTATION AND DEFENSE APPROVAL FORM The undersigned certify that they have read the following dissertation, examined the defense, are satisfied with the overall exam performance, and recommend the thesis to the Department of Management Sciences SZABIST for acceptance: Dissertation Title: An Empirical Investigation of the Association between Creative Advertising and Advertising Effectiveness in Pakistan________________________ Submitted By: Wisal Ahmad____ Registration #: 053101 Doctor of Philosophy___________ Management Sciences__________ Prof. Dr. Zahid Mahmood_______ __________________________ Name of Research Supervisor Signature of Research Supervisor Prof. Dr. Shamim A. Sahibzada___ __________________________ Name of Dean (MS) Signature of Dean (MS) Mr. Syed Asad Hussain___ __________________________ Name of Director Signature of Director November, 2010 Creative Advertising and its Effectiveness iii CANDIDATE DECLARATION FORM I Mr. Wisal Ahmad Son of Mr. Muhammad Ishaq, Registration No.053101, a candidate of Doctor of Philosophy (Management Sciences) at the Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Islamabad do hereby declare that the dissertation An Empirical Investigation of the Association between Creative Advertising and Advertising Effectiveness in Pakistan submitted by me in partial fulfillment of PhD degree is my original work, and this work contains no material which has been previously accepted for the award of any degree or qualification in any institution and, to best of my knowledge and belief, contains no material published by another party, except where due reference is made in the text. November, 2010 Date Signature Wisal Ahmad Name Creative Advertising and its Effectiveness iv DEDICATION To My Parents Who gave me a meaningful world and struggled a lot for bringing me to this stage. To My Brothers Who helped me during the toughest moments of my Doctoral Program. To My Wife For her patience and support during this entire period and, To My Sweet Owais, Faiza and Aizaz Whom I could not provide the love and proper care they deserved during this period Creative Advertising and its Effectiveness v ACKNOWLEDGEMENTS First of all, I am indebted to Almighty Allah who always helped me when I faced problems. Certainly, the completion of this thesis is the special blessing of Allah. The completion of this thesis benefited from the time and expert advices of many people. First of all, I express my heartfelt thanks to my Supervisor, Dr. Zahid Mahmood for his all time encouragement, guidance and confidence in me. His support particularly during some of the toughest moments of my dissertation sets an unparallel example as an academician that I can only desire to follow one day. I am cordially indebted to Dr. Kashif-ur-Rehman who indeed laid the foundation stone in my career to grow as a mature researcher. My heartiest gratitude also goes to Dr. Shamim A. Sahibzada and Dr. Rashid Salaria who always strengthened me with their encouragement and expert guidance. I am also heartily thankful to Dr. Usman Ghani and Mr. Muhammad Imran who have consistently supported me during this entire period. I am grateful to Mr. Najmul Hassan, Secretary Pakistan Advertising Association, for providing me access to creative advertisements and all other immediate support. The support of faculty members, administration and staff of SZABIST during the entire period of my Doctoral Program was exemplary. I express my gratitude to all the faculty members and staff of SZABIST particularly Mr. Fahim-ur-Rehman, Academic Support Officer who always felt my needs and made my work so simple and easy. Finally, I pay my heartiest thanks to Dr Sajid Hussain Awan and Dr Bakhtiar who always welcomed me with smiling faces during editing and formatting of the thesis. Creative Advertising and its Effectiveness vi ABSTRACT The importance of creativity in advertising as one of the primary factor for advertising effectiveness has been much advocated by advertising professionals and academicians particularly in a cluttered media. Industry experts argue that advertisements have to be more creative to break through the greater media clutter and develop an impression for the brand. This study examines the potential effectiveness of award- winning television advertisements in Pakistan in both single and three advertising exposures. Both creative and control advertisements were embedded in a television program which were shown to two separate groups of research subjects with single and three advertising exposures respectively. After watching the advertisements, Subjects’ tapped their responses about brand and advertisement recall, attitude and lastly purchase intent. Contrary to expectations, the finding of this study in single exposure does not verify the superior performance of creative advertising in terms of recall, brand and advertisement attitude and purchase intent. However, in three exposures, creative advertisements developed significantly more favorable brand and advertisement attitude and greater unaided brand recall than control advertisements. Creative advertisements developed greater mean purchase intent for the advertised brands than control group of advertisements; however, it just slipped from attaining significance. Being an optimum and more mature response of research participants in three exposures as compared to single exposure, the results of this study in three exposures conclude that creative advertisements are really more effective than conventional advertisements and bestow value to the advertised brands. Creative Advertising and its Effectiveness vii TABLE OF CONTENTS DEDICATION ..................................................................................................................... iv ACKNOWLEDGEMENTS ...................................................................................................v ABSTRACT ......................................................................................................................... vi CHAPTER 1 :INTRODUCTION TO THE FIELD OF ENQUIRY 1.1 Introduction ......................................................................................................................2 1.2 Background of the Study .................................................................................................2 1.2.1 An Over view of Creative Advertising and Advertising Effectiveness ................5 1.2.2 A Comprehensive Approach of Creative Advertising and Advertising Effectiveness ..................................................................................................................8 1.2.3 An Overview of Advertising and Media Situation in Pakistan...........................11 1.3 Research Problem ..........................................................................................................16 1.4 The Purpose of the Study ...............................................................................................17 1.5 Research Questions ........................................................................................................19 1.6 Theoretical Framework of the Study .............................................................................20 1.7 Significance of the Study ...............................................................................................21 1.8 The Structure of the Study .............................................................................................23 CHAPTER 2 :LITERATURE REVIEW 2.1 Introduction ....................................................................................................................25 2.2 The Role of Advertising in Organizational Performance ..............................................25 2.3 Streams of Research on Advertising Effectiveness .......................................................26 2.3.1 Market Response Approach of Advertising Effectiveness .................................26 2.3.2 Behavioral Perspective of Advertising Effectiveness .........................................28 2.3.2.1 Advertising Recall .......................................................................................30 2.3.2.2 Advertising and Brand Attitude ...................................................................33 2.3.2.2(a) Relationship Between Consumers’ Advertisement and Brand Attitude .33 2.4 Creativity and its Different Approaches ........................................................................38 2.4.1 Creativity in Advertising.....................................................................................41 2.4.1.1 Novelty .........................................................................................................43 2.4.1.2 Meaningfulness ............................................................................................44 2.4.1.3 Connectivity .................................................................................................45 2.5 Relationship between Creative Advertising And Advertising Effectiveness ................48 2.5.1 Previous Studies on the Relationship between Creative Advertising and Advertising Effectiveness ............................................................................................48 2.5.2 Components of Creative Advertising and Advertising Effectiveness ................53 2.5.2.1 Effects of Creative Advertising Components on Recall ..............................53 2.5.2.2 Effects of Creative Advertising Components on Consumers’ Attitude .......58 Creative Advertising and its Effectiveness viii 2.5.2.3 Effects of Creative Advertising Components on Consumers’ Purchase Intent ........................................................................................................................61 2.5.2.3 (a) Sources of Consumers’ Brand Knowledge .............................................62 2.5.2.3 (b) Effects of Creative Advertising on Consumers’ Brand Knowledge and Purchase Intention ....................................................................................................64 2.6 Creative Advertising and Advertising Effectiveness- A Broader Perspective .............65 2.6.1 Effects of Brand Familiarity on Viewers’ Memory and Attitude .......................66 2.6.2 Effects of Advertising Exposures on Viewers’ Response ..................................69 2.6.2.1 Contextual View of Advertising Exposures ................................................73 2.6.3 Measuring Creativity in Advertising ..................................................................76 2.7 Chapter Summary ..........................................................................................................79 CHAPTER 3 :THEORETICAL FRAMEWORK OF THE STUDY 3.1 Introduction ....................................................................................................................81 3.2 Theoretical Framework of the Relationship between Creative Advertising and Advertising Effectiveness ....................................................................................................82 3.2.1 Association between Creative Advertising and Recall .......................................84 3.2.2 Association between Creative Advertising and Attitude ....................................93 3.2.2.1 Link between Consumers’ Advertisement and Brand Attitude ...................96 3.2.3 Association between Creative Advertising and Consumers’ Purchase Intent ....98 3.3 Moderating influence of advertising exposures on Advertising viewers’ response ....101 3.3.1 Moderating Effects of Advertising Exposures on Viewers' Assessment of Advertisements ..........................................................................................................102 3.3.2 Contextual View of Advertising Exposure .......................................................105 3.4 Summary ......................................................................................................................109 CHAPTER 4: RESEARCH METHODOLOGY 4.1 Introduction ..................................................................................................................111 4.2 Overview of the Research Objectives ..........................................................................112 4.3 Research Methodology and Justification .....................................................................113 4.3.1 Qualitative Research .........................................................................................114 4.3.2 Quantitative Approach ......................................................................................114 4.4 Operational Definitions of Key Variables ...................................................................118 4.4.1 Operational Definition of Creative Advertising ...............................................119 4.4.2 Operational Definition of Attitude towards the Advertisement ........................121 4.4.3 Operational Definition of Attitude towards the Brand .....................................123 4.4.4 Operational Definition of Recall .......................................................................124 4.4.5 Operational Definition of Purchase Intent ........................................................125 4.5 Sampling Process .........................................................................................................127 4.5.1 Sample Population ............................................................................................127 4.5.2 Unit of Analysis ................................................................................................129 4.5.3 Sampling Method ..............................................................................................129 4.5.4 Sample Size .......................................................................................................130 4.6 Data Collection ............................................................................................................131 4.6.1 Subjects .............................................................................................................132 Creative Advertising and its Effectiveness ix 4.6.2 Experimental Research Design .........................................................................132 4.6.3 Commercials Sample Pool ................................................................................133 4.6.4 Stimuli Development ........................................................................................135 4.6.4.1 Control Variables .......................................................................................136 4.6.4.2 Consensual Assessment of Creativity in Advertising ................................138 4.6.4.3 Adjusting the ‘Order Effects’ of Experimental Advertisements ....................140 4.6.5 Survey Questionnaire ........................................................................................143 4.6.5.1 Pilot Test ....................................................................................................144 4.6.5.2 Reliability of the Measure ..........................................................................146 4.6.6 Data Collection Procedure ................................................................................148 4.6.7 Data Analysis ....................................................................................................151 4.6.7.1 Appropriate Data Analysis Technique .......................................................151 4.6.7.2 Data Analysis Procedure ............................................................................152 4.7 Summary ......................................................................................................................155 CHAPTER 5: RESULTS 5.1 Introduction ..................................................................................................................157 5.2 Sample of the Study .....................................................................................................157 5.3 Research Questions and Associated Hypotheses .........................................................158 5.4 Testing for the Assumptions of Multivariate Analysis of Variance ............................159 5.4.1 Independence of the Experimental Groups .......................................................161 5.4.2 Homogeneity of Variances ...............................................................................161 5.4.3 Normality of Data .............................................................................................162 5.5 Results of Hypotheses Testing .....................................................................................163 5.5.1 Relationship between Creative Advertising and Advertising Effectiveness- Single Advertising Exposure .....................................................................................165 5.5.2. Relationship between Creative Advertising and Advertising ..........................178 Effectiveness: Moderating Influence of Ad-Exposure Levels ...................................178 5.5.3 Summary of Hypotheses Testing ......................................................................197 5.6 Summary ......................................................................................................................202 CHAPTER 6 :DISCUSSION AND CONCLUSION 6.1 Introduction ..................................................................................................................205 6.2 Discussion of Findings .................................................................................................205 6.2.1 Recall Potential of Creative advertisements .....................................................207 6.2.1.1 Creative advertisements and Unaided Recall ............................................208 6.2.1.2 Creative advertisements and Aided Recall ................................................212 6.2.2 Consumers’ Attitude towards Creative Advertisements ...................................214 6.2.3 Creative Advertising and Consumers’ Brand Attitude .....................................217 6.2.4 Creative Advertising and Consumers’ Purchase Intent ....................................220 6.3 Contributions of the Study ...........................................................................................224 6.4 Implications for Practitioners .......................................................................................227 6.5 Limitations and Future Research Directions ................................................................228 6.6 Conclusion ...................................................................................................................231 REFERENCES ..................................................................................................................235
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