Abstract
The paper investigates the effects that consumer-perceived sender expense and effort might have on brand perceptions. More specifically, it extends the marketing signal literature to advertising by including both sender expense and effort, and by including both positive and negative effects. A quantitative analysis of 4,000 consumers’ perceptions of creativity award winning, effectiveness award winning and non-award winning advertisements finds that advertisements with higher-than-average perceived expense and effort have positive impacts on brand attitudes, brand interest and word-of-mouth (WOM), while advertisements with lower-than-average perceived expense have corresponding negative impacts.
Additional information
Notes on contributors
Erik Modig
Erik Modig is an Assistant Professor of Marketing at the Stockholm School of Economics. His research focuses on the consumer psychology behind advertising creativity and effectiveness.
Micael Dahlén
Micael Dahlen is a Professor of Marketing at the Stockholm School of Economics. His research aims at merging creativity, business and consumer value.
Jonas Colliander
Jonas Colliander is an Assistant Professor of Marketing at the Stockholm School of Economics. His research revolves around social media and consumer behaviour.