Traditionally, previous research on advertising and sales promotion have taken place in separate streams, there are often practices where these two main promotion methods are combined. Focusing on coupons embedded in ads as one form of sales promotional advertising(SPAD), this research investigate various effects of SPAD against ordinary advertising(OAD) in a pretest context. Because SPAD has both the characteristics of advertising and sales promotion, it may have distinctive effects on consumers that cannot be explained soley by advertising or sales promotion. The purpose of this research is development of theoretical framework and strategic implication of SPAD.
In Chapter 3, I investigate the differences of cognitive and affective responses between ordinary advertising and coupon embedded advertising. Because the coupon facilitates or inhibits the recall of brand information, the cognitive responses of coupon embedded advertising are different from those of ordinary advdertising. Also the affective responses are different according to attidues toward coupon. The data was collected by experiment consistent to the conventional advertsing pretesting method. A total of 102 housewives participated in the study. The target product and brand are instant coffee and Taister's Choice. The main results are (1) the coupon embedded advertising facilitated the recall of total contents of SPAD and brand information, (2) S-type relationship between coupon value and recall performance. But the affective responses such as attitudes toward brand, advertising, and purchase intention are not statistically significant differences between coupon embedded advertising and ordinary advertising.
The purposes of Chapter 4 are to develop theoretical framework of SPAD on consumer's response and empirically test various causal relationships. By building on the established advertising model(e.g. Dual Mediation Effect Hypothesis), I provide an extended model to examine the incremental effects of sales promotion. The result of empirical test indicate that SPAD has not only the commonly assumed behavioral effects but also cognitive and affective influence. Another main result is that SPAD has interaction effects of SP part and AD part in SPAD. These results may help explain some unsolved issues in promotion research of incremental purchase of brands by nonredeemers of coupons. And the results of Chapter 4 suggest the need of strategic framework in planning SPAD.
In Chapter 5, I suggest a contingency framework which recommends the integration of sales promotion and advertising to achieve various complementary communication objectives. The framework defines four distinctive types of SPAD according to the brand loyalty dimension of the main target consumers and their intented response dimensions, i.e. Accelerating, Reinforcing, Informing/Building, and Brand Switching SPAD. I expect this classification scheme can be a useful framework for positioning SPAD for various marketing communication situations. In last, I suggest five decision steps besides setting objectives. The main steps are (1) decision of ad and sp intensity, (2) type of advertising, (3) type of sales promotion, (4) decision of media, (5) decision of the value of sales promotion.
