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An Executive Summary For Managers and Executive
An Executive Summary For Managers and Executive
An Executive Summary For Managers and Executive
Introduction
Infomercials becoming Long regarded as a form of advertising targeting the gullible and naõÈve
increasingly popular (Chapman and Beltramini, 2000), infomercials have recently experienced a
surge in popularity. Not only are infomercials increasingly popular
(Edwards, 2001) but they are also attracting well known brands such as
Apple, Nissan, Mercedes, Microsoft, Land Rover and Cadillac to advertise in
this format (Edwards, 2001; Guilford, 1999; Wellner, 2000). Yet despite this
increase, little research has examined infomercials. While recent research
has examined the infomercial clearance process at television stations (Wicks
and Abernethy, 2001) and the perceptions of the advertising profession
towards infomercials (Chapman and Beltramini, 2000), there is a lack of
research examining infomercial effectiveness. The exception is Singh et al.
(2000) who used an experiment of student subjects to compare different
advertising formats.
Infomercial elements The purpose of this study is to examine what influences perceptions of
examined infomercial advertising effectiveness among a sample of actual
infomercial buyers. To this end, we examine infomercial elements (e.g. the
use of product demonstrations), and consumer characteristics (e.g. levels of
prior interest in the product purchased through an infomercial) across six
product types (e.g. fitness machines and skin care cosmetics). The results
offer insights for marketers and advertising strategists as to what influences
consumers to regard an infomercial as effective. In other words, what
468 JOURNAL OF CONSUMER MARKETING, VOL. 19 NO. 6 2002, pp. 468-480, # MCB UP LIMITED, 0736-3761, DOI 10.1108/07363760210444850
features of an infomercial or a consumer determine whether an infomercial is
viewed as interesting, entertaining, helpful and worth watching. Next,
relevant literature is reviewed. The method and results of a survey of
consumers who have purchased products in response to viewing an
infomercial are then presented. Finally, the implications of the results are
discussed.
Literature review
Value of longer commercial An infomercial is a program-length advertisement spanning anywhere from
formats increasingly 30 minutes to two hours, promoting an organization's product or image
recognized through information or persuasion (Chapman and Beltramini, 2000; Donthu
and Gilliland, 1996). In recent times infomercials have increased both in
numbers and scope as marketers increasingly recognise the value of longer
commercial formats (Chapman and Beltramini, 2000), however the
effectiveness of infomercials has become a major concern. While
practitioner perceptions of infomercials have been well documented
(Beltramini, 1983; Chapman and Beltramini, 2000), there is a notable dearth
of empirical research focused on the elements of the infomercial that actually
persuade the consumer to make a purchase.
Benefits that characterise the effectiveness of direct marketing/direct
response advertising, such as convenience and choice (Evans et al., 2001;
Feinberg and Eastlick, 1997), are often seen as applying to infomercials, but
there is little evidence concerning what elements of infomercials consumers
view as effective. Likewise, although there is research assessing the profile
of the infomercial shopper relative to the non-shopper (Donthu and Gilliland,
1996), there is little evidence regarding the effect of cognitive processes and
previous purchasing behaviour on the infomercial shopper's view of
infomercial effectiveness. The objective of this study is to address these
issues, by studying the effect of consumer characteristics and infomercial
characteristics on consumer perceptions of infomercial effectiveness.
Consumer characteristics
Insights into the decision Understanding if consumer characteristics influence perceptions of
processes infomercial effectiveness has several important benefits for marketers. One
benefit is the ability to target consumer groups more effectively, especially
for marketers looking to enhance production values by increasing efficiency
(Donthu and Gilliland, 1996). Understanding consumer characteristics may
also contribute to the debate over infomercial legitimacy by providing
insights into the decision processes used to purchase from infomercials.
Potential use of Previous studies that have examined consumers who watch or purchase from
infomercials to promote a infomercials have commonly focused on demographics, yet the results in this
wide range of products area have been inconclusive. Donthu and Gilliland (1996) found that
infomercial shoppers were demographically similar to non-shoppers in terms
of age, education, gender, and income. They concluded that this similarity
highlights the potential use of infomercials to promote a wide range of
products to all demographic categories. However, these results have not
found universal support with previous studies of infomercials and home
shopping attesting to differences in age and gender (James and Cunningham,
1987), and age and income (Darian, 1987). Further, these findings have not
been tested on different groups of infomercial buyers, raising the important
question of whether some infomercial buyers are more inclined toward
infomercials than others. For example, it is possible that buyers from
different age, income or gender groups have different purchase motivations,
resulting in different criteria for the assessment of infomercial effectiveness.
Infomercial characteristics
Potential benefits for As a marketing vehicle, infomercials have a number of potential benefits for
advertisers advertisers. These include the ability to present a detailed product story, to
make an emotional connection with the consumer, and to drive sales through
other retail and direct marketing channels (Hawthorne, 1998). Although such
guidance is useful for marketers looking to achieve certain promotional
objectives, how these benefits can be used to maximise their effect on
consumers is questionable.
``Documercial'' format Elliot and Lockard (1996) have noted that the typical infomercial comprises
a program segment and a direct response segment. These infomercials can
have a number of different formats, focusing on product demonstrations,
expert or celebrity testimonials, a ``documercial'' format taking on the
appearance of a documentary or newscast, a talk show format emphasising
entertainment value, or a dramatisation using a slice-of-life format to
demonstrate everyday product use. Elliot and Lockard (1996) found that
infomercials using product demonstrations and testimonials had the greatest
number of information cues, and the talk show and documentary formats the
least. Given the general belief that more information is better, it might be
expected that product demonstrations are positively and significantly related
to perceptions of infomercial effectiveness, but there are no empirical data
available to support this supposition. Likewise, customer testimonials should
be well received by infomercial buyers.
Perceptions of effectiveness Another area that may influence the variables perceived to be effective in
across different products infomercials is the type of product being advertised. For example, Seitz
examined (1998) found that direct response advertisements for perfume and women's
apparel tended to be image-based, whereas direct response advertisements
for cosmetics contained a more balanced mix of image-based and
information-based content. Seitz (1998, p. 273) concluded that ``image based
advertising is often employed when there is little difference in brands'', but
that ``reason comes more into play in the description of product benefits for
cosmetic brands''. Although these findings were developed in the context of
direct response magazine advertisements, they have suggested that
infomercials for products with little perceived difference may focus on
image elements, whereas products with major differences may focus
on emphasising unique benefits through a detailed description and
demonstration of the product. In this study, we examine buyer perceptions of
infomercial advertising effectiveness across six different products allowing
Method
Almost all infomercials Data were collected by means of a survey sent to customers of the New
produced in New Zealand Zealand division of a major international infomercial marketer. In
were for the USA New Zealand, almost all of the infomercials are produced in or for the US
market and are televised with only the price and ordering information
modified. Thus, we surveyed 2,670 customers who had bought one of six
different products across a two-week time-frame. These products were:
(1) a strider (i.e. similar to a skiing machine for aerobic fitness);
(2) a rider (i.e. providing resistance for all major muscle groups while
seated);
(3) an exerciser to reduce the buttock area;
(4) a facial cream program;
(5) a multi-media children's reading program; and
(6) a memory improvement course provided in a set of videotapes.
A total of 60 percent of the infomercials were televised weekdays,
8 a.m.-12 noon; 28 percent midnight-1 a.m.; and 12 percent
Saturday, 8 a.m.-12 noon, which is consistent with world-wide practice.
Response rate exceeded The survey consisted of questions covering perceptions of advertising
recommended guidelines effectiveness, the type of purchase decision, as well as information on
consumer characteristics such as amount of previous exposure to the
infomercial, and how often the respondent watches infomercials.
Respondents received a covering letter, a prize draw incentive, the
questionnaire, and a postage paid reply envelope. An additional survey was
sent approximately two weeks later with an additional prize draw
opportunity to improve response. This resulted in 878 respondents and a
response rate of 32.8 percent, which exceeds recommended guidelines of
30 percent (Cooper and Emory, 1995). Table I presents a summary of sample
characteristics.
Perceptions of advertising effectiveness related to seven items such as ``I
found the infomercial interesting and informative'', and ``The
demonstrations of how the product worked were very helpful in making my
decision to buy''. Respondents were asked to indicate their degree of
agreement with statements related to the above, measured by a five-point
scale with anchors 1 = strongly agree, 5 = strongly disagree. The sections of
the survey relevant to degree of planning consisted of questions relating to
the following: the degree of planning given to the TV purchase; previous
interest in the type of product purchased; previous exposure to TV
advertisements for the product purchased as well as similar products; amount
of thought given to the TV purchase. For example, whether the purchase was
an impulse or planned decision was measured by the item ``To what degree
would you say your decision to purchase was planned in advance?'' (1 = not
at all ± just a spur of the moment impulse, 5 = very much ± had planned to
buy the next time I saw the advertisement). Likewise, predisposition toward
purchasing a product similar to that advertised included questions such as: ``I
had seen TV advertisements for other products like this before'', ``I had
realized I needed a product like this before I saw the TV advertisement, but
had never really looked for one'', and ``I had been looking around for a
product like this, even before I saw the TV advertisement.'' The amount of
thought that went into the purchase decision included statements such as: ``I
thought a lot about the infomercial before I decided to buy'', ``I thought a lot
about similar products I had seen in shops or on TV'', and ``Before I decided
I thought a lot about whether I might benefit from the product.''
Results
Factor analysis performed We first performed factor analysis on the data for measures containing three
on the data or more items. As the items loaded on to single factors, six indices were
created (see Table II) for:
(1) advertising effectiveness;
(2) comments and demonstrations;
Discussion
Our study examines what factors influence perceptions of infomercial
advertising effectiveness among a sample of consumers who have purchased
products in response to infomercials. The findings suggest that infomercials
are more likely to be seen as effective by consumers who value expert
comments, demonstrations, product comparisons, and bonus offers. Age also
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