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ijcrb.webs.com DECEMBER 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 8 Impact of Consumer Involvement on Advertising Skepticism A Framework to Reduce Advertising Skepticism Syeda Nazish Zehra Rizvi (Corresponding author) Lecturer IBIT, University of the Punjab Lahore Manahil Sami Shamaila Gull Lecturer IBIT, University of the Punjab Lahore ABSTRACT The research focuses on an ever growing concern for marketers in the form of consumer skepticism towards advertising (CSA). This variable was studied along with consumer involvement, analyzing the fact that whether the level of involvement has any relation with the level of skepticism and finally three of marketing‟s best known and diverse tools, i.e. CSR, source credibility, and Opinion leaders were analyzed as means to reduce skepticism. The analysis was carried out using SPSS on questions comprising of 5 point likert scales. Keywords: Advertising Skepticism,Consumer Skepticism towards Advertising, CSA, Consumer Involvement, CI, Source credibility, Corporate social responsibility, CSR, Opinion seeking behavior. INTRODUCTION The purpose of the study is to evaluate and understand the relationship between consumer involvement (CI) and consumer skepticism towards advertising (CSA). The concept of CSA is defined as the tendency of consumers to have a disbelieving attitude towards the claims made by advertisers/marketers. CSA has emerged as an important phenomenon having significant effects on consumer behavior. It has said to be gained through intergenerational variables to some extent, whereas market knowledge, individual personality characteristics and experience are the factors that are closely connected to CSA.Consumer involvement has various definition attached to it as it is a diverse concept related to consumer behavior. This research is being designed to study whether consumer involvement has any effect on CSA, Here the concept of levels of involvement would be considered too. The study is planned in a way that discovers their relationship and trends how they correlate, here relationship between the level of involvement and ad skepticism would be considered. It further will discover the varying CSA among different demographics. And then the study would be considering the impact of following three variables on CSA to investigate which of them could help in reducing CSA: Source credibility Corporate social responsibility Opinion seeking behavior LITERATURE REVIEW Ad Skepticism There has been tremendous research on the market belief called consumer skepticism towards advertising (CSA). It has been defined as: “A tendency to disbelieve advertising claims” by Obermiller and Spangenberg (1998). It has been said in the literature that promoters use the emotional plea in the ads to evade the consumer‟s disbelief for the informational content in the advertisements (Friestad and Wright 1994). A study concluded that individuals who are skeptical about the ad claims prefer verifying them by asking a friend or using the product, instead of considering consumer report and related magazines. It COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 465 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2012 VOL 4, NO 8 further provided that skepticism might not consider as much of the usage of magazine analysis of product but it might increase with involvement and interest for product. “The results did not support the hypothesis that skeptics have a preference for any type of ad appeal (items 10-12). These results support the notion that SKEP is not a measure of consumer cynicism. It has been suggested that cynical consumers may be especially vigilant against overtly manipulative attempts (Campbell 1995; Kanter and Wortzel 1985). High skeptics showed no disinclination toward celebrity spokespeople, info-mercial structure, or “soft sell” ads (emphasis on pictures, music, or humor).” (Carl Obermiller, Eric Spangenberg, and Douglas L. MacLachian, fall 2005). Individuals who are advertising skeptics were defined in a way that they don‟t believe advertising and don‟t consider them significant enough to process. “Skeptics are not immune to advertising. In addition to an openness to emotional appeals , studies have provided limited evidence that high skeptics respond well to products for which they are highly involved” (Carl Obermiller, Eric Spangenberg , and Douglas L. MacLachian, fall 2005). Literature says that the SEC framework suggested that consumers have more skeptical attitude towards the credence attributes in comparison to search attributes which can be verified unlike the credence attributes. There also exists differential skepticism towards experience claims of high and low priced products. (Gary t. Ford,Darlene b. Smith and john l. Swasy, march 1990). According to Ford, Smith, and Swasy (1990) the perceived value of the information, the appropriateness of advertising for specific audiences, the motives of the advertisers, and the truth of claims may be contributing factors to consumer skepticism. Consumer involvement Consumer involvement is defined as a variable “With a high predictive value for purchase behavior” (Evrard and Aurier, 1996). Quester and Lim (2003) divides involvement into product involvement and purchase involvement, where product involvement is establish to be the more stable (enduring) and consumer-based notion. Corporate Social Responsibility Responsibility refers to fair business practices based on values like social, ethical, environmental and respect for people. The concept of CSR was initially stated by Drucker (1974) concluding that organizations must spend a portion of their profits in social activities to benefit community. “CSR has also termed as “corporate citizenship” which means that a company should be a good neighbor in its host community” (U.S. Agency for international development, catalyst consortium, 2002). It has been discussed that companies in order to differentiate themselves in the market are using the strategies to promote their CSR activities or they are doing cause-related marketing. Similarly firms are through various promotional tools tries to communicate that how they are associated to welfare. Here CSA is involved too making the consumer doubtful about what the firm is claiming. It has been discussed that in addition to be truthful in CSR related claims the firms must have an understanding about the extent of consumer‟s learning about the CSR, and their degree of skepticism. (Peggy Simcic Brønn, Associate Professor and Albana Belliu Vrioni, MSc Student, May 2001). Opinion Seeking Behavior Opinion seeking has been considered as part of purchase decision making. Consumers seek opinions when they are willing to make more satisfying purchase decisions. (Punj and Staelin 1983) Source Credibility Source credibility is considered as a multi - faceted concept, and its two dimensions are perceived expertise and perceived trustworthiness (Hoveland et al., 1953; McGuire, 1987, Ohnian, 1990).Both these dimensions are further defined as: Perceived expertise is described as the extent to which a source is considered to be proficient of making valid assertions. Perceived trustworthiness is defined COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 466 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2012 VOL 4, NO 8 as the level of confidence exists towards the source being motivated to transfer valid assertions. (Hoveland et al., 1953; McCraken, 1989) The literature further revealed that irrespective of the prominence on any of the two dimensions it has been observed that highly credible sources brings greater attitude change in comparison to low credible sources(Mills and Jellison, 1967; Rhine and Severance, 1970). METHODOLOGY Probability sampling has been used for selecting a total of 300 individuals for the survey. To analyze and evaluate the survey findings a statistical tool SPSS 17 will be used, to portray the findings and the trends appropriately. Scales considered for measuring variables Skep-scale is to be considered for measuring the degree of ad skepticism in a consumer. The Cronbach‟s coefficient of the scale is 0.85 CIP-scale is used to measure the level of consumer involvement. The Cronbach‟s coefficient of the scale is 0.702 To measure the opinion seeking behavior of a consumer a Reynolds and Darden 1971 3 item scale would be considered. The Cronbach‟s coefficient of the scale is 0.785 Source credibility would be measured by the scale known as Harmon and Coney 1982. The Cronbach‟s coefficient of the scale is 0.742 Corporate social responsibility towards the community would be measured by the questionnaire of Maignan& Ferrell model. A five-point likert scale was used. The Cronbach‟s coefficient of the scale is 0.822. COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 467 ijcrb.webs.com DECEMBER 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 8 RESULTS AND ANALYSIS 1. Consumer Involvement and Consumer Skepticism towards Advertising Pearson correlation shows a value of 0.282 depicting the strength of the relationship which is weak and the value of significance is less than 0.05 so H° can be rejected with 95% level of confidence. So marketers/advertisers should keep in mind that involvement can bring up high level of skepticism. CSA 1 CSA Pearson Correlation Sig. (2-tailed) N 300 CI Pearson Correlation .282** Sig. (2-tailed) .000 N 300 **. Correlation is significant at the 0.01 level (2-tailed). CI .282** .000 300 1 300 After analyzing the relationship between the two variables we move on to analyzing the relationship between three marketing tools and ad skepticism, in order to determine which one of them would be the best in reducing skepticism among consumers. 2. Consumer skepticism towards advertisements and Opinion seeking behavior The two variables depict a weak yet significant relationship with each other therefore leading to the finding that various tools of marketing such as opinion leaders, brand ambassadors, word of mouth advertising can be used to reduce ad skepticism. CSA Pearson Correlation 1 CSA Opinion behavior Sig. (2-tailed) N 300 seeking Pearson Correlation .178** Sig. (2-tailed) N .002 300 Opinion seeking behavior .178** .002 300 1 300 3. Consumer skepticism towards advertisements and Source credibility The following table depicts opinion leaders as a weak but significant tool for impacting ad skepticism. CSA 1 Source credibility .165** CSA Pearson Correlation Source credibility Sig. (2-tailed) N Pearson Correlation 300 .165** .004 300 1 Sig. (2-tailed) N .004 300 300 COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 468 ijcrb.webs.com DECEMBER 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS 4. VOL 4, NO 8 Consumer skepticism towards advertisements and corporate social responsibility: It can be stated with 99% confidence that CSR is a moderately strong tool for reducing skepticism towards advertising in consumers. CSA 1 CSR .238** Sig. (2-tailed) N Pearson Correlation 300 .238** .000 300 1 Sig. (2-tailed) N .000 300 300 CSA Pearson Correlation CSR Regression Analysis The following tables depict CSA‟s regression analysis with all the other variables. 5. CI and CSA The analysis reveals the following regression equation: Consumer skepticism towards advertisement= Slope * Consumer involvement + Intercept = 0.248 * Consumer involvement + 2.077 Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 2.077 .152 13.705 .000 CI .248 .049 .282 5.083 .000 a. Dependent Variable: CSA 6. CSA and OSB Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta 1 (Constant) 2.461 .122 Opinion seeking behavior .135 .043 .178 a. Dependent Variable: CSA COPY RIGHT © 2012 Institute of Interdisciplinary Business Research t 20.159 3.123 Sig. .000 .002 469 ijcrb.webs.com DECEMBER 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 8 7. CSA and CSR Model 1 (Constant) Unstandardized Coefficients B Std. Error 2.328 .123 CSR .182 a. Dependent Variable: CSA .043 Standardized Coefficients Beta .238 t 18.942 Sig. .000 4.233 .000 8. CSA and Source Credibility Standardized Unstandardized Coefficients Coefficients B Std. Error Beta 2.461 .131 .159 .055 .165 Model 1 (Constant) Source credibility a. Dependent Variable: CSA t 18.785 2.894 Sig. .000 .004 The results of statistical tests and the literature review helps concluding that Consumer skepticism towards advertising is a variable that is of tremendous importance to marketers. And consumer involvement is a factor that it moderates the influence of CSA. As the involvement increases a consumer tends to be more skeptic, but the increase is not large. When involvement is really high consumers prefer searching and verifying the claims instead of being skeptical about them. So the advertisers/marketers should get the understanding from this that CSA can be reduced when consumers find it easy to verify the claims. And most importantly when the claims are verified, it develops a sense of trust in the consumer‟s mind for the brand/company/advertiser. Marketers can get the understanding from results that promotion of corporate social responsibility is of considerable importance for the consumers. And it might help reducing CSA to a considerable degree, depending upon the fact that it is considered truthful by the target audience. Consumer encourages the fact that companies should be associated with welfare activities. The insight for marketers is that the CSR campaigns must be promoting the real efforts conducted instead of fake claims regarding welfare. And if presented with vague CSR campaigns this will back fire and will company will suffer. Opinion seeking seems to have an impact more than the variable source credibility. So this provides an insight that marketers could get help from the opinion leaders in reducing the degree of skepticism. Consumers who have a positive attitude towards opinion seeking are the one who are more skeptical about the ad claims. The insight here for marketers is that using appropriate opinion leaders would have an influence on the consumers and it will moderate the effect of skepticism. 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