Online Advertising
8 important questions on Online Advertising
What are the aspects of online advertising?
Consumers …
- Have more control over contact with advertiser
- Have more control over content
- Are more anonymous
Also:
- More possibilities for targeting
How is online bad for trust?
- Anonymous
- Reduced social presence/cues
- Asynchrony
How can you increase online trust?
Use professional website and security cues.
Prevention focus:
- Show you’re benevolent (welwillig)
- i.e., that you’re not only out to make profit, but also care for consumer
- Show you’ve integrity
- i.e., that you adhere to moral and legal standards
Promotion focus:
- Show you’re able
- i.e., that you have the skills to do the job (deliver the product)
- Higher grades + faster learning
- Never study anything twice
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Why would you want to increase cognitive load?
- Cognitive load makes people more likely to process automatically/heuristically
- Systematic processing possible if ability and motivation is high (ELM)
- Implication for processing online advertising (e.g., more heuristically with cognitive load)
What are three types of online advertising/influence?
- Explicit online advertising
- More subtle influence (e.g., decision tools like tweakers)
- recommendation agents more influential than comparison matrices
- but higher chance of reactance when people do not like suggestion
- Online word-of-mouth
- Negative WOM more influential than positive WOM
- Negativity bias: greater impact of negative vs positive stimuli and for reviews possibly more diagnostic
- Not only valence, but also emotions matter
What did Kim and Gupta show about WOM?
- Single review:
- Anger: perception of low informative value review and less impact on evaluation than negative information alone (anger attributed to ‘irrational’ reviewer, not to product)
- Happy: no influence
- Multiple reviews: happy increased and angry decreased product evaluations (attributed to product more)
- Follow-up: Lelieveld and Hendriks (2021): effect specific to anger (not negative emotions per se); disgust or disappointment does not have this irrational effect
What are effects of the online world?
Online advertising often targeted and tailored to individual (via targeting cookies and recommendations based on personal history)
- See information based on previous preferences
- Less information outside “comfort zone”
- Concern: less tolerance to opinions and ideas that do not match or own?
What is the Google memory effect?
- Transactive memory: see Google as part of own memory
- Remember information less, if we think we can ‘look it up’
- But remember the location of the information better
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