Content area
Full Text
In designing print ads, one of the decisions the advertiser must make is which color(s) to use as executional cues in the ad. Typically, color decisions are based on intuition and anecdotal
evidence. To provide guidelines for these decisions, this research proposes and tests a conceptual framework linking the hue, chroma, and value of the color(s) in an ad to consumers' feelings and attitudes. In an experimental study, the three dimensions of color used in an ad are manipulated using a between-subjects design. The results support the hypotheses that ads containing colors with a higher level of value lead to greater liking for the ad, and this effect is mediated by the greater feelings of relaxation elicited by the higher value color. Feelings play an equally important role in the effect of chroma. Consistent with the hypotheses, higher levels of chroma elicit greater feelings of excitement, which in turn increase ad likeability. A follow-up study found that although managers often select higher value and higher chroma colors, in a large number of cases they do not. The findings of both studies are integrated in our discussion of the importance of value and chroma in increasing the range of options available to a manager faced with the selection of colors in an ad. (Marketing; Advertising and Media; Buyer Behavior)
Most franchisors charge an advertising fee in addition to the better known royalty and franchise fee. We study the role of the advertising fee in improving channel coordination.
We begin our analysis with a simple case of one franchisor dealing with two identical franchisees and find that the advertising fee allows the franchisor to commit to a specific level of advertising spending at the time of contract acceptance. We also find that the lump-sum advertising fee is better than the sales-based advertising fee. These results are intriguing because most franchisors use the sales-based advertising fee. We show that when franchisees' markets differ in how advertising affects sales, the franchisor may prefer the sales-based advertising fee. There are two reasons for the higher profitability of the sales-based advertising fee. First, the sales-based advertising fee conditions the franchisor's advertising decision on the franchisees` price and service decisions, and induces them to make better price and...