When retailers and manufacturers advertise together; examining the effect of co-operative advertising on ad reach and memorability

Cathy Nguyen, Jenni Romaniuk, Justin Cohen and Margaret Faulkner

Journal of Retailing and Consumer Services, 2020, vol. 55, issue C

Abstract: Retailers often feature manufacturer brands in their advertising with the aim to drive sales for those brands and, at the same time, increase in-store traffic. The adoption of such co-operative advertising strategies should reach an expanded audience base comprising of store and brand buyers. Based on empirical evidence in non-retail settings, these buyers are more likely to remember the advertising than non-buyers. This usage-bias effect implies that co-operative advertisements achieve greater cut through than would be the case if either brand advertised alone. Our paper tests this hypothesis in the context of retailer advertisements that feature manufacturer brands in the US, UK and Australia. Our results confirm that a retail brand's shoppers are more likely to recall its advertisements than non-shoppers, extending the usage-bias generalisation to a retailing context. However, while co-operative advertising does expand the buyer-base reach, any uplift in ad-memorability is negated by a reduced ability for buyers of only one of the two brands to recall the advertisement. Information overload on cognitive processing is a possible explanation for this finding, and has implications for extracting value from any investment in co-operative advertising.

Keywords: Co-operative advertising; Retailer promotions; Dual-branding; Brand usage-bias; Advertising recall (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:55:y:2020:i:c:s096969891831172x

DOI: 10.1016/j.jretconser.2020.102080

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