Short answer
Invest in advertising and non-monetary promotions to build trust and perceived value, as these are more effective drivers of brand credibility and customer adoption than monetary discounts alone.
- Field
- Innovation & Markets
- Source
- IOSR Journal of Business and Management (2012)
- Method
- Quantitative research using Structural Equation Modelling (SEM).
- Sample
- 177 participants
- Evidence
- Strong effect
Strategic use of advertising and non-monetary promotional tactics can enhance a brand's perceived credibility, thereby increasing customer intention to use a product or service. This innovation & markets research insight is drawn from a 2012 study published in IOSR Journal of Business and Management. Using Quantitative research using structural equation modelling (sem). with 177 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Invest in advertising and non-monetary promotions to build trust and perceived value, as these are more effective drivers of brand credibility and customer adoption than monetary discounts alone.
Advertising and non-monetary promotions significantly boost brand credibility, influencing customer adoption.
Strategic use of advertising and non-monetary promotional tactics can enhance a brand's perceived credibility, thereby increasing customer intention to use a product or service.
IOSR Journal of Business and Management · 2012
Key Findings
- 01Advertising has a positive and significant relationship with brand credibility.
- 02Non-monetary promotions have a positive and significant relationship with brand credibility.
- 03Monetary promotions did not show a significant relationship with brand credibility.
- 04Brand credibility is positively related to perceived quality and information costs saved.
- 05Brand credibility is negatively related to perceived risk.
Application
Design takeaway
Invest in advertising and non-monetary promotions to build trust and perceived value, as these are more effective drivers of brand credibility and customer adoption than monetary discounts alone.
How to apply
When developing a new product or service, allocate marketing resources towards impactful advertising campaigns and consider non-monetary incentives like loyalty programs or enhanced features to build initial brand trust and encourage adoption.
Project actions
- 01When researching a product, consider how its marketing and promotional strategies contribute to its perceived trustworthiness.
- 02Analyze competitor advertising and promotional tactics to understand how they are building brand credibility in the market.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust statistical method (SEM) for analyzing complex relationships.
- +Focuses on a critical aspect of marketing: brand credibility and its drivers.
Limitations
The sample size might be small for broader generalizations, and the study focuses on a specific industry, potentially limiting applicability to diverse markets.
Reliability & validity
The use of SEM suggests an attempt to establish construct validity by modeling latent variables. Reliability would depend on the psychometric properties of the scales used to measure the constructs.
Think critically
To what extent do cultural differences or the specific nature of the product/service influence the relative impact of monetary versus non-monetary promotions on brand credibility?
Design Principles
"Brand credibility is a key driver of customer adoption, and it can be effectively cultivated through consistent advertising and value-added non-monetary promotions."
Understanding how marketing communications impact brand perception is crucial for developing effective market entry and growth strategies. This research highlights that not all promotional efforts are equal in building trust, guiding investment in specific marketing activities.
What This Means for Your Design
How you advertise and offer freebies or extra value can make customers trust your brand more, which makes them more likely to want to use your product or service. Just giving discounts doesn't build trust as much.
How to use in your project
- 1.Use this research to justify the choice of marketing and promotional strategies in your design project's development and launch plan.
- 2.Cite this study when discussing how brand credibility influences user adoption and market penetration.
Add to My Project
Quick Cite
Paragraph starter
The effectiveness of marketing communications in building brand credibility is a critical factor influencing customer adoption. Research indicates that advertising and non-monetary promotions significantly enhance brand credibility, leading to increased perceived quality, reduced perceived risk, and lower information costs, thereby fostering higher usage intention. This suggests that strategic investment in these promotional avenues can be more impactful for establishing trust and driving market acceptance than solely relying on monetary incentives.
Source
IOSR Journal of Business and Management
The role of advertising and promotions in enhancing brand credibility and customers’ using intention
journal · 2012
View sourceQuestions About This Research
- What does the research say about advertising and non-monetary promotions significantly boost brand credibility, influencing customer adoption?
- Invest in advertising and non-monetary promotions to build trust and perceived value, as these are more effective drivers of brand credibility and customer adoption than monetary discounts alone. Evidence: IOSR Journal of Business and Management (2012).
- Why does "Advertising and non-monetary promotions significantly boost brand credibility, influencing customer adoption." matter for design?
- Understanding how marketing communications impact brand perception is crucial for developing effective market entry and growth strategies. This research highlights that not all promotional efforts are equal in building trust, guiding investment in specific marketing activities.
- How can designers apply this research?
- Invest in advertising and non-monetary promotions to build trust and perceived value, as these are more effective drivers of brand credibility and customer adoption than monetary discounts alone.
- What were the main findings?
- Advertising has a positive and significant relationship with brand credibility.. Non-monetary promotions have a positive and significant relationship with brand credibility.. Monetary promotions did not show a significant relationship with brand credibility.. Brand credibility is positively related to perceived quality and information costs saved.
- What research method was used?
- Quantitative research using Structural Equation Modelling (SEM). with 177 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2012 journal from IOSR Journal of Business and Management.
- What should I do differently in my next project?
- When developing a new product or service, allocate marketing resources towards impactful advertising campaigns and consider non-monetary incentives like loyalty programs or enhanced features to build initial brand trust and encourage adoption.
- What are the limitations?
- The study was conducted within the telecommunication service industry, and findings may not be directly generalizable to other sectors. The effectiveness of monetary promotions might vary depending on the specific industry and promotional context.