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Optimal Feature Advertising Design Under Competitive Clutter

Author

Listed:
  • Rik Pieters

    (Department of Marketing, Tilburg University, 5000 LE Tilburg, The Netherlands)

  • Michel Wedel

    (Department of Marketing, Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Jie Zhang

    (Department of Marketing, Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

Abstract

This study investigates consumers' attention to retail feature ads and proposes a method to optimize the design of the ads. Utilizing a large dataset of consumers' attention to over 1,100 individual feature ads collected with eye-tracking technology, we analyze the effects of the five key design elements of feature ads--brand, text, pictorial, price, and promotion--on consumers' attention to them. Attention is measured in terms of selection and gaze duration. We focus on the effects of the surface sizes of the design elements. A key feature of our model is that it takes into account the impact of visual clutter in the ad display page. To capture the clutter effects, we propose two new entropy-based measures that characterize the salience of feature ads in their competitive environment based on Attention Engagement Theory. In a Bayesian framework, we simultaneously estimate the parameters of the model and optimize the design of feature ads in terms of surface sizes of the five design elements. Our optimization results and comparisons with alternative design approaches indicate that significant improvements in attention to feature advertising can be achieved without increase in costs, and that the resultant optimal feature ad designs create win-win opportunities for manufacturers and retailers.

Suggested Citation

  • Rik Pieters & Michel Wedel & Jie Zhang, 2007. "Optimal Feature Advertising Design Under Competitive Clutter," Management Science, INFORMS, vol. 53(11), pages 1815-1828, November.
    • Handle: RePEc:inm:ormnsc:v:53:y:2007:i:11:p:1815-1828
    DOI: 10.1287/mnsc.1070.0732
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    References listed on IDEAS

    as
    1. Michel Wedel & Rik Pieters, 2000. "Eye Fixations on Advertisements and Memory for Brands: A Model and Findings," Marketing Science, INFORMS, vol. 19(4), pages 297-312, October.
    2. Jie Zhang, 2006. "An Integrated Choice Model Incorporating Alternative Mechanisms for Consumers' Reactions to In-Store Display and Feature Advertising," Marketing Science, INFORMS, vol. 25(3), pages 278-290, 05-06.
    3. Rosbergen, Edward & Pieters, Rik & Wedel, Michel, 1997. "Visual Attention to Advertising: A Segment-Level Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(3), pages 305-314, December.
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    5. Pieters, R. & Warlop, L., 1998. "Visual Attention During Brand Choice : The Impact of Time Pressure and Task Motivation," Discussion Paper 1998-69, Tilburg University, Center for Economic Research.
    6. Janiszewski, Chris, 1998. "The Influence of Display Characteristics on Visual Exploratory Search Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(3), pages 290-301, December.
    7. Rosbergen, E. & Pieters, R. & Wedel, M., 1997. "Visual attention to advertising : A segment-level analysis," Other publications TiSEM c77552c4-5b16-4ecb-8a21-2, Tilburg University, School of Economics and Management.
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