Accountants attitudes toward advertising:

a longitudinal study
Kenneth E. Clow
College of Business Administration, University of Louisiana Monroe, Monroe, Louisiana, USA
Robert E. Stevens
School of Business, Southeastern Oklahoma State University, Durant, Oklahoma, USA
C. William McConkey
College of Business Administration, University of Louisiana Monroe, Monroe, Louisiana, USA, and
David L. Loudon
School of Business, Samford University, Birmingham, Alabama, USA
Abstract
Purpose The purpose of this study is to examine the attitude of accountants towards advertising and to investigate changes in attitude that may
have occurred between 1993 and 2004.
Design/methodology/approach Data were collected from accountants using a mail survey approach in 1993 and using an e-mail survey approach
in 2004. Questions on the two surveys were identical and a random sample of accountants was selected for each study. Statistical tests were used to
compare responses from 1993 with responses in 2004.
Findings Analysis of the results revealed signicant positive shifts in the attitudes accountants have toward advertising of accounting services.
Negative attitudes toward various aspects of advertising shifted to either a neutral or a positive position. This dramatic, positive shift in advertising
attitudes by accountants occurred while skepticism towards advertising remained relatively high, overall, among the general public. Between the two
time periods, changes in the use of various marketing tools (such as web sites to attract new clients) were also found to have occurred. In addition, the
use of marketing professionals by accounting service providers increased substantially over the 11-year time period of the longitudinal study.
Research limitations/implications Sample selection and size create some concern about generalizability of the study. With any random sample
selection process, the view of the non-respondents is not known nor whether those who responded tended to have a higher level of acceptance of
advertising.
Originality/value For marketing professionals, this shift to a more positive attitude by accountants provides opportunities to offer greater marketing
and advertising services. This shift also signals an increasing awareness on the part of accountants to market their services.
Keywords Accountants, Advertising, Professional services, Accounting
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Literature review
In 1977, the Supreme Court ruled in the Bates v. State Bar of
Arizona (1977, 97 S. Ct. 2691, 34 U.S., L.W. 4895) case that
professional codes of ethics that specically banned
advertising had to be rewritten to reect changes in the law.
Professional organizations could no longer prohibit their
members from advertising. Prior to 1977, the practice of
advertising by accountants, although not illegal, was regarded
as unethical and a violation of the accountants professional
code of ethics. That sentiment was held by most accounting
professionals. A study by Dyer and Shimp (1978)
approximately one year prior to the Supreme Court ruling
found that a large majority of respondents was strongly
opposed to accountant advertising. Opposition was
particularly strong among older accountants and those
practicing in larger, corporate-oriented rms. In addition,
most accountants were also strongly opposed to an anything
goes advertising approach where all forms of information
content (including price) and all available media (including
television) are acceptable.
A study in 1978, immediately following the Supreme Court
decision, found only 7 percent of accountants surveyed
planned to advertise (Markham et al., 2005). Thirteen years
later in 1991, another study found that accounting rms that
had been in business for more than ten years never planned to
advertise, in keeping with the concept of advertising being
unethical. But for rms that had been in business for less than
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0887-6045.htm
Journal of Services Marketing
23/2 (2009) 125132
q Emerald Group Publishing Limited [ISSN 0887-6045]
[DOI 10.1108/08876040910946387]
Received: June 2006
Revised: January 2007
Accepted: March 2007
125
ve years, 65 percent were currently advertising or planning
to advertise in the future (Markham et al., 2005).
The reluctance to advertise was partially due to local, state,
and national accounting professional societies not following
the Bates ruling by the Supreme Court. An investigation by
the Federal Trade Commission (FTC) found the prohibition
against accounting association members advertising was often
not removed. After the FTC investigation, a consent decree
was signed by the American Institute of Certied Public
Accountants (AICPA) on August 9, 1990. The AICPA agreed
in the decree not to punish its members for using solicitation,
pricing, advertising, and other marketing practices (Bose and
Law, 2003).
Research conducted after the Bates Supreme court ruling,
but prior to the FTC consent decree with the AICPA tended
to nd negative perceptions toward advertising among
professionals generally, not just accountants (Traynor,
1984). For example, Darling (1977) researched attitudes
toward professional advertising held by accountants,
attorneys, dentists, and physicians toward advertising and
found signicant differences between these four groups
attitudes. Although all of the groups had a negative perception
of advertising, accountants and attorneys were more positive
about the potential role of advertising in their professions.
Hite and Fraser (1988) conducted a meta-analysis of attitudes
toward advertising by professionals and found that
professionals continued to be reluctant to use advertising.
They feared that negative impacts on image, credibility, and
dignity were likely, with little benet forthcoming to
consumers.
These ndings are not surprising considering the general
widespread skepticism of advertising by consumers. Calfee
and Ringold (1994) presented empirical evidence that the
majority of consumers believed that advertising is often
untruthful; that it attempts to persuade people to buy things
they do not need; and that it should be more strictly
regulated. Based on public opinion polls, they concluded that
approximately 70 percent of consumers had this skeptical
view of advertising and that this view had been held for over
60 years that the data were available.
This skepticism was corroborated in a study by Ford et al.
(1990) that examined skepticism of claims made by search,
experience, or credence goods. Skepticism was greater for
experience and credence type of goods than for search goods.
Accounting services would fall into the former group, and
thus, face a higher level of skepticism.
After the FTC consent decree, attitudes of accountants
toward professional advertising continued its dichotomous
structure. Older accountants and larger CPA rms remained
opposed to advertising and were reluctant to engage in any
form of marketing, while younger accountants and smaller
rms were more open to advertising. In fact, younger partners
felt that if their rms were to grow, they must advertise and
follow brand-building strategies (Gamble et al., 2000).
Based on this history of accountants and their attitude
toward professional advertising, it is time to explore whether
current practitioners attitudes toward advertising have
become more favorable as older accountants have retired
and younger individuals have lled those vacancies. Other
issues that need to be addressed are:
1 How has the use of various marketing services and tools
changed over the last ten years?
2 How has the ranking of various marketing tools used
changed during this time period?
This study was designed to answer these types of questions.
Methodology
Data were collected in 1993 via survey questionnaires mailed
to a randomly selected sample of accountants located
throughout the contiguous 48 United States. The mailing
list was obtained from a mailing list broker who prepared the
sample. One thousand questionnaires were mailed and 243
were returned yielding a 24.3 percent response rate.
Questionnaire topics included practice characteristics,
personal characteristics, attitudes toward advertising, and
their own use of advertising, advertising agencies, other
marketing tactics, and marketing expenditures. In terms of
the rms practice, data collected included years of practice,
whether solo or group, area of specialty (if any), geographic
market area, and annual revenues of the rm.
Data were collected in the 2004 study through an Internet
survey. Bulk email addresses from a commercial database
were used to contact a random sample of accountants. An
email was sent to potential respondents asking them to
cooperate in the study by clicking on a link that took them
directly to the survey. The survey questionnaire was the same
one used in the mail survey 11 years earlier. A total of 4,000
e-mails were sent, 3,121 of these were delivered and 106
responded yielding a 3.39 percent response rate based on
delivered e-mails.
The two samples were comparable in terms of rm and
individual demographic characteristics. The average number
of years the accounting rm had been in practice was 16 to 20
years in 1993, compared to 21 to 25 years in 2004. In both
samples, the highest percentage of respondents was for those
rms with less than $500,000 in annual income. For both
studies, the majority of respondents were in a group practice.
In terms of individual characteristics, approximately 70
percent of both studies respondents were males. The 2004
respondent group was slightly older, with the highest
percentage being 50 to 59 years of age, compared to 40 to
49 for the 1993 study.
Although the two studies used different methods of
distributing questionnaires, the responses are comparable.
Research has shown that the two methods used mail and e-
mail do not produce signicant differences in responses
and, therefore, are appropriate for a comparative study
(McConkey et al., 2003).
Attitudinal measures on 19 statements were obtained by
using a seven-point Likert scale ranging from strongly
disagree (1) to strongly agree (7). The statements were
patterned after those used by Dyer and Shimp (1978) and
were used in both the 1993 and 2004 studies. These
statements covered four investigative areas:
1 Philosophical reasons for and against advertising.
2 Economic issues related to advertising.
3 Issues related to the potential impact of accounting
services advertising.
4 Issues concerning the implementation of accounting
services advertising.
Additional questions probed respondents use of various
marketing tools, external service providers, and possible
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
126
reasons why more marketing is not being done by the
accounting rms.
Several analytical approaches were used in the study. First,
the percentage and mean responses to each of the attitudinal
statements were computed for the purpose of determining the
direction of response patterns. Second, t-tests were used to
test for signicant differences in attitudinal responses between
the two studies. Third, a chi-square test was used to analyze
the differences in the two data sets for the percent using
various marketing services and tools. The null hypothesis
under the test was that the attitudinal scores in the 1993 study
and the scores in the 2004 study do not differ.
Results of attitudinal questions
Not only were signicant differences in attitude found
between the 1993 study and the 2004 study, but there were
also shifts in the use of various marketing tools. These
changes are discussed below.
Tables I-IV show the ndings of the 19 attitudinal
statements. Although a seven-point Likert scale was used
for these questions, the tables report only the percentages of
individuals who indicated some level of agreement or
disagreement with each statement. Respondents who
indicated no opinion (4 on the seven-point scale) are not
included in the percentage totals, but are included in
calculating the mean for each question. The percentage who
agreed with the statement would include everyone who
indicated strongly agree, moderately agree, and slightly
agree. The reverse would be true for the percentage of
respondents disagreeing with the statement. Means were
calculated for each question and t-tests were used to
determine signicant differences in responses between the
1993 and 2004 studies.
Philosophical issues
Table I reports longitudinal responses for the two
philosophical attitudinal statements. The rst statement
produced a signicant difference between the samples, while
the second did not. When asked their response to the
statement the accountant-client relationship is personal and
unique, and should not be established as a result of pressures
exerted by advertising, a signicantly lower number of
respondents agreed with the statement in 2004 than in 1993;
however, the majority agreed with the statement in both
studies. In 1993, 68.7 percent agreed with the statement,
while in the 2004 study 51.9 percent agreed. The mean in
1993 was 5.18 and in 2004 it was 4.37. Responses to the
second statement were not signicantly different, although the
percentage agreeing with the statement increased. In 1993, 23
Table I Philosophical issues
Percent agree Percent disagree Mean
Attitudinal dimensions 1993 2004 1993 2004 1993 2004 T-value
1. Relationship unique, not result of advertising 68.7 51.9 16.0 33.7 5.18 4.37 6.50
*
2. Existing information is inadequate 23.0 34.0 61.0 51.9 3.18 3.55 1.60
Notes: Neutral responses are not shown in the table, 1993 n 243, 2004 n 106;
*
Indicates signicant differences at the 0.05 level of signicance
Table II Economic issues
Percent agree Percent disagree Mean
Attitudinal dimensions 1993 2004 1993 2004 1993 2004 T-value
1. Demand increase if advertising used 53.6 58.6 23.0 23.6 4.63 4.73 0.50
2. Protect large rms from small rms 47.7 66.0 36.3 20.8 4.22 5.03 3.65
*
3. Ethical codes exist to protect incomes of rms 55.1 71.7 27.1 15.1 4.70 5.39 3.58
*
4. Large rms larger, small rms smaller 36.6 25.8 41.2 61.9 4.11 3.09 4.80
*
5. Provide new accounting positions 48.1 47.2 14.4 29.3 4.90 4.54 1.89
6. Prices would decrease 60.9 12.5 20.1 73.0 4.85 2.69 12.34
*
7. Quality of accounting services would improve 53.1 80.1 32.2 12.4 4.39 5.62 7.39
*
Notes: Neutral responses are not shown in the table, 1993 n 243, 2004 n 106;
*
Indicates signicant differences at the 0.05 level of signicance
Table III Consumer issues: facilitative effects
Percent agree Percent disagree Mean
Attitudinal dimensions 1993 2004 1993 2004 1993 2004 T-value
1. Public provided with useful information 46.8 51.4 28.4 27.6 4.48 4.52 0.25
2. Heighten publics understanding 32.9 39.7 49.7 41.6 3.80 4.14 1.70
3. Assist clients in nding accountants 56.8 64.4 30.0 24.5 4.69 4.92 1.13
4. Enable clients to make informed decision 48.5 52.9 32.1 34.0 4.42 4.50 0.41
Notes: Neutral responses are not shown in the table, 1993 n 243, 2004 n 106;
*
Indicates signicant differences at the 0.05 level of signicance
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
127
percent of the respondents indicated that existing
information sources (i.e. Yellow pages, association referral
services, lists, etc.) provide inadequate information to guide
potential clients accountant selection. The percentage
increased to 34 percent in the 2004 study.
Economic issues
Table II reports the ndings from the seven attitudinal
dimensions that address the economic issues related to
advertising by accountants. Statement 1 did not have a
signicant difference in the responses, although a majority in
each study agreed with the statement that the demand for
accountants services would increase if accountant service
advertising was widely used. In 1993, 53.6 percent of the
respondents agreed with the statement, while 58.6 percent
agreed with it in 2004.
Responses to the second statement were signicantly
different, with the percentage in agreement increasing from
47.7 percent in 1993 to 66.0 percent in 2004. Thus, in the
2004 study, almost two-thirds of accountants believe that
one principal effect of the accounting professions past
ethical canon against advertising is to protect established
accountants and large rms from competition from young
accountants and small rms. An even larger percentage (71.7
percent in 2004), agreed with the statement that ethical
codes against advertising exist to maintain and increase the
incomes of practicing accountants. This was a signicant
increase over the 55.1 percent who agreed with the statement
in 1993. In 2004, 61.9 percent of respondents indicated
disagreement with the statement if accountant service
advertising was widely used, the large, established rms
would get bigger, while the smaller rms would become even
less competitive than they are at present. In the 1993 study,
41.2 percent of the respondents disagreed with the statement.
Respondents do not see advertising of accounting services
helping large, established rms become even larger. In fact,
the results appear to indicate that respondents believe
advertising of accounting services will allow smaller rms to
be more competitive.
No signicant difference in responses was found between
the two studies for the statement that accountant service
advertising would help provide positions for thousands of new
accountants entering the profession. In fact, the percentage
agreeing was almost identical, 48.1 percent in 1993 versus
47.2 percent in 2004.
A signicant difference was found between the two samples
for the statement that the prices of accounting services
would decrease if accounting service advertising were widely
used. The t-value was 12.34 with a mean of 4.85 in 1993 and
2.69 in 2004. In 1993, 60.9 percent of the accounting
respondents believed that advertising of accounting services
would drive down the prices they could charge for their
services, thus increasing the belief that advertising would
adversely affect the accounting profession. In 2004, only 12.5
percent believed advertising would drive down prices while 73
percent believed this would not occur.
The last economic dimension dealt with service quality. A
signicant difference was found between the samples
regarding responses to the statement that the quality of
accounting services would improve if advertising were widely
used. In 1993, 53.1 percent indicated agreement while 80.1
percent indicated agreement in 2004. Interestingly, although
accountants appeared to be heavily opposed to advertising in
1993, yet 53.1 percent believed that advertising would
improve the quality of accounting services being offered to
clients, perhaps because of an increased level of
competitiveness.
Consumer issues
Table III reports the ndings of the four dimensions that
address the facilitative effects of consumer issues. None of the
dimensions were signicantly different indicating no change
in attitudes of accountants over the 11-year period. It is worth
noting, however, that the percentage of respondents who
agree with the statements did increase. The facilitative effects
statements include the following:
.
The public would be provided with useful information
through the advertising of accountants services.
.
Accounting service advertising would heighten the
publics understanding of situations where accounting
assistance is needed.
.
Accounting service advertising would assist potential
clients in knowing which accountants are competent to
handle particular accounting problems.
.
The information provided the public through accounting
service advertising would enable potential clients to make
a more informed selection of accountants.
A cursory review of the means indicates that approximately
half of accountants believe that advertising of accounting
services provides consumers with useful information, assists
clients in nding the right accountants, and enables clients to
make a more informed decision. Not quite as many
accountants (approximately 40 percent), believe that
advertising would heighten the publics understanding of
situations when accounting services would be needed.
The last six statements deal with the negative effects of
consumer issues. Results are presented in Table IV. Of the six
Table IV Consumer issues: negative effects
Percent agree Percent disagree Mean
Attitudinal dimensions 1993 2004 1993 2004 1993 2004 T-value
1. Public condence impaired 49.4 25.5 28.8 59.5 4.41 3.33 5.18
*
2. Confuses potential clients 31.3 22.7 38.2 52.8 3.38 3.90 2.68
*
3. Advertising not viewed as credible 38.3 15.1 21.8 58.5 4.23 3.13 6.39
*
4. Intensify client dissatisfaction 44.0 14.1 19.4 59.4 4.45 3.15 7.84
*
5. Degenerate into misleading ads 34.2 35.0 46.4 49.1 3.76 3.75 0.71
6. If ads permitted, regulations needed 60.5 47.2 25.1 39.6 4.75 4.11 4.01
*
Notes: Neutral responses are not shown in the table, 1993 n 243, 2004 n 106;
*
Indicates signicant differences at the 0.05 level of signicance
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
128
dimensions, ve had signicant differences between the
samples. In 1993, 49.4 percent of the respondents agreed with
the statement that public condence in the accounting
profession would be impaired by accounting service
advertising while only 25.5 percent agreed with the
statement in 2004. For the next statement, advertising of
accounting services confuses rather than enlightens potential
clients, the percentage of respondents who agreed declined
from 31.3 percent in 1993 to 22.7 percent in 2004, a
signicant difference. A similar but even stronger change in
attitude was found for the third and fourth dimensions. The
third dimension stated the public would not regard
information in accounting services advertisements as
credible. While 38.3 percent of the accountants agreed
with the statement in 1993, only 15.1 percent agreed in 2004.
The fourth issue was that the advertising of accounting
services would tend to intensify client dissatisfaction after
services have been rendered. In 1993, 44 percent of
accountants believed advertising would lead to a higher level
of dissatisfaction, while in 2004 only 14.1 percent believed
such a result would occur.
The only statement in this series that did not produce a
signicant change in attitude was dimension ve, if
accounting service advertising were widely used, it
eventually would degenerate into a circus of misleading and
deceptive advertisements. Approximately 35 percent of the
respondents in both samples agreed with the statement.
The last dimension in this series stated if advertisement of
accounting services were widely used, stringent regulations
would have to be imposed, e.g. something like a Truth in
Advertising Law. In 1993, approximately 60 percent of
accountants believed such regulations would be necessary,
while in 2004 the percentage was 47.2 percent, a signicant
difference.
Responses were also analyzed for differences based on age,
practice characteristics, and other criteria. Cross-tabulations
were run on the 19 attitudinal dimensions and no signicant
differences were found on any of the individual or practice
characteristics using a chi-square test at the 0.05 level of
signicance.
Accountants use of marketing tools
All of the rms responding in the 2004 study reported that
they made some allocation for marketing expenditures. The
median amount was from $1,000 to $4,999 and the highest
amount was more than $35,000 (4.77 percent of
respondents). This included total expenditures for all
marketing activities such as promotion, consulting fees, and
marketing personnel.
Respondents were asked to indicate which marketing tools
they employ. Results are shown in Table V. Since respondents
could indicate utilization of more than one tool, percentages
add up to greater than 100 percent. Chi-square analysis of the
various marketing tools utilized by accounting rms between
the two time periods was signicantly different at the 0.05
signicance level. Based on the results, there appears to be a
shift from heavy dependence on more traditional media (such
as newspaper ads and yellow pages) to electronic media (such
as websites).
Yellow page advertising ranked rst in both studies;
however, the percentage that used it declined from 61.3
percent in 1993 to 47.7 percent in 2004. Newspaper
advertising ranked second in 1993, used by 37.9 percent of
accountants, but dropped to fth in the 2004 study, at 21.5
percent. Second place in 2004 was taken by websites that, as
an embryonic approach, was not measured in the 1993 study.
Approximately 42 percent of the 2004 respondents indicated
their rms used websites for promotion.
Firms citing the use of seminars dropped from 35.8 percent
in 1993 to 28 percent in 2004, while the use of brochures
increased from 30.5 to 39.3 percent over the period. Radio
advertising decreased from 14 to 10.3 percent, but television
advertising more than doubled from 2.5 percent in 1993 to
5.6 percent in 2004. Billboards were cited by only 1.2 percent
of the respondents in 1993 but had grown to 2.8 percent in
2004.
External marketing services
The next set of questions dealt with marketing service
providers. Responses are shown in Table VI and were found
to be signicantly different based on a chi-square test. There
were increases in the use of all of the external services, but
most notably in the use of marketing consultants. Again, these
ndings are consistent with the more positive attitude found
in the 2004 study.
The use of marketing consultants doubled, increasing from
8.2 percent in 1993 to 16.8 percent in 2004. The use of
public relations rms also doubled as did the use of marketing
research rms. In 1993 only 3.3 percent used public relations
rms and 1.6 percent used marketing research rms. These
increased to 8.4 and 3.7 percent, respectively, in 2004. The
use of advertising agencies increased only slightly, from 7.4
percent in 1993 to 8.4 percent in 2004.
Reasons for lack of marketing
Respondents were also asked why they did not engage in more
marketing activities. Results, which are shown in Table VII,
were signicantly different based on a chi-square test. Most
Table V Marketing tools used
Marketing Tool
Percent using
(rank) 1993
Percent using
(rank) 2004
Yellow page ads 61.3 (1) 47.7 (1)
Newspaper ads 37.9 (2) 21.5 (5)
Seminars/other 35.8 (3) 28.0 (4)
Brochures 30.5 (4) 39.3 (3)
Radio advertising 14.0 (5) 10.3 (6)
Television advertising 2.5 (6) 5.6 (8)
Billboards 1.2 (7) 2.8 (7)
Websites
*
na 42.1 (2)
Notes: Chi-square =21.3, df 6, p , 0.05,
*
Not measured in the 1993
study
Table VI Use of external marketing services
Service provider Percent using 1993 Percent using 2004
Advertising agency 7.4 8.4
Public relations rm 3.3 8.4
Marketing research rm 1.6 3.7
Marketing consultant 8.2 16.8
Notes: Chi-square =27.81, df 3, p , 0.05
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
129
notable are the downward shifts in costs too much, costs
outweigh benets, and looks unprofessional to clients.
These results are consistent with the shift in attitudes towards
advertising by accountants discussed earlier. The percentage
of respondents who indicated marketing costs too much
declined from 53.1 percent in 1993 to 25.2 percent in 2004.
The percentage of respondents who stated marketing costs
outweigh benets declined from 52.3 to 40.2 percent. The
percentage of respondents who indicated advertising looks
unprofessional to clients decreased from 29.2 to 17.8 percent.
As shown in Table VII, all of the remaining reasons for not
using marketing also declined, although not as much as the
rst three.
Conclusions
Although many changes have taken place in professional
services marketing since the Bates decision and the FTC
consent decree, this study reveals signicant shifts in attitudes
of accountants toward advertising their services. In almost all
cases, these shifts represent more favorable attitudes toward
advertising of accounting services compared to the earlier
study. The fear that advertising would protect larger,
established rms and drive down prices was not as evident
in 2004 as it was in 1993. Further, more accountants in 2004
believed there will be a positive impact on the quality of
services provided as a result of advertising, forcing rms to
become more competitive and more service-oriented towards
their clients.
For many years the accounting profession, as well as other
professional service organizations, had prohibitions against
advertising, claiming it was unethical. But many accountants,
especially younger accountants and accountants with smaller
accounting rms believed the prohibition was enacted to
protect the large, established rms from encroachment by
smaller rms. This belief increased substantially by 2004
indicating an increasing suspicion by accountants concerning
the true reason for enacting the advertising prohibition.
Evidently, the FTCs consent agreement was seen by
accountants as a signal by the federal government and legal
system that professional organizations prohibition of
advertising by their members constituted an unfair level of
competition and, thus, protected the larger, established rms
from more agile and competitive smaller rms.
Some of the more dramatic changes in attitudes relate to
the overall attitude towards advertising. Fewer accountants in
2004 believed advertising of accounting services would impair
the publics condence in accounting services or dilute the
rms credibility, confuse potential clients, or intensify
dissatisfaction among clients. This nding is especially
remarkable in light of the general attitude of skepticism by
consumers, with approximately 70 percent of consumers
believing that advertising is untruthful and cannot be trusted.
For accountants to indicate a more positive attitude towards
advertising at a time when the public, as a whole, is skeptical
of advertising highlights the interesting ndings of this
research and a shift in attitude by accountants that runs
counter to societys beliefs.
Based on the ndings of this study, then, the following
changes are afoot in the accounting professions perceptions
of advertising:
.
Philosophically, respondents have more positive feelings
about the use of advertising to help establish the
accountant-client relationship.
.
They view the competitive accounting environment as less
susceptible to advertising pressures. They overwhelmingly
reject the notion that advertising protects large,
established accounting rms from competition by small,
young rms; that anti-advertising codes of ethics exist to
maintain and increase the incomes of practicing
accountants; and that widespread use of advertising will
lead to large, established rms getting bigger while small
rms would become less competitive.
.
They afrm that accounting prices would not decrease as
a result of widespread accounting advertising; nor would it
result in a decline accounting service quality.
.
They believe that advertising does not impair public
condence in the accounting profession; is viewed as
enlightening, not confusing, to potential clients; and is
regarded as credible to the public.
.
Although there is still a sizeable segment who feels the
need for a Truth in Accountants Advertising Law, it has
shrunk by about one-fourth since 1993.
This positive change in the general attitude towards
advertising resulted in an increased use of advertising by
accountants and the usage of marketing professionals as well
as marketing tools. It is clearly evident that the demand for
marketing services designed specically for this group should
expand in the future. Many accountants cite the use of yellow
page advertising, websites, brochures, and seminars to
promote their services. Some rms are also using the
services of external marketing service providers and some
have part-time or full-time marketing personnel.
Managerial implications
The results from this study are encouraging for accounting
rms that wish to market their services and for marketing and
advertising agencies who are seeking new clients. From the
standpoint of the accounting rm, using a marketing rm,
advertising agency, or marketing consultant, is no longer
viewed negatively. Such services can be used to design an
accounting rms website and design brochures and other
advertisements. Providing this type of information to the
public will benet potential clients and increase their
perception of the accounting rms ability to provide quality
service.
This study is especially pertinent to advertising agencies,
marketing rms, and marketing consultants. Accountants are
a legitimate source of clients and should be actively pursued.
Table VII Why more marketing is not used
Reason
Percent
1993
Percent
2004
Costs too much 53.1 25.2
Costs outweigh benets 52.3 40.2
Looks unprofessional to clients 29.2 17.8
No competitive pressure 25.5 14.0
Not enough knowledge of what to do 19.8 18.2
Looks unprofessional to other accountants 14.0 11.2
Other reasons 19.8 11.2
Notes: Chi-square =31.52, df 6, p , 0.05
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
130
Most now have a positive attitude towards advertising, or at
least, not a negative attitude. They are open to marketing and
advertising approaches and see it as a way of making their rm
more competitive.
Based on this study, advertising does not need to focus on
price. Most accountants did not believe prices charged to
clients will decrease. They see just the opposite. Accountants
believe that through advertising of their services, the quality of
service provided to clients will improve. Promoting this higher
level of service is certainly attractive to clients as well as to
accounting rms.
While websites will continue to grow in importance, the use
of television advertising doubled during the span of these two
studies and is an attractive medium for advertising of
accounting services. While billboards are a small part of this
advertising picture, its importance has increased and should
be pursued. The one medium that needs less emphasis is
newspapers. This may be due to the feeling that it is more
difcult to project an image of providing high quality service
through newspaper advertising. Television advertising and
brochures provide a more conducive vehicle for conveying
service quality.
Because of this shift in attitude, a window of opportunity is
open for advertising agencies, public relations rms,
marketing research rms, and marketing consultants to tap
a market that in the past was largely taboo. Accountants no
longer believe marketing costs too much and looks
unprofessional. While not fully convinced the benets
outweigh the costs, most understand the need to advertising
and promote their accounting service.
Recommendations for future research
This study found signicant changes in the attitudes of
accountants towards advertising their services. Future studies
need to examine the attitude of consumers towards
advertising of accounting services. Does advertising impact
a potential clients image of an accounting rm? Has a similar
shift occurred or do consumers remain skeptical of advertising
as was found by Calfee and Ringold (1994)?
Because accountants are more positively disposed to
advertising, opportunities for marketing professionals should
increase. As a result, research should be conducted as to the
best and most effective marketing tools for accounting
services. In addition, what advertising approaches, appeals,
and executions should be used? This study opens the door to
a number of possible studies into the impact of advertising of
accounting services and the most effective means of
accomplishing that advertising.
References
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and Craig, J.L. Jr (2000), What small and medium-sized
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Corresponding author
Kenneth E. Clow can be contacted at: clow@ulm.edu
Executive summary and implications for
managers and executives
This summary has been provided to allow managers and executives
a rapid appreciation of the content of the article. Those with a
particular interest in the topic covered may then read the article in
toto to take advantage of the more comprehensive description of the
research undertaken and its results to get the full benet of the
material present.
Strange to think that there was once a time, not too many
years ago, when accountants did not advertise their skills and
services. Not only was it at odds with their professional code
of ethics, it was viewed as somehow beneath the dignity of the
calling. And accountants were not the only professionals who
considered advertising taboo attorneys, dentists, and
physicians held similar views. Although many younger
accountants were convinced that advertising was essential if
their rms were to grow, the general feeling was a fear that
negative impacts on image, credibility, and dignity were likely,
with little benet for consumers.
All that has changed and if you want an accountant these
days you can nd any number of them proudly advertising
their expertise, not least on the internet where rms clamor to
compete. For marketing professionals, this shift to a more
positive attitude provides opportunities to offer them greater
marketing and advertising services. Most now have a positive
attitude towards advertising, or at least, not a negative one.
They are open to marketing and advertising approaches and
see it as a way of making their rm more competitive.
Advertising agencies, PR rms, market research companies,
and marketing consultants can now tap a market that in the
past was largely off limits. Accountants no longer believe
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
131
marketing costs too much and looks unprofessional. While
not fully convinced that the benets outweigh the costs, most
understand the need to advertise and promote their service.
In Accountants attitudes toward advertising: a
longitudinal study, Kenneth E. Clow et al. ask:
1 How has the use of various marketing services and tools
changed over the last ten years?
2 How has the ranking of various marketing tools used
changed during this time?
Based on their ndings, the following changes are afoot in the
accounting professions perceptions of advertising:
.
Philosophically, respondents have more positive feelings
about the use of advertising to help establish the
accountant-client relationship.
.
They view the competitive accounting environment as less
susceptible to advertising pressures. They overwhelmingly
reject the notion that advertising protects large,
established accounting rms from competition by small,
young rms; that anti-advertising codes of ethics exist to
maintain and increase the incomes of practicing
accountants; and that widespread use of advertising will
lead to large, established rms getting bigger while small
rms would become less competitive.
.
They afrm that accounting prices would not decrease as
a result of widespread accounting advertising; nor would it
result in a decline in accounting service quality.
.
They believe that advertising does not impair public
condence in the accounting profession; is viewed as
enlightening, not confusing, to potential clients; and is
regarded as credible to the public.
.
Although there is still a sizeable segment who feels the
need for a truth in accountants advertising law, it has
shrunk by about one-fourth since opinion was previously
tested in 1993.
This positive change in the general attitude towards
advertising resulted in an increased use of advertising by
accountants and the usage of marketing professionals as well
as marketing tools. It is evident that the demand for
marketing services designed specically for this group
should expand in the future. Many accountants cite the use
of yellow page advertising, websites, brochures, and seminars
to promote their services. Some rms are also using the
services of external marketing service providers and some
have part-time or full-time marketing personnel.
All of which is encouraging for accounting rms that wish
to market their services and for marketing and advertising
agencies who are seeking new clients. Accountants are a
legitimate source of clients and should be actively pursued.
Based on this study, advertising does not need to focus on
price. Most accountants did not believe prices charged to
clients will decrease. They see just the opposite. Accountants
believe that through advertising their services, the quality of
the service provided will improve. Promoting this higher level
of service is certainly attractive to clients as well as to
accounting rms.
While websites will continue to grow in importance, the use
of television advertising has also increased signicantly and is
an attractive medium for advertising accounting services.
While billboards are a small part of this advertising picture,
their importance has increased and should be pursued. The
one medium that needs less emphasis is newspapers. This
may be due to the feeling that it is more difcult to project an
image of providing high quality service through newspaper
advertising. Television advertising and brochures provide a
more conducive vehicle for conveying service quality.
(A precis of the article Accountants attitudes toward advertising:
a longitudinal study. Supplied by Marketing Consultants for
Emerald.)
Accountants attitudes toward advertising: a longitudinal study
Kenneth E. Clow et al.
Journal of Services Marketing
Volume 23 Number 2 2009 125132
132
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