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Journal of Consumer Behaviour, J. Consumer Behav.

12: 133–147 (2013)


Published online 4 March 2013 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/cb.1421

Direct or indirect comparative ads: The moderating role of information


processing modes
ARTI D. KALRO1*, BHARADHWAJ SIVAKUMARAN2 and RAHUL R. MARATHE3
1
Shailesh J Mehta School of Management, Indian Institute of Technology Bombay Mumbai 400 076, India
2
Great Lakes Institute of Management, Chennai 600 015, India
3
Department of Management Studies, Indian Institute of Technology Madras Chennai 600 036, India

ABSTRACT

Comparative advertising is widely used as a persuasion tool. Contemporary advertisers employ both direct (e.g. “Total Corn Flakes
have more nutritional ingredients than Kellogg Corn Flakes”) and indirect comparative advertisements (e.g. “Total Corn Flakes have more
nutritional ingredients than other corn flakes”) in their campaigns. Consumers process ads predominantly either through analytical
(using reason and semantics) or imagery (using nonverbal, sensory representation of perceptual information) modes of processing.
Drawing on extant research in advertising and information processing, we posit that direct comparisons are better suited for analytical
processing while indirect ones are more amenable for imagery processing.
Using a 2*2 factorial design (comparison format—direct/indirect; mode of information processing—analytical/imagery), we show that
direct (indirect) comparative advertisements are more effective in reducing perceived manipulative intent, enhancing attitude toward the
advertisement, and increasing the perceived differences between the brands for consumers using analytical (imagery) information
processing modes.
We add to the comparative advertising literature by identifying a moderator (mode of information processing) that influences the effectiveness
of direct and indirect comparisons. Further, we study indirect comparisons when most extant research considers direct comparisons.
Managerially, our work suggests that advertisers using comparative advertising should use direct comparisons under analytical processing
conditions and use indirect comparisons under imagery processing conditions. Copyright © 2013 John Wiley & Sons, Ltd.

INTRODUCTION, LITERATURE REVIEW, AND visual comparisons without naming the competitor (Miniard
MOTIVATION FOR STUDY et al., 2006). Hence, for this study, we adopt the comprehen-
sive definition of the US Federal Trade Commission (FTC)
Comparative advertising is widely used as a persuasion tool. defining comparative advertising as “advertising which
Some classic examples of comparative advertising campaigns compares alternative brands on objectively measurable
are that of Avis versus Hertz (Lawrence, 1993) and Silverado attributes or price, and identifies the alternative brand by
trucks by General Motors versus Dodge Ram trucks by name, illustration, or other distinctive information” (Federal
Chrysler Corp (Williams, 2012). Comparative advertising Register, USA, 1979, pp. 47328–47329).
is widely used in emerging markets as well (Kalro et al., In many consumer markets (like USA, India, and Philippines),
2010); some recent examples include Ford India versus advertisers use a mix of both direct and indirect comparisons
the rest (Singh, 2011) and Reckitt Benckiser’s Quantum (Millward Brown, 2009). Consistent with this report, Kalro
dishwashing detergent versus Procter & Gamble’s Cascade et al. (2010) find that 68 per cent of all comparative ads are
(Neff, 2011). Sometimes, brands are compelled to retaliate direct while 32 per cent are indirect. However, very few studies
to competitor attacks. For instance in India, Complan (a Heinz have looked at studying direct versus indirect comparative
brand) launched a broadside against Horlicks, the market ads (e.g. Walker and Anderson, 1991; Snyder, 1992). Most
leader owned by GlaxoSmithKline. Horlicks in turn retaliated of the extant literature on comparative advertising focuses
forcefully with a direct comparison campaign (Bhushan and on direct comparisons versus noncomparative advertisements
Chatterjee, 2008). It would have been nearly impossible for (e.g., Polyorat and Alden, 2005; Thompson and Hamilton,
Horlicks not to retaliate. 2006; Pillai and Goldsmith, 2008). It is not sufficient to
Brands using comparative advertising may make a direct look at only direct comparisons because direct and indirect
reference (where a competitor is explicitly named/shown; comparisons are processed differently (e.g. Walker and
e.g. “Total Corn Flakes have more nutritional ingredients Anderson, 1991; Snyder, 1992). Snyder (1992) showed that
than Kellogg Corn Flakes”) (Wilkie and Farris, 1975) or an direct comparisons promote exemplar-based processing and
indirect reference (the competitor is implicitly referred to, indirect comparisons promote prototype-based processing.
without naming it) to their competitor(s) (Jackson et al., 1979). Therefore, advertisers who want to use comparative advertis-
Some forms of indirect comparisons include references like ing are either unsure of which (direct or indirect) to use or
“compared to the leading brand,” “compared to Brand X,” end up using direct comparisons (since this is the “default”),
“better than other brands,” “compared to all other brands,” or when in fact indirect comparisons may be warranted in
their case.
The widespread use of both direct and indirect comparisons
*Correspondence to: Arti D. Kalro, Assistant Professor, Shailesh J. Mehta School
of Management, Indian Institute of Technology Bombay, Mumbai 400 076, India. and, sometimes, the simultaneous use of them by the same
E-mail: kalro.arti@iitb.ac.in advertiser (Kalro et al., 2010) suggest that these different

Copyright © 2013 John Wiley & Sons, Ltd.


134 A. D. Kalro et al.

comparative formats (direct and indirect) aim at different advertisement, and perceived differences between the
consumer segments. Additionally, Soscia et al. (2010) show brands as dependent variables.
that not all customers belonging to a product target group
perceive comparative advertising equivalently. Hence, gener- Analytical and imagery information processing
alizing conclusions across varying formats of comparative The process through which a consumer is exposed to
ads (direct versus indirect) is very difficult (Walker and information and how he or she attends to it, comprehends
Anderson, 1991). As mentioned earlier, most research in this it, places it in memory, and retrieves it for later use is called
area looks at the effectiveness of comparative versus noncom- information processing (MacInnis and Price, 1987). These
parative ads while we attempt to answer the question “given processing modes may vary in terms of how consumers
comparative advertising, which one to use, direct or indirect?” elaborate information while processing an advertisement.
Few studies that have considered direct versus indirect Oliver et al. (1993) observed that the consumers might
comparisons have identified variables such as typicality of elaborate the information present in an advertisement, using
featured attribute (Pechmann and Ratneshwar, 1991), brand either of the two qualitative information processing modes:
position in the marketplace (Snyder, 1992), claim substantia- analytical or imagery.
tion (WoonBong et al., 2006), and culture (Jeon and Beatty, Consumers who predominantly employ the analytical
2002) moderating the relationship between comparison format mode of information processing use reason and semantics,
(direct versus indirect) and advertising effectiveness. We and those who predominantly employ imagery information
study the effectiveness of direct and indirect comparisons processing use nonverbal, sensory representation of perceptual
in conjunction with mode of information processing (analytical information (Childers et al., 1985). Although these modes
and imagery). are not mutually exclusive, one mode usually dominates
Looking at information processing modes, Thompson and the other (MacInnis and Price, 1987). In the analytical mode
Hamilton (2006) examine consumers’ readiness to process of information processing, consumers evaluate products on
information in either a comparative or a noncomparative an attribute-by-attribute basis (Sujan, 1985), while in the
format. Based on research on the processability of information imagery mode of information processing, the product is
(ease with which consumers process information), they evaluated on the overall quality of the imagined experience
classify the consumer’s readiness to process information with the product (Keller and McGill, 1994).
into imagery (using nonverbal, sensory representation of This research examines only the interaction effects
perceptual information) and analytical (using reason and (e.g. comparison formats * information processing modes
semantics) processing modes. They demonstrate that adver- on perceived manipulative intent) and not the main effects
tising effectiveness depends on the degree of consistency (e.g. direct versus indirect on perceived manipulative
between the consumer’s information processing mode and intent). This is because prior research (e.g. Pechmann and
the advertising formats (comparative versus noncomparative). Ratneshwar, 1991; Neese and Taylor, 1994; Jeon and
Briefly, their study shows that when consumers engage in Beatty, 2002; WoonBong et al., 2006) shows that one
analytical processing, comparative advertisements are more cannot make a sweeping generalization that direct compari-
effective, and when consumers engage in imagery processing, sons are always better/worse than indirect ones; it depends
noncomparative advertisements are more effective. However, on certain moderating variables.
Thompson and Hamilton (2006) consider only direct and
do not consider indirect comparisons, whereas in the Choice of dependent variables
marketplace, advertisers use both direct and indirect This study considers three dependent variables: perceived
comparisons. Moreover, direct and indirect comparisons manipulative intent, attitude toward the advertisement, and
need not work in the same manner. perceived brand differences.
Thus, the goal of this study is to examine whether Perceived manipulative intent refers to a state where “a
advertisers should match different comparative advertising consumer infers that the advertiser is attempting to persuade
formats (direct/indirect) with different modes of information him/her by inappropriate, unfair, or manipulative means”
processing (analytical/imagery) to enhance the effectiveness (Campbell, 1995). Chang (2007) elaborates on the findings
of comparative advertisements. In other words, should of Boush et al. (1994), which reveal that although skepticism
advertisers use direct/indirect comparisons under different toward advertising is a general phenomenon, tactics like
information processing conditions (analytical/imagery)? comparative advertising magnify the skepticism. Judgments
such as manipulativeness of persuasive tactics influence the
believability of the advertisement and consequently influence
CONCEPTUAL FRAMEWORK AND RESEARCH a consumer’s behavioral responses (Yagci et al., 2009).
HYPOTHESES Hence, we consider this as one of the dependent variables.
While many researchers have studied consumers’ attitudes
In this section, we briefly explain the different informa- toward direct comparative advertisements versus their
tion processing modes and the choice of dependent attitudes toward noncomparative advertisements (Goodwin
variables. Then we draw on prior literature and come up with and Etgar, 1980; Belch, 1981; Swinyard, 1981; Gorn and
hypotheses linking comparison formats (direct/indirect) Weinberg, 1984; Dröge and Darmon, 1987; Donthu, 1998),
and information processing modes (analytical/imagery) there is scant research to understand consumers’ attitude
with perceived manipulative intent, attitude toward the toward direct versus indirect comparative advertisements.

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 135

This study attempts to investigate consumers’ attitude toward competitors so that they can use these encoding cues as a
different comparative advertising formats (direct and indirect). point of reference for interpreting claims about the advertised
Thus, attitude toward the ad (Aad) is included as the second brand’s merits over the competitor(s) mentioned. Further, the
dependent variable. use of direct comparisons against competitors, for consumers
Creating perceived differences between the advertised engaging in analytical processing, will reduce the perceived
brand and the referred-to brand(s) is critical because this manipulative intent of the advertiser and enhance attitudinal
helps the advertised brand establish a distinct position responses. This is because the presentation of congruent
vis-à-vis other brand(s) in the consideration set (Dickson facts facilitates the development of an elaborate associative
and Ginter, 1987). Further, Nakanishi and Bettman (1974) network, thus enhancing information availability (Bradshaw
suggest that the greater the perceived variation among the and Anderson, 1982). This information availability increases
brands on a specific attribute, the greater is the perceived the vividness of information, and comparisons across the
importance of that attribute as a choice or evaluation competitors activate the preexisting knowledge structures of
criterion. Therefore, this study considers perceived brand the consumers (Dröge, 1989). Thus, the audience may come
differences as the third dependent variable. to value such information because it makes decision making
easier and reduces current or later search efforts (Lynch and
Interaction effects of comparison formats and informa- Srull, 1982; Cohen and Basu, 1987).
tion processing modes on the dependent variables In addition, also in direct comparisons, consumers create
Previous research has shown that comparative ads (noncom- mental representations in relation to a specific reference point
parative ads) are more effective when consumers use analytical (the referred-to brand in the advertisement). Concurrently,
(imagery) information processing (Thompson and Hamilton, analytical information processing is data driven, leading
2006). The underlying premise is that, by definition, compara- consumers to evaluate products on an attribute-by-attribute
tive advertisements are relational (Muehling et al., 1990) and basis (Sujan, 1985), and this encourages them to summarize
consumers cannot process the comparative claims in isolation features across brands rather than focus on a single brand
from one another. This relational evaluation across brands (MacInnis and Price, 1987). Therefore, in direct compari-
results in consumers integrating the claims about the advertis- sons, consumers engaged in analytical processing learn from
ing brand, along with the comparative information given the information on the relative merits of a sponsoring brand
about the other referred-to brand(s). This integration stimulates and competing brands. Hence, under analytical conditions
processing and increases the likelihood of cognitive elabora- where the processing is data driven and focused on verbal
tion. Thus, comparative claims facilitate the assessment of retrieval and encoding (MacInnis and Price, 1987), direct
the advertising brand’s benefits over competitor(s), making comparisons will be more effective in creating differentiation
comparative ads more effective under analytical processing. between the sponsored brand and the referred-to brand.
Research shows that consumers process direct and indirect Hence, we posit the following:
comparisons differently (Walker and Anderson, 1991; Snyder,
H1a: When consumers engage in analytical processing,
1992). While direct comparisons are processed with reference
perceived manipulative intent will be lower in direct
to an exemplar (a particular member of the category to which
comparisons than in indirect comparisons.
the new stimulus is compared, typically a market leader),
indirect ones evoke a prototype (idealized or average set of H2a: When consumers engage in analytical processing,
features of category members to which the new stimulus is direct comparative ads will have stronger Aad than indirect
compared) in consumers’ minds (Snyder, 1992). Using this comparative ads.
logic, it is apparent that direct comparisons are possibly
H3a: When consumers engage in analytical processing,
more suited to analytical processing, since the exemplar
perceived brand differences will be higher in direct
referred to by Snyder (1992) is concrete and well recognized
comparisons than in indirect comparisons.
by the audience. On the other hand, indirect comparisons
may be more suited for imagery processing conditions, since Studies suggest that while processing comparative ads
the prototype is an idealized set of features, and this is not that make implicit claims over other brands (e.g., “Malayala
very concrete and apparent; rather, it is more abstract, therefore Manorama has a circulation that’s greater than that of
lending itself to imagery processing. the No.2, No. 3, No.4 dailies put together”), it is likely that
Walker and Anderson (1991) also state that when a the base category level schema is automatically activated
claim is implicit (i.e. indirect), the ad is not processed with (Miniard et al., 2006). Walker and Anderson (1991) also
reference to specific points (in other words, it is more amena- state that “since the implicit claim does not contain specific
ble to imagery processing) whereas when the claim is explicit points, which conflict with the general (or base category level
(i.e. direct), the ad is processed with reference to specific schema), consumers will process the advertisement naturally
points (in other words, more amenable to analytic processing). and automatically, with minimal conflict”. There is support
Direct comparisons that name competitors provide more for the notion that creating cognitive load by providing
opportunity for audience involvement, in terms of comparing surplus information (for instance, by explicitly naming
the advertised brand with the “specific” referred-to brand(s) the competitors) may consume more cognitive resources
(Wilson and Muderrisoglu, 1980). This high involvement and consequently hinder imagery processing (Petrova and
will be effective under analytical processing, because in Cialdini, 2005). This suggests that indirect comparisons
this mode of processing, consumers prefer explicitly named will be compatible with imagery processing. It will be easy

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
136 A. D. Kalro et al.

to imagine the product in indirect comparisons, since they processing modes: analytical/imagery) between-subjects
will be free of the other distracting brands. Further, imagery experimental design. The respondents were students of
processing is holistic in nature. Consumers’ cognitive resources prominent universities in a metropolitan city in India.
for processing information across brands on various attributes
are reduced (MacInnis and Price, 1987). Thus, indirect Product selection and attributes
comparisons will accord better with the imagery mode of Studies in comparative advertising generally focus on
information processing, where consumers evaluate the consumer goods that are high on utilitarian and functional
product on the overall quality of the imagined experience benefits (Barry, 1993). However, a recent content analysis
with the product (Keller and McGill, 1994) and not on (Kalro et al., 2010) revealed that advertisers use comparative
specific points. advertising for both utilitarian and hedonic products. Further,
Using the logic of abstraction-based positioning (i.e. achiev- by definition, products high on utility will stimulate analyti-
ing brand consideration but without directly comparing against cal processing and products high on hedonic consumption
the market leader or a strong brand), indirect comparisons will benefits will encourage imagery processing (Hirschman and
help the sponsored brand position itself against the entire Holbrook, 1982). If we use a hedonic product, we would
market (Miniard et al., 2006). In addition, under imagery pro- be biasing subjects to use imagery processing, and if we
cessing, indirect comparisons lead to product-category level use a utilitarian product, we would be priming them to think
activation, and this will enhance the consumers’ process of analytically. Hence, we needed to have a product that was
“imagined experience” with the product. Therefore, indirect high on both—utilitarian and hedonic benefits.
comparisons are consistent with imagery processing, and this Apart from this, our study needed a product that was
will reduce perceived manipulative intent and create positive familiar to subjects. Six products (out of 30) scored high on
attitude toward the advertisement. both hedonic and utility consumption benefits (Voss et al.,
While processing indirect comparisons, it is likely that the 2003), the categories being mobile phones, digital cameras,
consumers activate the basic level category automatically laptops, two-wheelers, clothes, and television sets. From
because indirect comparisons do not identify the competitors these six, we chose the top three categories most commonly
explicitly. For example, consider the phrase “Skippy Peanut used by the respondents: mobile phones, digital cameras,
Butter has more protein than any other sandwich food.” and laptops. A pretest was conducted among 75 participants
In this case, consumers may infer that “Skippy” is the best (these respondents were different from the ones in the
sandwich food (Walker and Anderson, 1991). Recent research experiment) to identify an appropriate product and the
(Miniard et al., 2006) has shown that indirect comparisons attributes to be used for the stimuli. These participants rated
help the advertiser position the advertised brand against the their familiarity and involvement levels with the three
entire market. Hence, we posit the following: chosen product categories. Given the high familiarity and
usage levels among the respondents, the mobile phone
H1b: When consumers engage in imagery processing,
category was shortlisted. The study used the subjective
perceived manipulative intent will be lower in indirect
knowledge scale (Mitchell and Dacin, 1996) to measure
comparisons than in direct comparisons.
familiarity (i.e. how much a person thinks he or she knows
H2b: When consumers engage in imagery processing, about the product) and the purchase decision involvement
indirect comparative ads will have stronger Aad than direct (PDI) scale for involvement (Mittal, 1989). The study observed
comparative ads. a high involvement value of 5.6 for mobile phones. Appendix
A shows the scales and their respective reliabilities.
H3b: When consumers engage in imagery processing,
perceived brand differences will be higher in indirect
Stimuli
comparisons than in direct comparisons.
After selecting mobile phones as the product category, we
conducted another pretest with 37 respondents to understand
the specific attributes consumers consider important. The
METHOD pretest responses revealed that smart phones such as Apple
iPhone, BlackBerry Storm, Nokia 5800 Xpress Music, Nokia
In real markets, advertisers often use a combination of E71, and HTC Touch Diamond gratify both the hedonic and
several formats of advertising (noncomparative, direct compar- utilitarian needs of the consumers. Based on these responses,
ative, and indirect comparative advertising). If we had used a we introduced a new (fictitious) smart phone model as the
survey, isolating and measuring the effect of a particular stimulus in this study. For a high involvement category such
type of comparison strategy would not have been possible. as a smart phone, the reputation of the sponsored brand or the
Therefore, consistent with similar research in this area company plays a key role in the purchase decision. There-
(Miniard et al., 2006; Thompson and Hamilton, 2006; fore, the study used a well-known company name, Toshiba,
Chang, 2007), we use an experimental design for this study. to introduce a new model of smart phone. Toshiba had
launched Toshiba TG-01 in the United States in February
Participants and design 2009 (Cadden, 2009) but not in the Indian market. In order
We assigned 125 (Women = 49.6%, MeanAge = 19.5 years) to make the attributes comparable with other competitors
subjects randomly to four experimental conditions in a mentioned in the advertisement, the study upgraded the
2 (comparison formats: direct/indirect) * 2 (information model number to TG-03 in the manipulation. Hence, the

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 137

(Indian) respondents would have no preconceived bias with Procedures and measures
respect to this model, Toshiba TG-03. The study assigned participants randomly to the analytical
The advertisements in this experiment mirrored reality in and imagery conditions. After giving the information processing
terms of the tagline and the product attributes. In the adver- instructions, each participant was given a folder containing a
tisement, Toshiba TG-03 had Toshiba’s tagline, “Delivering print advertisement for the smart phone (Toshiba TG-03) and
the Best User Experience”. Again, based on the importance a questionnaire that they had to fill, postexposure. In both
attached to certain attributes mentioned in the pretest, the sets of conditions (analytical and imagery), participants were
study chose the top six attributes (slimmest body, least explicitly asked to process the advertisements for five minutes,
weight, highest display resolution, largest screen, highest and then they were asked to fill in the questionnaire applicable
camera resolution, and waterproof). The advertised brand, to that manipulation condition. The advertisements were not
Toshiba TG-03, had superior levels of these six attributes embedded with any other material.
relative to the referred-to brand(s). A set of two conditions The study adopted all scales for the dependent variables
were prepared, manipulating the comparison formats: direct from extant literature. The study measured analytical proces-
and indirect comparative ads. Kalro et al. (2010) revealed sing using a four-item scale from Mantel and Kardes (1999)
that approximately 70 per cent of the comparative ads were and imagery processing using a two-item scale from Shiv
“multibrand” (where the advertiser compares advertising and Huber (2000) to check if the manipulation of information
brand to multiple players in that category). Therefore, in this processing was effective. The study used “users of compari-
research, we compared Toshiba TG-03 to three leading players son brand” and “subjective product class knowledge of the
in the market, under both direct and indirect comparisons. consumers” regarding smart phones as covariates. Appendix
For the direct comparative advertisement, the study drew A shows all the scales used in the study.
comparisons against Apple iPhone, Nokia 5800 Xpress
Music, and BlackBerry, in a tabular format, claiming superi-
ority for Toshiba TG-03. According to a report by Mawston RESULTS
(2010), Apple iPhone was the market leader in the first
quarter of the year 2009. The other two brands followed Table 1 gives the distribution characteristics of the variables
Apple iPhone in terms of the market share. The indirect in the experiment.
comparative advertisement compared Toshiba TG-03 to Brand Appendix A displays the individual reliabilities of each of
X, Brand Y, and Brand Z (subtly referring to Apple iPhone, the scales, which were all well above acceptable levels.
Nokia 5800 Xpress Music, and BlackBerry, respectively, in
terms of their logos, fonts, and colors). As the experiment Manipulation check: Information processing
required manipulation of information processing modes, Participants engaged in more analytical processing in the
the advertisements had to contain a mix of experiential and analytical than in the imagery condition (Manalytical = 5.201,
nonexperiential information cues. Therefore, both text and Mimagery = 4.737; F(1,123) = 5.752; p < 0.05), and more imag-
table were included in the advertisement. The study varied ery processing in the imagery than in the analytical condition
only the text of the advertisements across the two conditions, (Mimagery = 4.941, Manalytical = 4.348; F(1,123) = 4.464; p < 0.05),
and all graphic elements were identical across the advertise- showing that our processing mode manipulation worked.
ments (see Appendix B for the advertisements). These two
comparative ad formats were common across both information Overall results
processing conditions, analytical and imagery. We conducted a 2 (comparison formats: direct/indirect) *
Note: All the respondents were users of cell phones, and 2 (information processing modes: analytical/imagery)
77 per cent of the respondents reported themselves high on MANCOVA with perceived manipulative intent, attitude
subjective knowledge in the category of smart phones. toward the advertisement, and perceived differences between
the brands as the dependent variables and two covariates,
Information processing instructions “users of comparison brands” and “subjective knowledge
Following the procedure outlined in Keller and McGill of the respondents”. As hypothesized, there is a significant
(1994) and Thompson and Hamilton (2006), we manipulated interaction between comparison formats and information
information processing by varying the instructions given to processing modes for all the dependent variables. The two-
participants about how they should process the advertisement way MANCOVA results are as follows: Pillai’s Trace = 0.260;
(see APPENDIX C for the instructions). Wilks’ lambda = 0.740; Hotelling’s Trace and Roy’s Largest

Table 1. Distribution characteristics of variables


Variable Minimum Maximum Mean Std. deviation
Information processing—analytical 1.750 7.000 4.982 1.099
Information processing—imagery 1.000 7.000 4.628 1.586
Perceived manipulative intent 1.000 6.000 3.251 1.013
Attitude toward the ad 1.000 7.000 5.356 1.211
Perceived brand differences 1.000 7.000 4.064 1.707
Subjective product class knowledge 1.200 7.000 5.169 1.190

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
138 A. D. Kalro et al.

Root = 0.352, F(3,117) = 3.725, p < 0.001, o2 = 0.233. The H1a stated that under analytical conditions, perceived
covariate “users of comparison brands” is not significant for manipulative intent would be lower in direct comparisons,
all four dependent variables (all p’s > 0.10). The covariate whereas H1b stated that under imagery conditions, perceived
“subjective knowledge of the respondents” is significant for manipulative intent would be less in indirect comparisons.
perceived manipulative intent and attitude toward the ad (all This two-way interaction was in the right direction and
p’s < 0.05) but not for perceived brand differences (p > 0.60). significant for perceived manipulative intent (F(1,119) = 8.34;
However, even after accounting for the significance of subjec- p < 0.01; o2 = 0.15), as seen in Figure 1. Under analytical
tive knowledge, the results were on expected lines. Hence, the processing, direct comparisons are perceived to be less manip-
covariates do not alter our results. Detailed results are reported ulative, and indirect comparisons are perceived as highly
in Table 2. manipulative (Manalytical-DCA = 3.37, Manalytical-ICA = 3.72). On
the contrary, under imagery processing, direct comparisons
are perceived highly manipulative and indirect comparisons
Two-way interaction on perceived manipulative intent are low on perceived manipulative intent (Mimagery-DCA = 3.22,
For perceived manipulative intent, the main effect of compar- Mimagery-ICA = 2.61).
ative advertising format was not significant (p > 0.40), but
the main effect of information processing modes was highly
significant (F(1,119) = 12.221; p < 0.001). This implies Two-way interaction on attitude toward the advertisement
that perceived manipulative intent of the advertiser using (Aad)
comparative advertisements is possibly high when consumers For attitude toward the advertisement, the main effects of
engage in analytical information processing (Manalytical = 3.55, comparative advertising formats and information processing
Mimagery = 2.92). This could possibly be because when modes were not significant (both p’s > 0.80). H2a stated that
subjects process analytically, they are in a critical frame of under analytical conditions, attitude toward the advertise-
mind, and since advertising in general is considered manip- ment would be high in direct comparisons, and H2b stated
ulative, they evaluate the advertisement negatively vis-à-vis that under imagery conditions, attitude toward the advertise-
those who process holistically will process information ment would be high in indirect comparisons. This two-way
less critically. interaction between comparative advertising formats and

Table 2. Tests of between-subjects effects


Source Dependent variable Type III sum of squares Df Mean square F Sig.
a
Corrected model Perceived manipulative intent 26.638 5 5.328 6.290 0.000
Attitude toward the advertisement 23.813b 5 4.763 3.582 0.005
Perceived brand differences 68.720c 5 13.744 5.586 0.000
Intercept Perceived manipulative intent 107.425 1 107.425 126.829 0.000
Attitude toward the advertisement 104.938 1 104.938 78.930 0.000
Perceived brand differences 83.723 1 83.723 34.030 0.000
Subjective_knowledge Perceived manipulative intent 6.736 1 6.736 7.953 0.006
Attitude toward the advertisement 8.897 1 8.897 6.692 0.011
Perceived brand differences 0.670 1 0.670 0.272 0.603
Users_comparison_brand Perceived manipulative intent 1.843 1 1.843 2.176 0.143
Attitude toward the advertisement 2.107 1 2.107 1.585 0.211
Perceived brand differences 1.562 1 1.562 0.635 0.427
Ad_format Perceived manipulative intent 0.546 1 .546 0.645 0.424
Attitude toward the advertisement 0.025 1 0.025 0.019 0.891
Perceived brand differences 0.268 1 0.268 0.109 0.742
Info_processing Perceived manipulative intent 12.221 1 12.221 14.429 0.000
Attitude toward the advertisement 0.005 1 0.005 0.003 0.953
Perceived brand differences 6.843 1 6.843 2.782 0.098
Ad_format * Info_processing Perceived manipulative intent 7.064 1 7.064 8.340 0.005
Attitude toward the advertisement 9.762 1 9.762 7.342 0.008
Perceived brand differences 57.264 1 57.264 23.276 0.000
Error Perceived manipulative intent 100.794 119 .847
Attitude toward the advertisement 158.213 119 1.330
Perceived brand differences 292.768 119 2.460
Total Perceived manipulative intent 1448.720 125
Attitude toward the advertisement 3768.633 125
Perceived brand differences 2426.000 125
Corrected total Perceived manipulative intent 127.432 124
Attitude toward the advertisement 182.025 124
Perceived brand differences 361.488 124
a
R-squared = 0.209 (adjusted R-squared = 0.176).
b
R-squared = 0.131 (adjusted R-squared = 0.094).
c
R-squared = 0.190 (adjusted R-squared= 0.156).

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 139

Figure 1. Perceived manipulative intent.

information processing modes was in the right direction brand differences is higher in analytical processing (Manalytical =
and significant for attitude toward the advertisement 4.305, Mimagery = 3.833; F(1,119) = 2.782; p < 0.10).
(F(1,119) = 7.34; p < 0.01; o2 = 0.13), as seen in Figure 2. We hypothesized that under analytical processing,
Under analytical processing, direct comparisons have perceived brand differences would be high in direct com-
high attitude toward the advertisement and indirect compari- parisons (H3a), and under imagery processing, perceived
sons have low attitude toward the advertisement (Manalytical- differences between the brands would be high in indirect
DCA = 5.64, Manalytical-ICA = 5.10). Similarly, the directions comparison (H3b). This two-way interaction was significant
under imagery conditions are as hypothesized. Under imag- for perceived brand differences (F(1,119) = 23.27;
ery processing, direct comparisons have low attitude toward p < 0.001; o2 = 0.35), in the hypothesized direction
the ad and indirect comparisons have high attitude toward (Figure 3). This implies that under analytical processing,
the ad (Mimagery-DCA = 5.06, Mimagery-ICA = 5.65). direct comparisons are perceived to create more differ
ences between the brands (Manalytical-DCA = 5.03, Manalytical-
Two-way interaction on perceived brand differences ICA = 3.58), and under imagery processing, indirect compari-
For perceived differences between the brands, the main sons are perceived to create more differences between the
effect of comparative advertising format was not significant brands than direct comparisons (Mimagery-DCA = 3.20, Mimagery-
(p > 0.70). The main effect for information processing ICA = 4.47).
modes is marginally significant, implying that perceived Table 3 summarizes the results of this experiment.

Figure 2. Attitude toward the advertisement (Aad).

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
140 A. D. Kalro et al.

Figure 3. Perceived brand differences.

Table 3. Summary of the results


Hypotheses Dependent variables Independent variables p Results
H1a and H1b Perceived manipulative intent Comparative advertising format 0.005*** Supported
H2a and H2b Attitude toward the ad (direct and indirect)  Information processing modes 0.008*** Supported
H3a and H3b Perceived brand differences (analytical and imagery) 0.000*** Supported

***Significant at p < 0.01.

DISCUSSION perceived differences between the brands. Under analytical


processing conditions, direct comparisons are more effective,
The results of this study show that the main effects of direct whereas under imagery conditions, indirect comparisons are
versus indirect comparative advertisements are not signifi- more effective.
cant. In other words, the results are consistent with previous One notable feature of this study is that we obtained large
findings (Pechmann and Ratneshwar, 1991; Jeon and Beatty, effect sizes for almost all effects. According to Cohen
2002; WoonBong et al., 2006) that the effectiveness of direct (1977), 0.01 ≤ o2 < 0.06 is a small effect, 0.06 ≤ o2 < 0.15
and indirect comparative advertisements is moderated by is a medium effect, and 0.15 ≤ o2 is a large effect. Fern
certain conditions. This article establishes that the mode of and Monroe (1996) also highlight the importance of report-
information processing as a moderating condition can either ing the effect sizes. Thus, these large effect sizes attest to
enhance or undermine the effectiveness of direct and indirect the practical significance of our results.
comparisons, depending on the interaction of comparative This research offers significant theoretical and managerial
advertising formats and the information processing modes contributions. From a theoretical viewpoint, it extends prior
that consumers use to encode the advertising message. The literature on two fronts.
results suggest that the information processing cues external First, this study identifies information processing modes
to advertisements can significantly influence consumers’ as one of the moderating variables that influence the effec-
reactions to comparative advertising, particularly consumers’ tiveness of direct and indirect comparative ads. An additional
perceived manipulative intent, attitude toward the advertise- point to note is that when consumers process analytically
ment, and perceived differences between the brands. (for example, for a utilitarian product like an electronic dictio-
The results demonstrate that under analytical processing, di- nary), Thompson and Hamilton (2006) advocate comparative
rect comparisons are perceived to be less manipulative vis-à-vis ads. However, a manager is not sure about whether to use
indirect comparisons. On the other hand, under imagery proces- direct or indirect comparative ads. This is because Thompson
sing, direct comparisons are perceived as highly manipulative and Hamilton (2006) use only direct comparisons. We show
and indirect comparisons are perceived as less manipulative. that it is indeed better to use direct comparisons as opposed
Further, the results show that perceived manipulative intent of to indirect ones, depending on the information processing
the advertiser using comparative advertisements is high when style of the consumer. Thus, this study extends their work
consumers engage in analytical information processing. by considering direct and indirect comparisons showing
The study finds similar results in the case of the other that under analytical (imagery) processing conditions, direct
dependent variables, attitude toward the advertisement and (indirect) comparisons work better. Most prior research has

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 141

investigated the effectiveness of direct comparative ads of the substantial sums that advertisers spend on comparative
over noncomparative ads. Even recent studies (e.g. Bei advertising (using direct and indirect comparisons simulta-
et al., 2011; Zhang et al., 2011) that look at audience neously) as part of their overall advertising strategy (Irani,
characteristics like self-construal and consumer product 2009; The Economist, 2009; Bijoor, 2010). For reaching
knowledge, respectively, consider only direct comparative out to analytical consumers, advertisers may use direct
ads versus noncomparative ads and omit indirect compari- comparisons. For consumers engaging in imagery proces-
sons. Hence, on the second front, this study contributes to sing, advertisers may design subtle, implicit comparisons
the limited literature studying direct versus indirect compar- against the competitors or the product category itself. In
ative ads (Brown and Jackson, 1977; Goodwin and Etgar, the industry, there are Web-based firms that may help
1980; Muehling, 1987; Pechmann and Ratneshwar, 1991; companies target customers based on personality and mindset
Walker and Anderson, 1991; Snyder, 1992; Jeon and related targeting (e.g. www.mindsetmedia.com). Managers
Beatty, 2002; WoonBong et al., 2006). can use these firms to identify customers who process predom-
We add to this stream of research by showing that mode inantly using analytical/imagery processing.
of processing also affects the effectiveness of comparison
formats. We show that advertising effectiveness depends on Limitations of this study and scope for future research
the degree of consistency between the consumer’s processing While our study makes some valuable contributions, it
mode (analytical versus imagery) and the comparative also has some drawbacks. One, there are many variations
advertising format (direct versus indirect). of indirect comparative ads (like “the leading brand,” “com-
Managerially as well, this study provides interesting pared to Brand X,” “industry average,” “other brands,” or “all
insights to advertisers and brand managers. This study shows other brands” and so on). Our theory and manipulation may
that, depending on the objective of the advertising campaign, hold good only for indirect comparisons that are not concrete
an advertiser should choose the appropriate comparative (e.g. “compared to the other brands” and so on). However,
advertising format under different information processing indirect comparisons like “compared to the leading brand”
modes of the consumers. The key takeaways for advertisers may be concrete for many consumers. In other words, this
are that under analytical processing, direct comparisons are study tests for only one kind of indirect comparison, i.e.
perceived to be less manipulative; they enhance attitude “among other brands” (Brand X, Y, and Z while subtly referring
toward the advertisement and create perceived differences to three leading brands with their logo and color). As stated by
between the brands. On the other hand, under imagery Walker and Anderson (1991), generalizing conclusions across
processing, advertisers may use indirect comparisons, as varying formats of indirect comparative ads is difficult; the
consumers perceive these as less manipulative. The results recommendations of this study may not hold good without
suggest that under imagery processing, indirect compari- testing for the same. Hence, future research can look at
sons enhance attitude toward the advertisement and help how consumers process information across these various
the sponsored brand position itself against the entire indirect comparison formats (particularly, “compared to the
market by creating differences between the advertising leading brand”) versus direct comparisons. Two, we did not
brand and the product category itself. In sum, therefore, look at product (e.g. durable versus FMCG) and situational
advertisers may use direct comparisons under analytical factors (e.g. time pressure, buying for self versus buying for
processing conditions and indirect ones under imagery others) that may influence the effectiveness of direct versus
processing conditions. indirect comparisons. Three, we did not model the type of
Analytical processing is usually associated with utilitarian appeal (negative versus positively framed appeals) in compar-
products. This is because consumers buy utilitarian products ison formats. Recent research (Putrevu, 2010) shows that this
for some instrumental benefits and not for sensory gratifica- has an impact on advertising effectiveness. It would also be
tion. Consumers would then like to think about the various interesting to study the interaction between all these factors
attributes and trade-offs and not visualize the product experi- or at least some of these on the effectiveness of direct and
ence. Consumers with high need for cognition (NFC) may indirect comparisons. Four, we did not consider real-world
engage in analytical processing as well. High NFC consumers sales data for brands that use direct and indirect comparisons;
like to think through their purchases carefully (Levin et al., it would have been ideal to validate our results with sales
2000). Therefore, for utilitarian products as well as high data. Five, in reality, respondents do not process ads for
NFC consumers, advertisers may use direct comparisons. On five minutes. However, they are bombarded with multiple
the other hand, hedonic products may be associated with exposures of the same advertisement and sometimes through
imagery processing since consumers may like to visualize various media (TV, print, Internet) as well. As we could not
the product experience and low NFC consumers may engage do this (i.e. repeated exposures and using multiple media),
in imagery processing. we asked respondents to process the ads for five minutes.
In reality, consumer markets are not homogeneous, and Finally, Thompson and Hamilton (2006) studied comparative
consumers who engage in imagery processing coexist versus noncomparative ads while we considered direct versus
with consumers who engage in analytical processing. This indirect comparisons. Future research can extend our work
study provides suggestions to advertisers to design different by studying the issues that we suggest and by answering the
comparative advertising messages for consumer segments question: under conditions of analytical/imagery processing,
engaging in different information processing modes for which works better: noncomparative advertising, direct
optimal results. This will help determine the effectiveness comparisons, or indirect comparisons?

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
142 A. D. Kalro et al.

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Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
144 A. D. Kalro et al.

APPENDIX A SCALES (RELIABILITIES)

Perceived manipulative intent of the advertiser adapted from Chang (2007) (originally from Campbell, 1995; a = 0.702)

Indicate your agreement/disagreement by circling the numbers given along.


Strongly Somewhat Somewhat Strongly
disagree Disagree disagree Neutral agree Agree agree
The way this advertisement tries to persuade people seems 1 2 3 4 5 6 7
acceptable to me
The advertiser tried to manipulate the audience in ways that I 1 2 3 4 5 6 7
don’t like
I was annoyed by this advertisement because the advertiser 1 2 3 4 5 6 7
seemed to be trying to inappropriately manage or control the
consumer audience
I didn’t mind this advertisement: the advertiser tried to be 1 2 3 4 5 6 7
persuasive without being excessively manipulative
This advertisement was fair in what was said and shown 1 2 3 4 5 6 7
I think that this advertisement is unfair 1 2 3 4 5 6 7
The first, fourth, and fifth item were reverse-coded.
a

Attitude toward the advertisement (Aad) (combined from Dröge, 1989, and Muehling, 1987; a = 0.896)

What do you think about the advertisement?


Bad 1 2 3 4 5 6 7 Good
Unattractive 1 2 3 4 5 6 7 Attractive
Negative 1 2 3 4 5 6 7 Positive
Unfavorable 1 2 3 4 5 6 7 Favorable
Offensive 1 2 3 4 5 6 7 Inoffensive
Dull 1 2 3 4 5 6 7 Interesting
Irritating 1 2 3 4 5 6 7 Not irritating

Perceived brand differences adapted from Gorn and Weinberg (1984) (single item)

Do you think the advertised brand and the competitor’s brand are similar or different?
Very similar 1 2 3 4 5 6 7 Very dissimilar

Information processing (manipulation check for the experiment)

(a) Analytical processing adapted from Mantel and Kardes (1999) (a = 0.733)
You tried to use as much information about the features as possible
Strongly disagree 1 2 3 4 5 6 7 Strongly agree
You carefully compared Toshiba TG-03 to the other brands, on several different features
Strongly disagree 1 2 3 4 5 6 7 Strongly agree
Your evaluations were based on factors rather than on general impressions and feelings
Strongly disagree 1 2 3 4 5 6 7 Strongly agree
Your evaluations were based on careful thinking and reasoning
Strongly disagree 1 2 3 4 5 6 7 Strongly agree

(b) Imagery processing adapted from Shiv and Huber (2000) (a = 0.791)
Indicate the extent to which you imagined yourself using Toshiba TG-03
Not very much 1 2 3 4 5 6 7 To a great deal
Indicate the extent to which you tried to form a picture of yourself using Toshiba TG-03 when making your choice
Not very much 1 2 3 4 5 6 7 To a great deal

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 145

Subjective knowledge adapted from Mitchell and Dacin (1996) (a = 0.874)


How familiar are you with mobile phones?
Not familiar at all 1 2 3 4 5 6 7 8 9 Extremely familiar
How clear an idea do you have about the various characteristics of mobile phones/digital cameras/laptops that are important in providing you
maximum usage satisfaction?
Not very clear 1 2 3 4 5 6 7 8 9 Very clear
I know a lot about mobile phones/digital cameras/laptops
Disagree 1 2 3 4 5 6 7 8 9 Agree
How would you rate your knowledge about mobile phones/digital cameras/laptops relative to the rest of the population?
One of the least knowledgeable people 1 2 3 4 5 6 7 8 9 One of the most knowledgeable people
How interested are you in mobile phones/digital cameras/laptops?
Not very interested 1 2 3 4 5 6 7 8 9 Very interested

Hedonic/Utility scale adapted from Voss et al. (2003) (a = 0.805)

Indicate your agreement/disagreement by circling the numbers given along.


Ineffective 1 2 3 4 5 6 7 Effective
Not fun 1 2 3 4 5 6 7 Fun
Unhelpful 1 2 3 4 5 6 7 Helpful
Dull 1 2 3 4 5 6 7 Exciting
Not functional 1 2 3 4 5 6 7 Functional
Not delightful 1 2 3 4 5 6 7 Delightful
Unnecessary 1 2 3 4 5 6 7 Necessary
Not thrilling 1 2 3 4 5 6 7 Thrilling
Impractical 1 2 3 4 5 6 7 Practical
Unenjoyable 1 2 3 4 5 6 7 Enjoyable

Purchase decision involvement (PDI) adapted from Mittal (1989) (a = 0.795)


In selecting from many types and brands of this product available in the market, would you say that
I would not care at all as to which one I buy 1 2 3 4 5 6 7 I would care a great deal as to which one I buy
Do you think that the various types and brands of this product available in the market are all very alike or are all very different?
They are alike 1 2 3 4 5 6 7 They are all different
How important would it be to you to make a right choice of this product?
Not at all important 1 2 3 4 5 6 7 Extremely important
In making your selection of this product, how concerned would you be about the outcome of your choice?
Not at all concerned 1 2 3 4 5 6 7 Very much concerned

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
146 A. D. Kalro et al.

APPENDIX B ADVERTISING STIMULI AD 1

(DIRECT COMPARATIVE) and AD 2 (INDIRECT COMPARATIVE)

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb
Comparative ads: Role of information processing modes 147

APPENDIX C INFORMATION PROCESSING mobile phone (Toshiba TG-03) and think about how the
INSTRUCTIONS attributes would meet your needs.”
In the analytical condition, the study asked participants to In the imagery condition, the study asked participants to try
process the smart phone and its attributes in a logical way to visualize the smart phone and to imagine their experience
by evaluating the attributes and benefits of the advertised with the smart phone. The instructions for imagery processing
brand against that of the competitor(s). The instructions for were as follows:
analytical processing were as follows:
“We do request that you rely on your imagination in
“We do request that you be careful and well-reasoned in making your choice. Try to picture the mobile phone
your choice. Don’t let your imagination get the better of (Toshiba TG-03) in your mind and to imagine as vividly
you. Rather, try to make a logical choice that’s right for as possible your experience with the smart phone,
you. Focus on the attributes and benefits of the advertised Toshiba TG-03.”

Copyright © 2013 John Wiley & Sons, Ltd. J. Consumer Behav. 12: 133–147 (2013)
DOI: 10.1002/cb

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