||The Role of Business Longevity and Framing on the Effectiveness of Financial Product Advertisement - Moderating Effects of Regulatory Focus
||Institute of International Management (IIMBA--Master)(on the job class)
Attitude toward the Advertisement
Attitude toward the Brand
As of 2007, Taiwan ranked 37th on the world ranking for GDP per capita (nominal). There’s an increasing need of investment accompanied by the rising GDP in Taiwan. To meet this trend, the government started allowing its people to invest in mutual funds and bonds via banks in 1986. But regrettably, up to 70% of- individual investors investments were not successful.
Hence, this study tries to explore the factors that affect fund investors’ decision making from a marketing viewpoint. Previous literature shows that informing customers about the year of a business is established is quite common. And when businesses point out the framed outcome, either potential losses or gains will greatly affects people’s choice and behavior. Moreover, since financial products are closely connected with risk, gain and loss, thus investors’ risk propensity (regulatory focus) is also taken into study as a moderator and it is combined with business longevity and message framing to find out their effects on investors’ attitude and investment intention.
Therefore, the 2 (business longevity: long and short) x 2 (message framing: positive and negative) between-subject factorial design were conducted with one hundred and twenty individual fund investors in Taiwan as subjects. The subjects’ regulatory focus inclination (promotion and prevention) was also investigated.
The analytical results suggest that investors will have more positive attitude toward the advertisement if the business is long-established and while the message is positively framed. Contrarily, investors tend to have less favorable attitude toward the advertisement (Aad) and the brand (Ab) when the business is newly established and the message is negatively framed. Meanwhile, the results verify that investors will have more positive Ad if they have positive Aad. Moreover, investors will have more positive behavioral intention (to invest and to recommend) when they have favorable Aad and Ab. Finally, the results also testify that regulatory focus acts as a moderator for individual investors’ attitudes, that is, even though the business is newly established or the message is negatively framed, investors still tend to have more favorable Aad and Ab when they are promotion- rather than prevention-inclined.
The results of this study can be used as a reference for individual investors about how mental accounts influence they attitude toward Aad and Ab, and then they can make more rational investment decisions accordingly. For marketing managers and advertisers the analytic results can help them to create valid print advertisements and to determine their target segment.
TABLE OF CONTENTS IV
LIST OF TABLES VIII
LIST OF FIGURES X
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation. 1
1.2 Research Objectives and Contributions. 5
1.3 Scope of the Study. 6
1.4 Research Procedure. 6
1.5 The Structure of this Study. 7
CHAPTER TWO LITERATURE REVIEW 9
2.1 Regulatory Focus Theory. 9
2.2 Prospect Theory. 14
2.3 Definition of Research Constructs. 15
2.3.1 Business Longevity. 15
2.3.2 Framing. 16
2.3.3 Regulatory Focus. 19
2.3.4 Attitude toward the Advertisement. 20
2.3.5 Attitude toward the Brand. 22
2.3.6 Behavioral Intention (Intention to Invest). 23
2.4 Hypotheses Development. 25
2.4.1 Main Effects of Business Longevity, Framing and Attitude toward the Advertisement and Attitude toward the Brand. 25
2.4.2 Interrelationship among Attitude toward the Advertisement, Attitude toward the Brand and Behavioral Intention. 29
2.4.3 The Moderating Effect of Regulatory Focus. 32
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 35
3.1 Conceptual Framework of the Study. 35
3.2 Summary of Research Hypotheses. 36
3.3 Research Design. 36
3.4 Stimulus Development. 37
3.5 Manipulation Check of Independent Variables. 38
3.5.1 Business Longevity. 38
3.5.2 Framing. 40
3.5.3 Regulatory Focus. 42
3.6 Measurements of Dependent Variables. 43
3.6.1 Attitude toward the Advertisement. 43
3.6.2 Attitude toward the Brand. 44
3.6.3 Behavioral Intention (Investment Intention). 44
3.7 Questionnaire Design. 45
3.8 Sample Plan. 46
3.9 Main Study. 46
3.10 Data Analysis Procedure. 47
3.10.1 Descriptive Statistic Analysis. 47
3.10.2 Purification and Reliability of the Measurement Variables. 47
3.10.3 Independent Sample t-Test. 48
3.10.4 Paired Sample t-Test. 48
3.10.5 Analysis of Variance (ANOVA). 49
3.10.6 Regression Analysis. 49
CHAPTER FOUR DESCRIPTIVE AND RELIABILITY ANALYSIS 51
4.1 Descriptive Analysis. 51
4.1.1 Characteristics of Respondent (Experimental Group). 51
4.1.2 Measurement Results for Relevant Variables. 53
4.2 Factor Analysis and Reliability Test. 56
4.2.1 Regulatory Focus. 56
4.2.2 Attitude toward the Advertisement. 57
4.2.3 Attitude toward the Brand. 58
4.2.4 Behavioral Intention. 58
4.3 Control Group Analysis. 59
4.3.1 Measurement Results for Relevant Variables. 60
4.3.2 The Different Results between Experimental Group and Control Group. 62
4.4 Correlation Matrix for All Constructs. 63
CHAPTER FIVE RESEARCH ANALYSIS AND RESULTS 66
5.1 Differences between Factors of Research Construct. 66
5.1.1 The Effect of Business Longevity. 66
5.1.2 The Effect of Message Framing. 67
5.2 The Interaction Effects of Business Longevity and Message Framing. 68
5.3 Relationship among Attitude toward the Advertisement, Attitude toward the Brand, and Behavioral Intention. 71
5.3.1 The Effect of Attitude toward the Advertisement on Attitude toward the Brand. 71
5.3.2 The Effect of Attitude toward the Advertisement on Behavioral Intention. 71
5.3.3 The Effect of Attitude toward the Brand on Behavioral Intention. 72
5.4 The Moderating Effect of Regulatory Focus on Attitude toward the Advertisement, Attitude toward the Brand. 73
CHAPTER SIX CONCLUSION AND SUGGESTIONS 77
6.1 Research Conclusion. 77
6.2 Implications and Suggestions. 80
6.2.1 Implications for Marketers and Fund Individual Investors. 80
6.2.2 Implications for Academic Researchers. 81
6.3 Limitations and Future Research Directions. 82
Appendix 1: Stimuli in the Pilot Study and Experiment 92
Appendix 2: Questionnaire for Pilot Study and Experiment 102
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