Report R2.12 Research on Advertising and Entrepreneurship Seminar Leader: Subodh Bhat sbhat[at]sfsu.edu The seminar was illustrative of how problems are chosen in current business research and how researchers typically zero in on a particular method to be adopted for a study. In this context, the following three studies were presented: * Heterosexual Consumers’ Responses to Homosexual Imagery in Ads. * Consumers’ Reaction to the Portrayal of Interracial Couples in Ads. * What Drives Indian High-tech Entrepreneurs in the US? Part 1 One of the characteristics of our present times seems to be the ubiquity of advertisements in one form or other. For example, the average American is exposed to 600 to 1000 ads per day. The battle for attention has sometimes led advertisers court controversy, intentionally or otherwise. Advertisers generally assume that processing of ad content and imagery by their audience is homogeneous. However, a few qualitative and small-sample studies have observed that individuals process information in ads differently because of differences in prior attitude or prejudice towards an issue. Two studies on controversial advertisements were discussed in this context. These sought to extend prior research on how a majority group reacts to ads that portray minority groups. The hypotheses for the first study were that heterosexual consumers’ attitude towards homosexuality would moderate their reaction to ads depicting male homosexuals and that emotions would mediate the effect of ad imagery on attitude to the ad and the brand. In the context of the study under discussion, the Seminar Leader differentiated between three types of intervening variables. A confounding variable is one, other than the designated independent variable, that influences the dependent variable profoundly. A mediating variable is one that acts as a link between the independent and dependent variables. A moderating variable intensifies or weakens the relationship between two other variables. 317 college students of whom 245 classified themselves as heterosexual were randomly exposed to a print ad depicting either a homosexual or a heterosexual couple. Cognitive and emotional responses were recorded using various scales. These were analysed to reveal 3 dominant categories of reactions, namely, approval (positive emotions), disapproval (negative emotions), and surprise. Through an analysis using Baron and Kenny’s (1986) approach, the researchers found that heterosexual consumers’ attitude towards homosexuality would moderate their reaction to ads depicting male homosexuals and that emotions would mediate the effect of ad imagery on attitude to the ad and the brand. The study extended prior research by going beyond purely demographic categories to groupings based on lifestyle choices. The moderating factor here was tolerance towards the out-group rather than affiliation within one’s own group, as studied earlier. Part 2 The second study presented was an ongoing project that explores the reaction of consumers to the depiction of interracial couples in advertisements. The pilot study followed an exploratory approach and gathered data on thoughts, feelings and attitudes of consumers towards these advertisements. Content analysis of this qualitative data found the following: * Majority (73%) of comments by respondents concerning the ads featuring mixed-race couples were relationship related. * On the other hand, the majority of comments (72%) about ads featuring same-race couples were product related. However, analysis of responses concerning believability of the relationship of the couples portrayed and the perceived intimacy of these couples did not reveal any predominant patterns. The study aims to further investigate the following: a. Would an interracial couple in an ad be more salient in a predominantly uni-racial community than in a multiracial community? b. Would an ad with an interracial couple be better received among individuals with greater exposure to interracial couples? c. Would a more favourable attitude toward interracial relations, result in a more favourable attitude toward an ad with an interracial couple? d. Is the attitude toward an interracial couple the sum, multiplicative product, or average of the attitudes toward the individual races involved? Part 3 The third study examined the motivations, support systems, networks, attitudes and behaviours of Indian high-tech entrepreneurs in the US. The exploratory study in this case consisted of 24 interviews targeting a wide range of entrepreneur interviewees. Questions were based on, but not restricted to, traditional entrepreneurial frameworks of risk, networks, traits, and processes. A pattern analysis revealed some of the most common factors behind the success of these entrepreneurs. These were entrepreneurial drive, lack of perceived glass ceiling, competitive spirit, lower risk perception, intellectual interest, fiscal conservatism, and family tradition. Facilitating factors cited by the respondents included the importance attached to education in India, curiosity, family support, education and work experience in the US, and existence of formal and informal networks and role models. Negative factors mentioned were factionalism, excessive focus on technology per se and comparatively low levels of communication and marketing skills. Based on the exploratory study, a web-based survey was carried out. An analysis of 80 usable responses from broad sectors of high-tech industry revealed that autonomy, financial rewards and impact on industry were the most widely recognized rewards of entrepreneurship. A good researcher is aware of the limitations of her/his study. Like other approaches, quantitative studies of the kind illustrated above operate with a number of constraints. At the data gathering stage these can include the presence of biases as a consequence of self-reporting, and problems associated with retrospective reporting. The instruments used for gathering data also influence the quality of data at this stage. At the analysis stage, a potential problem could be the assumption of linearity of relationship between the variables studied. References Bhat, S., Leigh, T., & Wardlow D. (1998). The impact of consumer prejudices on ad processing: heterosexual consumers’ responses to homosexual imagery in ads. Journal of Advertising, 27(4), 9-28. Bhat, S., Leigh, T., & Wardlow D. (1996). The effect of homosexual imagery in advertising on attitude toward the ad. Journal of Homosexuality, 31(1, 2), 161-176. Bhat, S., & McCline, R. (2001, March). Opportunity framing and networks: an empirical investigation of the role of social context in explaining venture creation by high tech entrepreneurs. Paper presented at The International Applied Business Research Conference, Cancun, Mexico.
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