The Effects of Different Advertising Appeals Towards Generation Y.

CHAPTER 1

1. Research Background

In recent years, advertising online through the web and social media has become a rising trend in the advertising industry. However, traditional media channels have yet to be completely replaced in Malaysia. In a research done by the Malaysian Communications and Multimedia Commission (2009), there is a rising 10% growth of spending on advertising in the Asia-Pacific region in the coming years. Hence, showing that the advertising industry is a rising corporate force and that advertising is an important aspect in today’s marketing world. The ever-growing advertising industry has also begun to shape their advertisements to better suit consumers from Generation Y. Generation Y, also known as the Millennials, are born between 1981 to 2000 (Arsenault, 2003). In a research done by Loroz and Helgeson (2013), consumers from Generation Y tend to have positive attitudes toward almost every type of advertising appeal. Furthermore, members of Generation Y have more traditional values, such as preferring advertisements that: emphasized the function of the product as opposed to product image; preferred reasonable-priced goods rather than over-priced goods; favoured romantic themes in advertising as compared to sexual themes; desired advertisements with a sharing experiences as opposed to self-experience; and advertisements that are socially responsible and environmentally conscious (Reisenwitz and Iyer, 2009).

1. Research Justification

This research will focus on advertising appeals and their effectiveness in attracting the attention of Generation Y, because there is a lack of recent studies and research about the topic. In addition to not having many recent studies, there is also limited studies about advertising for Generation Y in particular. In the future, Generation Y will become the advertising industry’s main spenders as there are approximately 76 million members of Generation Y in the United States alone, with millions more around the world. This makes Generation Y one of the largest generational cohort in the world after Generation X (Kennedy 2001). Moreover, as Generation Y graduates and enters the work force, their earning potential will double, making them a powerful consumer group (Taylor and Cosenza, 2002).Thus, this generation will continue to be a substantial part of the population for many years to come. The advertising industry is one of the fastest growing industries in the world, therefore, this research is important as it will provide the necessary knowledge for advertising agencies to determine which advertising appeal is effective in attracting consumers from Generation Y.

1. Aim: To discover the many different advertising appeals that exist in the advertising industry.

1. Objective: To find out which advertising appeal is effective in attracting the attention of Generation Y.

1. Research Questions

1. How does sex, humour, and fear appeal affect Generation Y emotionally?
2. Which medium does Generation Y search for advertisements?
3. Who benefits from this research?
4. Why is it important to study different advertising appeals?
5. What are the effects of these advertising appeals on collectivistic societies?
6. What type of sex, humour, and fear appeal is the most effective in attracting the attention of Generation Y?

1.6.        GAP

         Sawang (2010) found that sex appeal was effective in advertising depending on the culture of the consumers. Findings from Chung and Ahn (2013) concluded that fear appeal was an effective advertising appeal, but only in collectivistic societies. Humour appeal was effective in advertising, but also risky when applying into advertisements as different people, cultures, and societies have different tastes when it comes to comedy (Riecken and Hensel, 2012). However, there was no intensive research done on all three advertising appeals, and their effects on Generation Y specifically. Moreover, there were limited researches on advertising appeals done in Southeast Asia. Therefore, this research is to find out about the effectiveness of advertising appeals towards Generation Y.

1.7.        Contribution of Knowledge

        This research will help marketers and advertising agencies to better understand the current advertising preferences of Generation Y and help predict future advertising preferences and trends. Moreover, it will help adapt the advertising industry to better suit today’s modern generation. Furthermore, it will aid advertising agencies choose the best advertising appeal for their advertisements in order to attract the attention of their Generation Y consumers. Marketers and advertising agencies will be able to understand basic consumer behaviour and how they can influence the purchasing decisions of their Generation Y consumers. In addition, these agencies will better understand the consumer behaviour towards advertising appeals in Southeast Asia.

CHAPTER 2

2.1.        Dependent Variable: The effectiveness of different advertising appeals towards Generation Y

2.2.        Independent Variables: 

1. Sex appeal,
2. Humour appeal,
3. Fear appeal

2.3.        Literature Review

2.3.1.        Effectiveness of Advertising Appeal towards Generation Y

                        Most researches have difficulties in determining which advertising appeal is effective in attracting the attention of Generation Y. This is because it is hard to draw a conclusion from a population as large as Generation Y (Sullivan and Heitmeyer, 2008). Moreover, Generation Y has a high level of racial and ethnic diversity (Wolberg and Pokrywczynski 2001), each with their own unique values, attitudes, and characteristics. Nevertheless, the members of Generation Y can be generalised as they display some similar attitudes toward advertisements. Based on Generation Y’s value and lifestyle segments, Valentine and Powers (2013) concluded that Generation Y place high importance on issues such as individualism and social responsibility. When purchasing a product, they tend to gravitate towards advertisements that are more unique, with traces of their own characteristics that serve as a form of self-expression (Gupta et al., 2010). Moreover, the majority of Generation Y responded more positively toward advertisements that are socially responsible and will likely pay more attention to the message of the company (Cone, Inc., 2006). Members of Generation Y place a great deal of importance on social responsibility because they are more tolerant, and better travelled than their parents, who belong in Generation X. Generation Y is more educated on the tribulations of the world. Thus, this generation is supportive of social causes and socially responsible companies (Furlow, 2011).In addition to that, Cambal, M. and Zibrinova, E. (2011) highlighted that Generation Y was surrounded by the vast amount of advertisements, thus the researcher suggests they shall be reached with stylish, informative and entertaining advertisements that reflect on their lifestyle. Those who are born in Generation Y, tend to be more open-minded (Paul 2001). However, some percentage of the population is slightly sensitive to certain types of advertisements. Advertisements that are controversial or promotes controversial products, are likely to have negative responses from Generation Y; rather than attracting their attention, the advertisement may deter them. Some examples of controversial advertisements include: promoting alcoholic beverages, female hygiene products, etc. (Ting and Run, 2012). In conclusion, advertising appeals that are unique, individualistic, and socially responsible are effective in attracting the attention of Generation Y; conversely, advertisers should take into caution the type of advertisements they are producing, as a small percentage of Generation Y is sensitive to certain controversial topics.