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Advertising versus Sales Promotion: An Examination of the Japanese Food Industry, 1976-2008
Changju Kim,Yingzi Xu,Kenneth F. Hyde 한국마케팅과학회 2011 마케팅과학연구 Vol.21 No.4
The issue of increasing sales promotion at the expense of advertising has been examined with growing concern over the last two decades. This study provides an exploratory analysis of the issues of allocation of marketing communication budget in the Japanese food industry: advertising for the long-term versus sales promotion for the short-term. Based on data collected from Nikkei Need-FinancialQUEST (Nikkei Digital Media, 2011), an increase in marketing budget allocated to sales promotion relative to advertising was observed in a time series analysis study from 1976 to 2008. The use of sales promotion budget has a two-fold effect on financial performance: the sales promotion budget is positively related to sales volumes and negatively related to profitability. Managerial implications of these findings and areas for future research are discussed. Research shows the weakened power of traditional advertising in a diversified media environment; the growth rate differential of sales promotion relative to advertising has become noticeable in recent years (Kim, 2010; Li, Lee, Lee, and Griffin, 2011). However, in spite of qualitative and quantitative research in the last two decades, there is a gap concerning the outcomes of advertising and sales promotion budget allocation decisions in the industrial sector. The aim of this article is to give a better understanding of whether the paradigm shift in budget allocation from advertising to sales promotion exists, and if this is the case, how marketing firms’ financial performance is affected in regards to sales volume and profitability. To address these issues, this study examines the budget allocation decisions for advertising and sales promotion from the perspective of short-term versus long-term objectives (Quelch, 1983; Achenbaum and Mitchel, 1987; Buzzell, Quelch, and Salmon, 1990; Jones, 1990; Low and Mohr, 1999, 2000; Rossiter and Percy, 1997). The issue of increasing sales promotion at the expense of advertising has been viewed with growing concern by both practitioners and academics over the last two decades. In this context, considerable attention has been paid to the fundamental changes in the advertising-to-sales promotion ratio (Quelch, 1983; Johnson, 1988; Buzzell, Quelch and Salmon, 1990; Messinger and Narasimhan, 1995; Ailawadi, 2001). Partly as a result of the growing buying power of retailers, manufacturers have been reducing their commitment to advertising activities and spending much more on trade promotion and consumer promotion. The rapid growth in the relative proportion of trade promotion compared to total sales promotion is remarkable. This study seeks to identify the changes in the relative emphasis on communication strategy at the industry level in Japan over an extended period of time. Therefore, we propose:H1: The proportion of the marketing communications budget allocated to sales promotion, versus advertising, has increased in Japan. H2: The proportion of the marketing communications budget allocated to sales promotion increased sharply around the time of the collapse of the bubble economy in 1991. In regard to consumer package goods manufacturers, the growth rate of sales volume may be lower than of the growth rate for sales promotion (Teramoto, 2001). This is not surprising due to the saturated market in Japan. A short-term perspective is defined as the degree to which management emphasizes short-term objectives and tasks, generally one year or less, and thus encourages short-term results (Burke, 1984; Rossiter and Percy, 1997). The short-term results of a sales promotion strategy are illustrated in an increase in sales volume. Yet the effect of sales promotions on sales volume does not last particularly long. This is because the carry-over effects of sales promotions are relatively low, compared with the level of purchase during the promotion period (Cotton and Babb, 1978). Often a company using sales promotion aggressively has a difficult time selli...
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Cai Xue,Li Guohong,Feng Haixia,Wang Xiaoyan,He Lijun,Luo Dan,Xu Cuirong,Huang Yingzi,Qiu Shanhu 대한신경정신의학회 2023 PSYCHIATRY INVESTIGATION Vol.20 No.4
Objective Depression was common during coronavirus disease-2019 (COVID-19) pandemic, while the association of perceived stress with depression among vaccinated healthcare workers has not been investigated. This study aimed to address this issue.Methods We included a total of 898 fully vaccinated healthcare workers during the outbreak of severe acute respiratory syndrome coronavirus 2 Delta variant in Nanjing, 2021. Depression was ascertained by Patient Health Questionnaire-9, with a cut-off score of ≥5 indicative of mild-to-severe depression. Perceived stress, resilience, and compassion fatigue were assessed by Perceived Stress Scale-10, Resilience Scale-25, and Professional Quality of Life Scale version-5, respectively. Logistic regression analyses were used to estimate the odds ratio (OR) and 95% confidence interval (CI), along with subgroup and mediation analyses.Results The prevalence of mild-to-severe depression was 41.1% in vaccinated healthcare workers. The odd of mild-to-severe depression was increased with higher perceived stress. Compared with vaccinated healthcare workers with the lowest tertile of perceived stress, those with the highest tertile had increased odds of mild-to-severe depression by 120% (OR 2.20, 95% CI 1.46 to 3.31) after multivariable-adjustment. However, perceived stress was not associated with mild-to-severe depression in vaccinated healthcare workers with strong resilience, but was in those with weak resilience (p<sub>interaction</sub>=0.004). Further analysis showed that compassion fatigue mediated the relationship between perceived stress and mild-to-severe depression, with a mediating effect of 49.7%.Conclusion Perceived stress was related to an increased odd of mild-to-severe depression in vaccinated healthcare workers during COVID-19 pandemic, and this relationship might be explained by compassion fatigue.
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