CMN3174 Chapter Notes - Chapter 0: Risk Neutral, Adverse Selection, Psychological Contract
Document Summary
Advertiser risk taking, campaign originality and campaign performance (p. 42-47 and 50-51) 2 important issues: 1) advertiser"s risk preference needs to be both original and relevant, 2) management of agency"s creative process. Advertisers can influence agency creativity by: setting directions, allocating resources, providing performance evaluating guidelines. Ads remain the wild west of business processes they should place more emphasis on the originality then on market performance but this is hard as the money directs ads. Sharma (1997) principle principal-agency relationship, with agencies becoming the more powerful of the relationship. 2 purposes: 1) explore the role advertisers play in the development of original campaigns, 2) identify the best means to encourage agency creativity. Researchers agree on one component originality (campaign originality) For a work to be seen as creative it must also be: unconventional, novel, unexpected, untried, appropriateness. Appropriateness the relevance and usefulness of an idea to the task at hand; depends on task and objectives; subject to cultural influences.
