Comparative vs. Non-Comparative Advertising: Samsung & Apple

This report analyzes the effectiveness of comparative versus non-comparative advertising strategies, using the campaigns of Samsung and Apple as case studies. The introduction highlights the increasing importance of advertising in a competitive market and the mixed results reported in previous research on comparative advertising. The literature review explores comparative advertising, its advantages, challenges, and how it contrasts with non-comparative advertising, with applications to Apple and Samsung. The research methodology outlines the tools and techniques used for data analysis. The data analysis section includes findings and interpretation of the advertising campaigns of both companies. The study investigates the impact of both advertising approaches, considering the impact of factors like brand image, information content, and consumer perception. The conclusion summarizes the findings and offers recommendations regarding the optimal use of comparative and non-comparative advertising. The report aims to identify which advertising approach is more effective in reaching target audiences and driving sales, considering the specific strategies employed by Samsung and Apple in their marketing efforts. The report also includes the definition and approaches of non-comparative advertising.

Analysing the Comparison between Effectiveness
of Comparative Advertising and Non-
Comparative Advertising –
A Case Study on the Campaigns of Samsung &
Apple

Abstract
Advertising is becoming the most important part of any organisation as it helps them in
gaining customer loyalty. It is one of the best technique by which companies can motivate more
number of customers to purchase their products. In the present study the main research issue is
an increasing demand of customers in today’s highly competitive environment. Previous research
studies on this subject had reported mixed results. Most of them have shown that comparative
advertising has responded very negatively. The purpose of this research is to identify which type
of ads are more effective, comparative or non-comparative. From the above research it has been
concluded that advertising is the best and most common platform through which organisations
can reach out to their target audience. With the help of better advertising techniques companies
can motivate more number of customers to purchase their products. From the whole study it has
been identified that comparative advertising has one more major challenge that companies might
have to face and that is maintaining the image in market. Competitors always try to lead and
show the superiority of their brand.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Introduction............................................................................................................................3
1.2 Background of the research...................................................................................................5
1.3 Background of the organization.............................................................................................5
1.4 Rationale of the study............................................................................................................6
1.5 Significance of study.............................................................................................................6
1.6 Research Aims.......................................................................................................................7
1.7 Research Objectives...............................................................................................................7
1.8 Research Question.................................................................................................................7
1.9 Structure of the study.............................................................................................................7
CHAPTER 2 LITERATURE REVIEW..........................................................................................9
2.1 Introduction............................................................................................................................9
2.2 Comparative advertising........................................................................................................9
2.3 Determinants of profitability in an organisation..................................................................11
2.4 Link between comparative advertising and profitability.....................................................11
2.5 Advantages of Comparative Advertising.............................................................................12
2.6 Challenges and Barriers associated to Comparative Advertising........................................15
2.7 Contrasting Comparing advertising with Non Comparative...............................................17
2.8 Application to Apple and Samsung.....................................................................................18
CHAPTER 3 RESEARCH METHODOLOGY............................................................................20
3.1 Introduction..........................................................................................................................20
3.2 Research tools and techniques.............................................................................................20
CHAPTER 4 DATA ANALYSIS.................................................................................................30
4.1 Introduction..........................................................................................................................30

Findings.....................................................................................................................................30
Interpretation..............................................................................................................................40
Chapter 5 Conclusion....................................................................................................................57
Conclusion.................................................................................................................................57
Recommendation.......................................................................................................................60
REFERENCES..............................................................................................................................63

CHAPTER 1: INTRODUCTION
1.1 Introduction
Advertising is becoming the most important part of any organisation as it helps them in
gaining customer loyalty. It is one of the best technique by which companies can motivate more
number of customers to purchase their products (Batra, 2009). In order to sponsor their services
as well as products organisations need to adopt several tactics. In the present study the main
research issue is an increasing demand of customers in today’s highly competitive environment.
Due to the various regulatory bodies it is not allowed to companies to go through the
comparative advertising as it might give negative feedback for other company’s products (Belch,
2003). However, it should be noted that comparative ads tend to contain more information than
no comparative ads. Advertising is becoming one of the most important issues nowadays as most
of the companies are try to adopting some of the best promotional and advertising techniques
(Faber, 2005).
It is creating huge competition. Further, the research compares the usefulness of virtual
and non-comparative advertising. According to Marder, (2004) comparative advertising is used
by most of the companies in order to compare their services and products with their competitors.
It is the best effective way under which advertisers promote their goods or services by comparing
them with the services of another party. It helps them in gaining higher competitive advantage
and in enhancing their market share as well (Hill, 2006). In order to go through better
advertising, companies are adopting various promotional techniques such as television,
newspapers, social media etc. These are some of the best techniques through which firms can
promote their products. Under this, organisations can identify the overall marketplace such as
worth, price, choice of customers, trade as well as various other services (Love, 2011).
The present study contrasts the efficiency of comparative advertising non-comparative
advertising. It has been founded from past several studies that comparison ads, however were
found to be more effective in case of shopping goods. Under this, a case study of Samsung and
Apple has been taken into consideration (Faber, 2005). Both the companies are promoting their
services with the help of developing various mobile advertisements. It is being identified from
the several past studies that companies do not harm each other’s brand image in any way.
Comparison ads however were found to be more effective in case of shopping goods (Marder,
2004). With the help of this study, effectiveness of various campaigns that have taken place by
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Samsung and Apple will be identified. Apart from this, different between comparative and non-
comparative advertising will also be defined in an effectual manner (Batra, 2009). Further, the
present study somehow helps in enhancing the knowledge from various past studies about the
given subject matter.
Non Comparative Advertising
 Definition: In this subdivision of advertising, each firm may inform customers about its
own prime factor but not that of the competitor. It advertises its own quality of the
product in the market by sending a message in a form of a commercial over TV, internet,
newspaper, etc. The difference in levels of quality of the products is known by the
company and not by the customers. The quality levels define the company's share in the
market. As per non comparative advertisement, company focuses and describes only on
its product quality. It results in a two sender communication game with a continuum of
kinds of products where a kind is given by the actual quality. As per research conducted,
Non-comparative advertising depicts the communication made by the company to the
market in order to attract the customers, by the way of focusing over the qualities of its
product but not in the manner to show its product prior to the any competitor’s product.
 Approaches : non comparative advertisement has two kind of approaches which are
explained as:
◦ Traditional Approach: As per this approach, company has limited medium of
advertise its product in the market and has to attract the direct customers. Although
the focus of the company over signaling its quality remain the same. Advertisement
as per traditional approach remains up to Newspaper, TV commercials, radio, etc.
which attracts small area of market. It cost less to the company and the impact of the
advertisement is also for short duration. Though, it is traditional way of
advertisement, but it is still preferred by the company in present time too.
◦ Modern Approach: According to this approach of advertisement, Company focuses
on appealing as the best in the quality of the product range available in the current
market. It contributes local as well as global market too, signalling towards its quality
as the best option addressable in the market. The medium of advertisement are of
wide range that includes with the commercials over TV, internet, hoardings, wall
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paintings, pop-ups, etc. This wide advertisement is Costly to the company but its
impact over the market is for long time period.
1.2 Background of the research
Comparative advertising is an advertising war under which a particular product or
service, particularly mention the name of a competitor brand. The name is mentioned in order to
express why the other product is inferior to the advertising product (McNeill, 2009). It is also
regarded as “knocking copy” and the advertised brand is explicitly compared with one or more
competing brand and the comparison is obvious to the people viewing it. It is to be noted that
this kind of advertising should not be confused with parody advertisements where a fictional
product is being promoted in order to poke fun at the other advertisements (Mohr, 2000). Neither
should it be confused with the use of a coined brand name where the product is compared
without actually naming the actual competitor. By adopting comparative advertising, companies
can adopt different ways to break into new markets. Further established or tired brand can
repositioned them and regain lost market share. Over one third of advertising is comparative in
nature while one quarter of advertising directly identifies or names the competitive brand
(O'Guinn, 2014).
This form of advertising has been increasingly implemented by the companies throughout
the years. Believability is a factor which contributes to the effectiveness of this approach. It
decides the extent up to which consumer can rely on the information provided in these
advertisements (Paswan, 2000). In other words, it checks their level of involvement and the
convenience in evaluation. It is been said that comparative advertising is generally attached with
negativity as evidenced by the early industry condemnation. Involving in such kind of activities
damages the goodwill and credibility of the company (Perks, 2010). Several studies have
indicated that negative information can be stored in more effective manner. On the opposite such
type of negativity creates an impact on consumer’s perception towards the brand. In the past
various studies have proven that comparative advertising has been responded in negative
manner.
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1.3 Background of the organisation
Apple Incorporation is an American multinational technology firm which is
headquartered in Cupertino, California. It designs, produces and sells products such as consumer
electronics, software along with some online services (Apple, 2015). The organisation enjoys a
high level of brand loyalty and recently it has regarded as the world’s most valuable brand with a
valuation of $118.9 billion according to Inter-brand Best Global Brands Report. The brand is
second largest in terms of revenue third largest in terms of mobile manufacturing. Apple has also
been a part of comparative advertising within its business strategies. For instance, the
organisation has effectively utilised its Mac Vs PC advertisements as a part of its marketing
approaches in order to increase the market share over the years (O'Guinn, 2014). Hence the study
will examine how this form of advertising has contributed its success or failure.
Another organisation selected is Samsung which is Apple’s biggest rival. Samsung is a
South Korean multinational conglomerate organisation headquartered in Seoul. Over almost
three decades, the brand has diversified into different business segments such as food processing,
textiles, insurance, securities, retail and electronics (Samsung, 2015). Company has globalised its
business extensively particularly in mobile phones and electronic products. For instance
Samsung has also shown its involvement in comparative advertising. Hence this research study
will make a healthy comparison between Apple and Samsung.
1.4 Rationale of the study
Previous research studies on this subject had reported mixed results. Most of them have
shown that comparative advertising has responded very negatively. The problem of the research
is that which type of ads is more effective, comparative or non-comparative. It will focus on the
positive and negative aspects of both the approaches. In order to show more practicality about
the approach, two companies have been chosen that are Apple and Samsung. Recently it has
been noticed that both the companies have charged accusations on each other with regard to
copyrights of the software and advertisements. Apple has also been a part of comparative
advertising within its business strategies while on the other side, Samsung has also shown its
involvement in comparative advertising. There is a need to find the answer, that which kind of
advertising is more beneficial for the business and how they are benefitting the above two big
brands. Further it will be interesting to examine this kind of controversial subject.
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1.5 Significance of study
The current research holds both practical and academic significance. It is quite essential
for researcher to carry out the study across companies to compare the effectiveness of
comparative as well as non-comparative advertising. Hence, researcher can gather most
appropriate and relevant information from the several past studies and as well as research work
done by the other authors. Mohr (2000) stated that comparative advertising is one of the most
common forms of marketing that involves comparison between brands and products. The present
study also holds possible significance for convenient purpose. Presently, organisations are highly
concern about their advertising and promotional techniques. Without proper information of
advertisements and promotional techniques organisations can’t develop and implement
appropriate techniques in the research study. Therefore, present study provides appropriate
information for effectiveness of comparative as well as non-comparative advertising.
1.6 Research Aims
The main aim of this study is to analyse the comparison between effectiveness of
comparative advertising and non-comparative advertising. The purpose of the researcher is to
find out which type of advertising among the above two, is beneficial. In that regard, Samsung
and Apple have been chosen. These two companies always had a tough rivalry between them and
had also adopted the two approaches. The research intends to cover which of the two advertising
approaches in more informative and what are the associated challenges with them.
1.7 Research Objectives
 To assess the different comparative and non-comparative advertising used by Samsung
and Apple
 To analyse the customer loyalty of Samsung and Apple
 To analyse the effectiveness of comparative and non-comparative advertising on
customer loyalty for both Samsung and Apple
 To provide recommendations to plan a more effectiveness advertising campaign to
increase customer loyalty
1.8 Research Question
What are the major challenges and barriers faced by companies at the time of
comparative advertising?
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1.9 Structure of the study
Every research carries a structure which includes the chapter which are to be framed for
the purpose of achieving the goals and objectives of the study. Following structure has been
developed for this research:
Chapter 1 – Introduction
This chapter sets a clear purpose and a rationale for the study. It identifies why the
research is important and how it will add value to different areas. The background will inform
the readers about the problem or the situation and the context in which the researcher is
interested. Rationale of the study will highlight the research issue. At last the aim and objectives
are to be developed.
Chapter 2 – Literature Review & Conceptual framework
This chapter performs review of the various literatures. It includes the past research
findings from the previous scholars. A link is to be established between the existing literature
and own research. Debates will be captured related to the subject and own inputs, views and
insights are to be analysed
Chapter 3 - Research Design and Methodology
It discusses the methods and techniques which are used in the data collection. This
chapter holds great significance because it evaluates the data which is collected for the purpose
of achieving the goals and objectives of the study.
Chapter 4 - Results, analysis and discussion
Under this chapter all the findings are analysed and interpreted. A suitable data analysis
technique is used to interpret the results in line with the research objectives. It will also be
backed up with own insights of the researcher.
Chapter 5 - Conclusion & Recommendation
This chapter is presented with clear justifications. It offers a summary of the findings of
the data analysis. It will reflect on the extent to which the objectives have been achieved. Further
valid recommendations will be made in the context of the subject and the entire research.
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CHAPTER 2 LITERATURE REVIEW
2.1 Introduction
Literature review can be regarded as the evaluation account of what has been published
on the subject of the research. The following study is about analysing the comparison between
effectiveness of comparative advertising and non-comparative advertising. It takes into
consideration the past findings and the previous studies which have been done on the topic
(Bruce and Martin, 2012). The researcher tries to establish a link between the own research and
existing literature. Efforts are made to identify the debates related to the issue. Apart from that
researcher will also insert his own inputs, views and insights.
This part of the research display the theoretical knowledge related with the literature. The
researcher tries to establish a critical association with the research question. The contributions
from previous researchers are critically reviewed in order to underpin the study (Dr. Lazar, Dr.
Feng and Dr. Hochheiser, 2010). Published academic journals and articles are used in order to
gain effective learning related to the topic. Comparisons will be made between the own and
previous contribution.
This chapter performs review of the various literatures. It includes the past research
findings from the previous scholars. A link is to be established between the existing literature
and own research (Fowler, 2009). Debates will be captured related to the subject and own inputs,
views and insights are to be analysed.
After that the gaps and loopholes between the literatures are discovered. Hence the
chapter holds a great importance from the theoretical point of view. It will develop conceptual
knowledge about the research subject and the researcher requires to put lot of concentration and
focus on this part (Kuada, 2012). This research topic of Comparative Advertising is very fresh
and has not gained so much attention from the researchers. It is expected that it will produce
some good amount of knowledge and concepts.
2.2 Comparative advertising
According to Soscia, Girolamo and Busacca, (2010), comparative advertising is a
marketing strategy under which an organisation reflects how its product or service is superior to
that of its competitors. The benefits and costs associated with the products are compared within
the advertisement itself. It is not only used in the marketing of the products or services. However
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critically it has been said by Merriam, (2009) that it is only popular with the companies who
release new products. It is because the focus of the advertisement is to reflect how the new
product is better than the products already within the market.
According to Manzur, Uribe and Farías, (2012), comparative advertising is regarded as
the advertising which makes a comparison between alternative brands on the basis of objectively
measurable attributes or price. Under this approach a direct or indirect comparison is made
between two similar categories of products. However according to Beard, (2010), it can also be
regarded as the knocking copy under which the advertised band is compared with one or more
competing brands in explicit manner. The comparison is obvious to the audience.
According to the United States, the Federal Trade Commission (FTC), comparative
advertising can be defined as the advertising which makes certain comparisons between the
products of two different companies operating within the same industry. The comparison is done
on the basis of certain factors such as price, characteristics, branding etc.
According to Love (2011) comparative advertisements play the most important role
nowadays due to which organisations can compare their products and services with their
competitors. With the help of this company can easily improve their customer base and may
generate larger revenues. Needs and demand of customers are changing rapidly which might
create several problems. According to O'Guinn (2014) in present scenario, there is growing trend
in TV advertising towards the comparison of one brand against their competitive brand.
Perks (2010) critically identified that listening to comparative advertising seems very
easy but in reality, it is one of the most difficult types of advertising that has to be done with
careful study and lots of precautions. There are different types of challenges and barriers which
are faced by the company in this type of advertising which can be started with the extensive
research.
Mohr (2000) analysed that before comparing a product of company with other firm’s
product in order to show the superiority, organisation has to do an extensive research about the
particular product. They need to compare their so all its strong and weak points can be identified
and those can be used in order to do the comparative marketing. It is true that if any of the fact or
figure while comparing the products is said to be wrong than the opposite company can file a big
case in the court and the main firm would have to pay heavy damages (Love, 2011).
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