THESIS UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE EFFECTIVENESS OF "TRUTH IN ADVERTISING" CAMPAIGN RELATIVE TO ETHICAL ADVERTISING ON TELEVISION A Thesis Submitted to the Faculty of the Graduate School of the University of Santo Tomas In Partial Fulfillment of the Requirements for the Degree of Master of Science in Advertising Ceres Catalina E. Guerrero 1999 UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL THESIS ABSTRACT TITLE: Effectiveness of "Truth in Advertising" Campaign Relative to Ethical Advertising on television RESEARCHER : Ceres Catalina E. Guerrero ADVISER : Professor Ernesto Apodaca SCHOOL : University of Santo Tomas YEAR COMPLETED : 1999 DEGREE : Master of Science in Advertising Statement of the Problem This study is an attempt to evaluate the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television. This was determined by means of a survey to find out the public perception on the effectiveness of the campaign. Specifically, this study aimed to answer the following problems: 1. What is the profile of the respondents' TV ad exposure in terms of the following: PAGE X UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE - how often the respondents watch television in a week? - what hours the respondents usually watch television? - do the respondents watch the ads shown on television? 2. Are the respondents aware of the existence of the "Truth in Advertising" campaign? 3. How do the respondents perceive the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television? 4. Is there a significant relationship in the perceptions of the respondents on the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television, when they are grouped according to their TV ad exposure? 5. How do the respondents perceive the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television? 6. Is there a significant relationship in the perceptions of the respondents on the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television, when they are grouped according to their TV ad exposure? Secondary to this , a content analysis of primetime ads on television was conducted in order to find out the most common provisions violated by advertisers based on the AdBoard's Code of Ethics. XI UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE Specifically, this study aimed to elicit answers to the following problems relative to the content analysis: 1. What are the most common provisions violated by advertisers based on the AdBoard's Code of Ethics? 2. What is the product category of these violating ads? 3. What is the profile of the erring advertiser in terms of the ff: - PANA membership -size of firm - nature of the company-advertiser's operations in the country Hypotheses 1. There is no significant relationship in the perceptions of the respondents on the effectiveness of the “Truth in Advertising” campaign in promoting ethical advertising on television, when they are grouped according to their TV ad exposure. 2. There is no significant relationship in the perceptions of the respondents on the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television, when they are grouped according to their TV ad exposure. xii UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE Scope and Limitation This study is focused on the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television. The effectiveness of the campaign was determined by means of a survey in order to find out the public perception whether the campaign is effective or not based on the ads shown on television. Respondents of this study are students of the University of Santo Tomas. Secondary to this, a content analysis of primetime ads on television was also conducted to find out the most common provisions violated by advertisers based on the AdBoard's Code of Ethics. The content analysis was confined to the following areas: only product ads were analyzed and only ten provisions from the AdBoard's Code of Ethics were used as criteria to analyze the ads since these were the only ones applicable. Research Method This study used the descriptive method of research in order to evaluate the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television as perceived by respondents who are highly and moderately exposed to TV ads. xiii UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE This method was also used to describe the most common provisions violated by advertisers based on the AdBoard's Code of Ethics which was carried-out by means of a content analysis of primetime ads on television. Research Instruments A questionnaire and a content analysis form were the main tools for data gathering. A questionnaire was designed based on the statement of the problem. It was divided into four parts which asked questions about the profile of the respondents' TV ad exposure, awareness on the existence of the "Truth in Advertising" campaign, perceptions on the effectiveness of the campaign and demographic characteristics of the respondents. Meanwhile, a content analysis form was used to record the provision violated by the ad, if any, the product category of the violating ad and the profile of the erring advertiser. Population and Sampling Technique Respondents of this study were students of the University of Santo Tomas who were identified by means of a two-step random sampling. xiv UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE Further, they must possess the following criteria which were deemed necessary in order to obtain reliable responses from the respondents: 1) they must be either highly or moderately exposed to TV ads; 2) they must be aware of the existence of the "Truth in Advertising" campaign and; 3) they must watch the ads shown on television. Statistical Treatment of Data The data gathered were subjected to statistical tests for their analysis and interpretation. The statistical tests used were as follows: 1) Frequency Distribution; 2) Percentage Distribution; 3) Weighted Mean; 4) Smallest Quotient System; 5) Pearson Correlation Coefficient in order to test the first hypothesis and; 6) Spearman Rank Correlation Coefficient in order to test the second hypothesis. Findings A. Perceptions on the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television. 1. What is the profile of the respondents' TV ad exposure? Most of the respondents (70.00%) are highly exposed to TV ads as manifested in their daily viewing of television. Only 23.00% of them are xv UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE moderately exposed. Meanwhile, it is during the primetime hours (7:00 to 10:00 in the evening) that most of the respondents (58.00%) watch television. Lastly, all of the respondents (100.00%) watched the ads shown on television. 2. Are the respondents aware of the existence of the "Truth in Advertising" campaign? Majority of the respondents or 71.00% are aware of the existence of the "Truth in Advertising" campaign. 3. How do the respondents perceive the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television? The highly exposed respondents perceived the "Truth in Advertising" campaign as EFFECTIVE in minimizing puffery or exaggerated words in TV ads, improving the roles portrayed by women in TV ads, encouraging the reflection of Filipino values, encouraging full disclosure of product information, promoting wholesome ads for children, minimizing false demonstrations/simulation in TV ads, ensuring that the exposure of bodily parts on TV are done in good taste and ensuring that all TV ads are not offensive of any person, race or religion. However, they xvi UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE perceived that the "Truth in Advertising" campaign is LEAST EFFECTIVE in minimizing the depiction of liquor and cigarette products as essential to social success. The moderately exposed respondents also perceived the campaign as LEAST EFFECTIVE in minimizing the depiction of liquor and cigarette products as essential to social success with the inclusion of not being able to ensure that exposure of bodily parts on television are done in good taste. The rest of the statements were rated as EFFECTIVE by the group. As a whole, both groups rated the "Truth in Advertising" campaign as EFFECTIVE in promoting ethical advertising on television. 4. Is there a significant relationship in the perceptions of the respondents on the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television, when they are grouped according to their TV ad exposure? There is a significant relationship in the perceptions of the highly exposed and moderately exposed respondents on the effectiveness of the "Truth in Advertising" campaign in promoting ethical advertising on television because upon computation of the Pearson Correlation Coefficient (rxy), the result was .97 indicating almost perfect correlation xvii UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE of perceptions of the two groups. 5. How do the respondents perceive the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television? The highly and moderately exposed respondents ranked the "Truth in Advertising" campaign as the first rank among ten other activities presented making it as the preferred means to promote ethical advertising on television. 6. Is there a significant relationship in the perceptions of the respondents on the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television, when they are grouped according to their TV ad exposure? There is a significant relationship in the perceptions of the highly exposed and moderately exposed respondents on the "Truth in Advertising" campaign as the preferred means to promote ethical advertising on television because, the Spearman Rank Correlation Coefficient's computed value of .96 is larger than the minimum significant value required which is .63 which indicates correlation of perceptions. xviii UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE B. Content Analysis of Primetime ads on Television 1. What are the most common provisions violated by advertisers from the AdBoard's Code of Ethics? Presentation is the most common provision violated by advertisers from the AdBoard's Code of Ethics (f=4) This was followed by the provision on Cigarette and Tobacco Products (f=3) and lastly, the provision on Scientific Claims(f=1). 2. What is the product category of these violating ads? Most violating ads belong to the Cigarette and Tobacco product category (f=3). Then, followed by non-prescription drugs, devices and treatment (f=2). Detergent, liquor and motor oil categories share one violating ad each. 3. What is the profile of the erring advertisers in terms of the following: 3.1 Is the erring advertiser a PANA member? Most of the erring advertisers or five (5) of them are PANA members namely Fortune Tobacco Corporation (with two erring ads), International Distiller's Phils. Inc., Petron Corporation and Unilever Phils., Inc. The remaining three advertisers are non-PANA members; namely' xix UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE DKT International Phils., Inc., Janssen Pharmaceutical and La Suerte Cigar and Cigarette Factory. 3.2 What is the size of firm of the erring advertiser? Most of the advertisers or four (4) of them are small-sized firms namely DKT International, Inc., Fortune Tobacco Corporation (with two erring ads) and Janssen Pharmaceutical. Meanwhile, three (3) erring advertisers belong to large-sized firms namely La Suerte Cigar and Cigarette factory, Petron Corporation and Unilever Phils., Inc. One (1) erring advertiser belong to a medium-sized firm which is International Distiller's Phils., Inc. 3.3 What is the nature of the company-advertiser's operations in the country? Most of the erring advertisers or five (5) of them are foreign-based companies namely DKT International Phils., Inc., International Distiller's Phils., Inc., Janssen Pharmaceutical, Petron Corporation and Unilever Phils., Inc. The remaining three advertisers are locally-based namely Fortune Tobacco Corporation (with two erring ads) and La Suerte Cigar and Cigarette Factory. xx UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE CONCLUSIONS: 1. The predominant profile of respondents' TV ad exposure is daily viewing of television, watching TV during primetime hour and watching the ads shown on television. 2. The academe is well-aware of the existence of the "Truth in Advertising" campaign. 3. The "Truth in Advertising" campaign is deemed EFFECTIVE in promoting ethical advertising on television. 4. The "Truth in Advertising" campaign is deemed as the most preferred means to promote ethical advertising on television. 5. Presentation is the most common provision violated by advertisers from the AdBoard's Code of Ethics. The ads in violation of this provision contain themes that have sexual undertones. 6. Cigarette and Tobacco is the product category most violating ads belong to. While other countries have banned cigarette ads, we seem to be very lenient in enforcing the necessary guidelines. 7. Most erring advertisers are PANA members. Therefore, PANA membership is not a guarantee of the non-violating status of the ads produced by its members. xxi UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE 8. Advertisers are capable of violating provisions in the AdBoard's Code of Ethics regardless of the size of their company and the nature of their company's operations in the country. RECOMMENDATIONS: 1. The "Truth in Advertising" campaign must be re-launched (coinciding with PANA's yearly anniversary) as a major project of PANA . PANA to intensify the campaign's information drive among advertisers. Further, PANA to encourage public participation in the incorporation of this campaign into law by adopting the provisions embodied in the AdBoard's Code of Ethics. In this way, the campaign would VERY EFFECTIVELY achieve its goals and objectives in increasing public confidence in advertising. 2. The AdBoard to be more strict in approving commercials with sexual undertones because such offend the contemporary standards of public decency and morals. The Robles Doctrine which contains specific guidelines in the screening of sexually suggestive ads, to be applied always by the AdBoard's screening committee. 3. Advertisers to avoid making ads with sexual undertones. Instead, it is encouraged that they be more creative in conveying their advertising xxii UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE messages. Advertisers to focus on product information and product benefits. In this way, they could contribute to the over-all objectives of the "Truth in Advertising" campaign and at the same time, help the public make an intelligent purchase decision. 4. PANA to strictly monitor its members by pre-screening their ads before the AdBoard does, closely coordinate with the AdBoard and be given police powers to legally sanction its members to ensure that they are models and forerunners of the "Truth in Advertising" campaign. 5. Cigarette and Tobacco product commercials to be banned during primetime unless they fully comply to the guidelines set in the AdBoard's Code of Ethics regarding the ethical advertising of this type of product. 6. For further study, the factors that are influential to an advertiser's decision in approving ethical advertisements to be explored. Specifically, the nature of these factors whether internal (i.e. values, beliefs) or external (i.e. money, policies) and the extent of influence these have on the individual. Particularly, to find out if the internal factors are more influential than the external factors to an advertising manager's decision in upholding ethical advertising to be studied. xxiii