The Hidden Cost of Warmth: Examining the Compensation Effect in a Cluttered Advertising Context

Abstract

This study investigates the negative consequences of warmth appeal in advertising, particularly in competitive cluttered contexts where consumers encounter multiple advertisements with varying warmth levels. Drawing upon the Stereotype Content Model (SCM), which suggests an inverse relationship between perceptions of warmth and competence, the study explores the "compensation effect", where increased perceptions of warmth lead to reduced perceptions of competence. Specifically, this study explores how advertisement exposure conditions (single advertisement vs. competitive clutter) with varying warmth levels affect consumer perceptions and purchase intention. The findings reveal that advertisements with high warmth appeal, when presented alongside advertisements with low warmth appeal, result in lower purchase intention owing to reduced perceptions of brand competence. Additionally, consumers’ self-monitoring was found to moderate these effects, with high self-monitoring exhibiting more pronounced negative reactions in a cluttered advertising context. These findings highlight the importance of strategically using warmth appeal, especially in competitive settings, and considering individual differences in consumer behavior, such as self-monitoring. This study offers valuable insights for advertisers and marketers to optimize warmth-based strategies in cluttered advertising environments.