Online trading of stocks by individual investors required the E-Trade company to first capture the attention of individuals and then build sufficient confidence that the website could deliver a quality and useful service.


Discussion Questions:

  1. Watch the commercials. What stage of the hierarchy of effects model do they target?
  2. Explain how Means-Ends theory applies to the two commercials.
  3. For years, E-trade utilized images of babies speaking as adults to promote the brand. Explain how wear-out effects and decay effects may have influenced the company’s decision to change advertising approaches.
  4. How do the the comments made by Lea Stendahl, Chief Marketing Officer, and the content of the E-Trade website mesh with the two commercials?

About Dr. Donald Baack

Co-author of textbook.

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