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CUSTOM MAGAZINES: WHERE DIGITAL PAGE-TURN EDITIONS FAIL*

                       Jos M.C. Schijns, Open University, Heerlen, the Netherlands
                   Edith G. Smit, University of Amsterdam, Amsterdam, the Netherlands

ABSTRACT

Threatened by the rise in paper, printing and postage costs, online custom magazines rejoice an
increased interest. They are seen as a more efficient, but equivalent alternative to offline custom
magazines. Most digital custom magazines, however, contain an electronic replica of the print version.
Our study explores the question of whether online page-turn custom magazines are an equivalent
alternative to offline custom magazines.
Based on our survey results we conclude that custom magazines have a bright future online. Replicas of
the print version, however, are not the future of the industry since the facsimile copy of the print edition in
a digital page-turn format does not stand up to print. Paper still ‘feels’ good and holds a much stronger
position, compared to online magazines, in terms of reach and average reading time. Another benefit of
offline custom magazines is that customers in general, and women in particular, prefer offline, since it
offers them something tangible and physical they can hold and engage with. In sum, there is still place for
print content in the digital age and before we move to jettison the magazine, let us fully understand what it
is we are possibly throwing away.

Keywords: Custom Magazine, Customer Loyalty, digital/online/virtual/electronic page-turn replica of the
print magazine

1. INTRODUCTION

Due to rising costs and shrinking marketing budgets, especially during an economic downturn, direct
marketers will continue shifting their budgets from traditional, offline media toward more efficient online
media. Custom magazines have not been isolated from this shift. As a result, online custom magazines
rejoice an increased interest. They are seen as a more efficient, but equivalent alternative to offline
custom magazines.
While the effectiveness of offline custom magazines has been empirically shown (e.g. APA, 2005; Mintel,
2006; Schijns, 2008; Sveriges Uppdragspublicister, 2009), the effectiveness of online custom magazines,
has hardly been supported empirically. In other words: although shifting marketing communication
budgets toward online communication, or even replacing offline custom magazines by a digital alternative,
is seen as more efficient, it certainly bares the risk that marketers reject the good with the bad.
In our research, we compare the performance of offline custom magazines and their online page-turn
replicas. There are several reasons for this focus. First, momentarily most of the online custom
magazines are nothing more than a non-interactive electronic replica of the print magazine. Second, the
few digital custom magazines that contain rich media mostly do not have a printed version, excluding a
comparison between the two. The third reason for this focus is a practical one. The database we used for
selecting respondents contained customers of companies, which sponsored a virtual page-turning format
next to a print edition. Companies sponsoring rich media custom magazines were not included in the
database. In the Netherlands, the country of focus in this study, only two companies were identified as
sponsoring rich media custom magazines, being: KLM (iFly) and Bol.com (Bomvol). Both issued a digital
custom magazine only. And, at the end of 2009, Bol.com ended its magazine Bomvol leaving iFly the only
real interactive custom magazine.
Central question we aim to answer is: “Are online page-turn custom magazines an equivalent alternative
to offline custom magazines?”




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2. LITERATURE REVIEW

2.1 Custom magazines described
Following Mintel (2006), we define custom magazines as “any regularly published title that is produced by
a publishing agency on behalf of a third party and that is offered to customers, employees or members.”
From this definition some characteristics of custom magazines can be distinguished. First, custom
magazines are financed by a specific organization, the sponsor. It is not the publishing agency bearing
the financial risks. Second, custom magazines are made for a specific group of stakeholders. Third,
custom magazines are published regularly.
Bronner (2004) and Smit (2007) mention two additional characteristics of custom magazines: custom
magazines contain both editorial and commercial content, and they have specific marketing or
communication goals, such as building stronger relationships between the sponsor and the stakeholder
group, promoting brand awareness, establishing a desired brand image or positioning, providing
information to their target market(s), and changing behavior.
In the USA custom media are also called: branded media, customer media, member media, content
marketing, and custom publishing. In the UK contract publishing and customer publishing also indicate
custom media. Retailing, automotive and financial services are the most popular sectors using custom
magazines. Other important sectors include: charities, leisure/sport, and utilities. In-flight magazines,
sponsored by airlines, were one of the first custom media and remain typical of the genre.

Custom magazines (in print) proofed to be effective in reaching their main marketing and communication
goals (APA, 2005; Mintel, 2006; Schijns, 2008; Sveriges Uppdragspublicister, 2009). They are, however,
rather costly to develop, print and distribute. Online editions offer a number of distinctive strengths.
Besides being more efficient, compared to print, they offer more options to interact with customers, they
can be more up-to-date and due to video and sound they are expected to generate more attention,
response and awareness. These strengths, however, are not always utilized since rich media are
required. In fact, most online magazines are just a digital page-turn version of the offline magazine.
However, being ineffective in using their potential does certainly not mean that such online magazines are
ineffective in reaching their marketing and communication goals. So, though more cost efficient, the
central issue here is whether online page-turn custom magazines are as effective as their offline
counterparts.

Based on the literature we identified five performance indicators to evaluate whether online custom
magazines are an equivalent alternative to offline custom magazines, namely: relationship commitment
(§2.2), brand image (§2.3), reach (§2.4), average reading time (§2.5), and magazine engagement (§2.6).

2.2 Customer relationship commitment
One of the most cited marketing and communication goals of custom magazines is building stronger
relationships with their stakeholder groups, inside and outside the company. Generally, online custom
magazines aim at the same objectives as offline magazines. It is therefore suggested that online custom
magazines too, aim at strengthening relationship commitment. Relationship commitment is viewed as a
general attitude of attachment (Beatty and Kahle, 1988), here between the sponsor of the magazine and
the customers. Offline custom magazines are found to be effective with respect to strengthening
commitment (APA, 2005; Kleijn, 2008; Schijns 2008). For that, we expect that readers of a custom
magazine feel more committed to the sponsor than non-readers (hypothesis 1a). In addition, we expect
that this is even more the case for offline readers than for online readers (hypothesis 1b).

So, our first hypothesis is as follows.

Hypothesis 1a: Customers reading a custom magazine are more committed to the sponsor than
customers not reading the magazine (readers > non-readers)

Hypothesis 1b: Customers reading an offline custom magazine are more committed to the sponsor than
customers reading the online edition (offline readers > online readers)




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2.3 Image
Besides strengthening commitment, establishing a desired brand image or positioning is a second, often
cited marketing and communication goal of custom magazines. Research has supported the
effectiveness of custom magazines in this regard. The Advantage Study, commissioned by the
Association of Publishing Agencies (APA) and Royal Mail, in cooperation with Millward Brown, for
example, summarizes that “Customer magazines contain independent editorial content which significantly
enhances the corporate brand image by on average 9%” (APA, 2005: 1). Also Kleijn (2008) suggests that
custom media contribute positively to the sponsor’s image, based on an extensive, two-stage quantitative
study. Schijns (2008: 75) concludes that “with respect to company image readers and non-readers differ
significantly. Readers of customer magazines have a more positive view of the company image than non-
readers.”

Therefore, we expect that:

Hypothesis 2a: Customers reading a custom magazine have a more positive view of the sponsor’s
image than customers not reading the magazine (readers > non-readers).

And, similar to hypothesis 1b, we expect that:

Hypothesis 2b: Customers reading an offline custom magazine have a more positive view of the
sponsor’s image than customers reading the online edition (offline > online).

2.4 Reach
Although online publications are available all over the world wide web (if not protected by a password or
membership), we are interested in the availability for the specific target group (‘selective reach’ instead of
potential ‘total reach’). Customers are mostly informed about a new online issue of the custom magazine
through an e-mail announcement containing a link inviting customers to visit the online magazine. In
general, sponsors have less e-mail addresses (if any) than postal addresses, resulting in less gross
reach. Also, generally, click-through rates are lower than postal openings, resulting in less net reach. In
addition, TargetCast tcm (2009) found that a majority of the respondents in their study preferred the
experience of reading a printed magazine over reading a magazine on the Internet and that only 15% of
respondents overall agree that they would rather read magazines online. That is to say that, with a printed
custom magazine, readers will be able to read and enjoy custom magazines in a relaxing manner on their
sofa (or the three B’s – Bathroom, Beach, Bus), resulting in less qualitative reach of online magazines. In
accordance with these differences in preferences we expect differences in reach.

Therefore we hypothesize that:

Hypothesis 3: The offline custom magazine will outperform the online audience in terms of quantitative
reach (number of readers) and qualitative reach (preferences).

2.5 Average reading time
Offline custom magazines are found to be effective with respect to engaging readers for an average of 25
minutes (APA, 2005), “which is significantly more than the eight seconds looking at a poster or 20-30
seconds listening to a radio ad. In essence it compares to fifty 30-second TV ads” (APA:
http://www.apa.co.uk/services/apa-insight). Kleijn (2008) also found support for the suggestion that a
custom magazine is a ‘twenty-minutes-medium’. The results of his study indicated that readers of printed
custom magazines in the Netherlands spent twenty minutes, on average.
Geske and Bellur (2008) did a study to see if reading differs between print materials and the same
information delivered via computer screen. They found that print established attention better than a
computer screen. It took more energy to process the same information reading from computer screen
than from print materials. For that, we expect consumers reading from print material will spend more time
reading the magazine than consumers reading from computer screen.




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Hypothesis 4: Readers of an offline custom magazine spend more time reading the magazine than
readers of the online version.

2.6 Engagement
Several studies showed that media can provide an effective context for advertising responsiveness when
consumers are highly engaged with a medium vehicle (e.g., DePelsmacker, Geuens, and Anckaert, 2002;
Moorman, Neijens, and Smit, 2002; Bronner and Neijens 2006). While the meaning of engagement is
intuitively clear, namely having a certain connection with a television program or a website, its
measurement is rather unclear (Calder et al., 2009). Calder et al. (2009) conceptualize engagement as a
collection of experiences with the medium and refer to Uses and Gratification studies (e.g., Ruggiero,
2000). In our study, we follow the line of Calder et al. (2009), but include consequences of engagement in
our items, such as ‘When I have received [name magazine], I always take the time reading it’ or ‘If I
wouldn’t receive [name magazine] anymore, I would miss it’. These additions are based on earlier
research on customer media commitment (Smit, 2007). Like relationship commitment, engagement is
viewed as a general attitude. However, where relationship commitment refers to the attachment between
the sponsor of the magazine and the readers, engagement refers to the experiences with the medium
itself (i.e., the custom magazine). As the medium itself differs in comparing an offline and online version of
a custom magazine, we expect that engagement with both versions will differ too, resulting in the
following hypothesis.

Hypothesis 5: Readers will be differently (more/less) engaged with the online version as compared to the
offline version

3. RESEARCH METHODOLOGY

3.1 Procedure and sample
In order to find out whether online custom magazines are an equivalent alternative to their offline
counterpart, we investigated customers of two retailers of luxurious body care products. These retailers
issued both an offline custom magazine and an online page-turn version. That is, the online and offline
editions of the magazine were identical with respect to content, structure, design and level of interaction.
There was no use of rich media, such as animations, interactive content, hyperlinks, embedded video and
audio, and movie clips.

A sample of 12,225 addresses was randomly drawn from a database, held by Cendris, containing data
from 1.8 million households in the Netherlands, which is 25% of all Dutch households. In the Netherlands,
Cendris is market leader in direct and interactive marketing. From the database it was known that the
selected addresses belong to customers of at least one of the two retailers under study, and that they had
left behind their e-mail address. These customers were surveyed online with respect to one of two
retailers and their readership of the custom magazine. The webbased survey application
(‘CendrisMonitor’) was reached by a link within an e-mail invitation.

We analyzed differences between the offline and online editions of both magazines in terms of five
performance indicators. For that, four subgroups were distinguished: readers of the offline edition, readers
of the online edition, readers of both the online and the offline edition, and non-readers.

3.2 Measures
Relationship Commitment (RC), as stated earlier, is viewed as a general attitude of attachment (e.g.
Beatty and Kahle, 1988). In this study, relationship commitment refers to the attitude of attachment
between the retailer (the sponsor of the magazine) and the retailer’s customers. Relationship commitment
was measured using three balanced seven-point Likert-type scales anchored ‘completely disagree’ (1)
and ‘completely agree’ (7): ‘I feel loyal to [name retailer]’, ‘The relationship I have with [name retailer] is
something I want to sustain’, ‘I feel involved with [name retailer] as a store for my purchases’.

For analytical reasons (e.g. confirmatory factor analysis, analysis of reliability and validity) we also
measure four other relational aspects: satisfaction, trust, willingness to continue the relationship and




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willingness to recommend the company. These aspects are considered to be related to, but different from
the core concept of relationship commitment.

Satisfaction is a customer’s overall or global judgment regarding the extent to which product or service
performance matches expectations (Anderson and Sullivan, 1993; Stank et al., 1999).

Trust refers to one party having confidence in an exchange partner’s reliability and integrity (Morgan and
Hunt, 1994). Trust is at stake when a party is willing to rely on an exchange partner in whom one has
confidence (Moorman et al., 1993).
Satisfaction and trust are seen as necessary conditions for customer relationship commitment (Schijns,
2002).

Willingness to continue the relationship is an indicator of anticipation of future interaction. Willingness to
continue the relationship is considered as an outcome of high levels of commitment to a relationship.

Willingness to recommend the company is considered also as an outcome of high levels of relationship
commitment and conceptualized as an indicator of anticipation of reference.

Each of the four additional relational constructs mentioned above, is measured using three balanced
seven-point Likert-type scales anchored ‘completely disagree’ (1) and ‘completely agree’ (7). The items
used are based on those used by Schijns (2008) in his research on the effectiveness of customer
magazines. For the specific items we refer to Table 1.

Image is measured using six items describing the sponsor of the customer magazine as being: an expert,
a reliable partner, an attractive supplier, a professional, incorruptible and a sympathetic organization.
These items are based on research by Poiesz (1989) and Smit, Van den Berge and Franzen (2003), and
measured on a 7-point Likert-type scale anchored ‘completely disagree’ (1) and ‘completely agree’ (7).

Engagement, the last multi-item construct we mention here, was based on Bronner and Neijens (2006),
Calder et al. (2009), and Smit (2007). The included items are: ‘I feel attached to [name of the magazine]’,
‘[name magazine] is a magazine I’m familiar with’, ‘When I have received [name magazine], I always take
the time reading it’, ‘I’m a loyal reader of [name magazine]’, ‘For [name magazine] I’m willing to pay a
small amount of money’ and ‘If I wouldn’t receive [name magazine] anymore, I would miss it’. These
items, too, are measured on a 7-point Likert-type scale anchored ‘completely disagree’ (1) and
‘completely agree’ (7).

4. RESULTS

4.1 Response rate
12,225 addresses were mailed to participate in the survey. 1,530 e-mail addresses appeared wrong or
non-existing (any more). So, a total number of 10,695 addresses received the invitation. 1,576 addresses
reacted to the invitation, resulting in a gross response rate of 14.7% (of the 10,695 addresses actually
reached). However, 33 respondents were not available at the time of the survey (‘out of office’-reply).
Four respondents indicated that they did not want to participate in the survey. So, the resulting net
response rate was 14.4 %. From the resulting 1,539 respondents 639 indicated that the investigated
retailers were their main supplier for body care products and were used in our analysis.

From these 639 respondents, 564 could be allocated to one of the following four groups: readers of the
offline edition (n = 254; 45%), readers of the online edition (n = 30; 5%), readers of both the online and
the offline edition (n = 106; 19%), and non-readers (n = 174; 31%).
No significant differences were found between these four groups with respect to age (F(3,554) = 1.317; p =
                        2
.268) or education ( (6) = 5.725; p = .455). There is, however, a significant difference with respect to
           2
gender ( (3) = 16.106; p = .001), suggesting that women are more likely to read the custom magazine
and that women are more likely than men to read the printed edition of the magazine. This aspect will be
explored in more detail in §4.3.3 (qualitative and quantitative reach).




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4.2 General analysis
Confirmatory Factor Analysis (CFA) was applied to the five relational factors: satisfaction, trust,
relationship commitment, willingness to recommend, and willingness to continue the relationship. The
calculations were performed using AMOS, version 16. Since our variables are not distributed joint
multivariate normal, our sample size (n = 564) is large (200-500 are required for simple models), and CFA
is a relatively simple model, we applied the Asymptotic Distribution Free (ADF) estimation procedure. All
loadings were significant and ranged from .64 to .90, well above Nunnally and Bernstein’s (1994)
suggested cutoff of .40.
                                  2
The model was significant ( (73) = 96.043; p = .037), which is not surprising given this test’s known
sensitivity to large sample sizes (Bollen, 1989). However, alternative fit indices suggest that the CFA-
model fits the data reasonably well: the GFI statistic is .928, the CFI statistic is .953 and RMSEA = .024
(Bagozzi and Yi, 1988).
Cronbach’s alpha values are well above Malhotra’s (1996, p. 305) minimum value of .60 for satisfactory
internal consistency reliability.

Table 1 summarizes the results of the CFA and Cronbach’s alpha tests.

 TABLE 1: RELIABILITY ESTIMATES AND FACTOR LOADINGS OF THE MEASUREMENT SCALES
   Variable                                              Item Factor loadings Cronbach’s
                                                                                 alpha
   Satisfaction                                                                   .86
   Generally, I’m satisfied with [name retailer]           1        .72
   Overall, [name retailer] is a good store                2        .65
   I think I made the right decision to buy my             3        .75
   products at [name retailer]
   Trust                                                                          .78
   When I have a problem, I’m confident that [name         1        .73
   retailer] does everything to help me solve the
   problem
   I trust [name retailer], their products and services    2        .74
   I have confidence in [name retailer] as a store for     3        .64
   my product needs
   Relationship Commitment                                                        .85
   I feel loyal to [name retailer]                         1        .76
   The relationship I have with [name retailer] is         2        .82
   something I want to sustain
   I feel involved with [name retailer] as a store for     3        .76
   my purchases
   Willingness to recommend                                                       .88
   I talk positively about [name retailer] with my         1        .74
   friends and family
   I recommend [name retailer] when I’m asked for          2        .90
   my opinion
   When a friend asks me for advice, it’s very likely      3        .79
   that I mention [name retailer]
   Willingness to continue relationship                                           .86
   In the future, I certainly keep buying at [name         1        .76
   retailer]
   It’s very likely that I stay with [name retailer] for   2        .78
   the next two years
   I give preference to [name retailer]                    3        .84

Additionally, using principal component analysis (PCA), each of the five constructs formed a reliable and
one dimensional scale.




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These results suggest satisfactory levels for internal consistency reliability and discriminant validity. So,
though related to relationship commitment, the variables satisfaction, trust, willingness to recommend the
company and willingness to continue the relationship are different from this core concept.

The results of the Cronbach’s alpha tests for magazine engagement are .89 and .86 for the print version
and the digital version respectively. For brand image the Cronbach’s alpha value is .93. Cronbach’s alpha
values are well above Malhotra’s (1996, p. 305) minimum value of .60 for satisfactory internal consistency
reliability.
Using principal component analysis (PCA), both magazine engagement and brand image formed reliable
and one dimensional scales.

4.3 Key findings

4.3.1 Relationship commitment
Exhibit 1 shows the results with respect to the five relational aspects, including the performance indicator
relationship commitment, for the four readership groups. Analysis of variance revealed significant
differences between the four groups for the core concept of relationship commitment (F(3,560) = 19.717; p =
.000) as well as for satisfaction (F(3,560) = 5.543; p = .001), trust (F(3,560) = 12.940; p = .000), willingness to
continue the relationship (F(3,560) = 27.049; p = .000) and willingness to recommend (F(3,560) = 18.560; p =
.000). Based on post-hoc analysis (Scheffe-tests), we found, however, no significant differences between
readers of the offline magazine and readers of the online magazine with respect to perceived relationship
commitment, satisfaction, trust, willingness to recommend and willingness to continue the relationship.
However, on average, both groups perceived a much stronger relationship than non-readers. In addition,
readers of both magazine formats felt significantly more committed than readers of either the offline or the
online edition, even though the online edition did not offer any additional content.

                                    EXHIBIT 1: RELATIONAL ASPECTS



                 6


               5,5


                 5


               4,5


                 4
                       Non-readers       Online readers      Offline readers      Offline and
                         (n=174)             (n=30)              (n=254)         online (n=106)
                          Commitment               Satisfaction              Trust
                          W. to continue           W. to recommend




Though satisfaction and trust are suggested to be necessary conditions to achieve relationship
commitment, the results also show that high levels of satisfaction and trust do not guarantee a high level




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of relationship commitment. As can be seen in Exhibit 1, despite relatively high levels of satisfaction and
trust relationship commitment is relatively low.

4.3.2 Image
Exhibit 2 shows the results of image perceptions by the four readership groups. Analysis of variance
revealed that the four groups differ significantly for each of the six aspects measured: expert (F(3,560) =
6.975; p = .000), reliable (F(3,560) = 12.770; p = .000), attractive (F(3,560) = 16.830; p = .000), professional
(F(3,560) = 5,800; p = .001), incorruptible (F(3,560) = 7.301; p = .000) and sympathetic (F(3,560) = 12.496; p =
.000). Post-hoc analysis shows that the small group of online readers does not differ from the other three
groups with respect to each of the image aspects, with the exception of attractiveness. In general, all
groups perceive their supplier positively, and readers of both the offline and online edition are the most
positive. Non-readers are the least positive about the sponsor’s image.

                                       EXHIBIT 2: SPONSOR’S IMAGE




              6,5

                6

              5,5

                5

              4,5

                4
                       Expert       Reliable   Attractive   Professional Incorruptible Sympathetic

                                Non-readers (n=174)            Offline readers (n=254)
                                Online readers (n=30)          Offline and Online (n=106)



4.3.3 Reach

4.3.3.1 Quantitative reach (number of readers)
As indicated before we distinguished four readership groups. That is, the 564 respondents contained 174
non-readers (31%), 30 readers of the online edition (5%), 254 readers of the offline edition (45%) and 106
readers of both the online and the offline edition (19%). Exhibit 3a summarizes these results and shows
the difference in audience reached directly by the offline (64%) and online (24%) edition of the custom
magazine.




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EXHIBIT 3A: MEDIUM’S AUDIENCE (DIRECT)


                                  100
                                   90
                                   80
                                   70              

                                                   
                                                       

                                                       




                                                          =64
                                   60
                                                                                               Pure
                             % 50
                                                          45                                   Both
                                   40
                                   30                                  

                                                                       
                                                                           

                                                                           




                                                                               =24
                                   20                                         5
                                                          19
                                   10                                         19
                                       0
                                                 Offline          Online

We also asked respondents to indicate if there are other members in their household (e.g. family
members) reading the magazine. We call this the spin-off to others, being the audience reached
indirectly. The results show that in case of an offline custom magazine other members of the household
read the magazine, relatively more than in case of an online edition of the custom magazine (See Exhibit
3b). So, there is some kind of a ‘double jeopardy’ effect here: the online edition of the magazine not only
is red by less customers (direct reach; Exhibit 3a), there is also less spin-off to other members of
customers’ households (indirect reach; Exhibit 3b), compared to the print edition.

                      EXHIBIT 3B: MEDIUM’S AUDIENCE (INDIRECT, SPIN-OFF)




              Spin-off digital?            20%                                 66%                        14%




               Spin-off print?                            47%                                 46%           7%




                                  0%             20%            40%                     60%         80%     100%

                                                                 Yes               No     ?




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4.3.3.2 Qualitative reach (preferences)
The majority of respondents (58%) prefers reading the offline edition (see Exhibit 4A). So, the printed
magazine reading experience is still preferred. There are no correlations between preferences and socio-
                                                                                  2
demographic characteristics like age (F(2,382) =.175; p = .840) and education ( (4) = 6.583; p = .160).
There is, however, a correlation with gender as already suggested in §4.1. That is, men are more likely
                                                                       2
than women to replace printed magazines with the digital alternative ( (2) = 10.077; p = .006). See exhibit
4B.
                               EXHIBIT 4A: READER’S PREFERENCES




                                     58                          14                  29




                0%             20%          40%              60%               80%             100%

                               Offline (n=222)   Online (n=53)        Both (n=110)



                 EXHIBIT 4B: READER’S PREFERENCES (MALE VERSUS FEMALE)




              Female (n=270)                     63                       11              26




                Male (n=115)                46                   20                  34




                               0%         20%          40%         60%            80%          100%

                                     Offline (n=222)    Online (n=53)          Both (n=110)




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4.3.4 Average reading time
The survey revealed a difference in average reading time. The offline edition took an average reading
time of 23 minutes. That is about double the average reading time for online magazines (12.5 minutes).

4.3.5 Reader-magazine engagement
The willingness to pay for online content is almost absent. There seems to be a mind set that online
content should be available ‘for free’. Online, ‘(for) free’ has become the norm.
However, for print magazines there is some willingness to pay for content.

People don’t find much time for browsing magazines online. However, they are willing to spend time with
a printed one.

                          EXHIBIT 5: READER-MAGAZINE ENGAGEMENT




                                             Attached to
                                                 7
                                                 6
                                                 5
                                Miss it          4               Familiar
                                                 3
                                                 2
                                                 1



                        Willing to pay                           Take time to read



                                                Loyal

                                Offline ed. (n=366)     Online ed. (n=135)




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5. CONCLUSIONS

Before drawing conclusions, we summarize the results using Table 2.

                                               TABLE 2: SUMMARY OF RESULTS
                                                             Focus of research


                   Performance Indicators              Offline Custom            Online Custom Magazine
                                                          Magazine
                                                           Print              ‘Page-turn’           ‘Rich Media’


                  1. Relational aspects            ++                     +(+)                  ++(+)
                  (e.g. commitment)

                  2. Image of the sponsor          +                      +                     +(+)

                  3. Average reading time          +++                    +                     ++

                  4. Medium’s audience:
                  • Quantitative:                  ++                     +                     ++
                        –Direct
                        –Indirect (spin-off)
                                                   ++                     0                     +
                  •Qualitative (preferences):      +++                    +                     ++
                  5. Reader-magazine               +                      +                     +
                  engagement


                     Note: Indications are                         Note: This column contains
                     Page 8
                            relative                                      assumptions




Our study explored the question of whether online page-turn custom magazines are an equivalent
alternative to offline custom magazines.

Our results suggest that digital page-turn custom magazines on screen are as effective as offline
magazines in building customer relationships. Offline custom magazines, however, still hold a much
stronger position, compared to online magazines, in terms of medium’s audience and average reading
time. Another benefit of offline publications is that customers in general, and women in particular, prefer
offline. Seemingly, it offers them something tangible and physical they can hold and engage with.

Based on our results demonstrated in §4 and summarized in Table 2 we conclude that the facsimile copy
of the print edition in a digital page-turn format does not stand up to print. Paper still ‘feels’ good and has
a huge amount of strength.

Presenting an existing paper custom magazine in a digital page-turn format on screen, is like thinking of
cars as horseless carriages. The screen is not a page and it’s not looked at in the same usability context
as a page. So, before we move to jettison the magazine, let’s understand what it is we’re throwing away.
Don’t reject the good with the bad.

6. DISCUSSION AND IMPLICATIONS

Custom magazines have a bright future online, but replicas of the print version distributed online are not
the future of the industry. It is to be seen as an intermediate technique. Marketers should guard against
investing huge amounts in this interim technology that soon will look out-dated. So, marketers thinking
about replacing their existing paper custom magazine for economical or environmental reasons, and
presenting it in exactly the same format on screen should reconsider their ambitions.




JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010                                         35
Also, they should be aware that the digital magazine is suggested to compliment, rather than substitute,
the print edition very well, since media channels learn to co-exist. Each medium is good for its own
reasons and might have a different audience. Like stairs didn’t disappear at the introduction of the
elevator and radio still exists after the introduction of television, there still is place for print content in the
digital age. Although many titles will go out of print, as a medium print magazines are just too tangible, too
accessible, and provide too great of an experience for demand to completely disappear.

Moreover, marketers that want to introduce a digital replica next to the print version of their custom
magazine might (better) transplant it into an eBook since the market penetration of e-Book readers and
tablets (like the iPad from Apple) increases rapidly. Besides, the same benefit print magazines have
(offline portability) is a benefit many will see in e-Magazines on e-Readers. With an e-Book or tablet as a
delivery device for content, readers will be able to read and enjoy custom magazines in a relaxing manner
on their sofa (or the three B’s – Bathroom, Beach, Bus), and have a “lean-backward experience” instead
of a “lean-forward experience”. In addition, in case of an e-Magazine marketers have more control over
the design. And, as a benefit, for e-Books there is a willingness to pay.

Otherwise, marketers should use Rich Media when going online with their custom magazine.

REFERENCES:

•   Anderson, E. and Sullivan, M., “The antecedents and consequences of customer satisfaction for
    firms”, Management Science, Vol. 12 (2), 1993, 125-143.
•   Association of Publishing Agencies (APA), APA Advantage Study: proving and benchmarking the
    effectiveness of customer magazines. Executive summary prepared on behalf of the APA by Millward
    Brown, March 2005, 12 pages, http://www.apa.co.uk/uploads/apa_documents/advantage_exsum-
    2.pdf.
•   Bagozzi, R.P. and Yi, Y., “On the evaluation of structural equation models”, Journal of the Academy
    of Marketing Science, Vol. 16 (Spring), 1988, 74-94.
•   Beatty, S.E. and Kahle, L. R., “Alternative hierarchies of the attitude – behaviour relationship: The
    impact of brand commitment and habit”, Journal of the Academy of Marketing Science, Vol. 16 (1),
    1988, 1–10.
•   Bollen, K., Structural equations with latent variables, John Wiley and Sons, New York, 1989.
•   Bronner, F., Customer magazines: a tool to create loyalty. In: P.C. Neijens, C. Hess, B. van den Putte
    and E.G. Smit, Content and Media Factors in Advertising, Het Spinhuis Publishers, Amsterdam,
    2004.
•   Bronner, F. and Neijens, P., “Audience experiences of media context and embedded advertising: A
    comparison of eight media”, International Journal of Market Research, Vol. 48(1), 2006, 81-91.
•   Calder, B.J., Malthouse, E.C. and Schaedel, U., “An experimental study of the relationship between
    online engagement and advertising effectiveness”, Journal of Interactive Marketing, Vol. 23 (4), 2009,
    321-331.
•   DePelsmacker, P., Geuens, M. and Anckaert, P., “Media context and advertising effectiveness: The
    role of context appreciation and context/ad similarity”, Journal of Advertising, 31(2), 2002, 49-59.
•   Geske, J. and Bellur, S., “Differences in brain information processing between print and computer
    screens”, International Journal of Advertising, Vol. 27 (3), 2008, 399-423.
•   Kleijn, B., Nederlanders over bedrijfsbladen, Logeion, The Hague, 2008.
                                                                         nd
•   Malhotra, N.K., Marketing Research: An Applied Orientation, 2 . Ed., Prentice Hall, New Jersey,
    1996.
•   Mintel, The customer publishing industry – 2005/2006, Executive summary prepared on behalf of the
    APA by Mintel Custom Solutions, August 11, 2006.
•   Moorman, C., Deshpande, R. and Zaltman, G., “Factors affecting trust in market research
    relationships”, Journal of Marketing, Vol. 57 (1), 1993, 81-101.
•   Moorman, M., Neijens, P.C. and Smit, E.G., “The Effects of Magazine-Induced Psychological
    Responses and Thematic Congruence on Memory and Attitude Toward the Ad in a Real-Life Setting”,
    Journal of Advertising, Vol. 31 (4), 2002, 27-40.




JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010                                       36
•   Morgan, R.M. and Hunt, S.D., “The commitment-trust theory of relationship marketing”, Journal of
    Marketing, Vol. 58 (3), 20-38.
•   Nunnally, J.C. and Bernstein, I.H., Psychometric theory, McGraw-Hill, New York, 1994.
•   Poiesz, T.B.C., “The image concept: its place in consumer psychology”, Journal of Economic
    Psychology, Vol. 10 (4), 1989, 457 – 472.
                                                           st
•   Ruggiero, T., “Uses and Gratification Theory in the 21 Century”, Mass Communication and Society,
    Vol. 3 (1), 2000, 3-37.
•   Schijns, J.M.C., “Loyaliteit en klanttevredenheid, een twee-eenheid?”, Bedrijfskunde, tijdschrift voor
    modern management, Vol. 74 (1), 2002, 57-65.
•   Schijns, J.M.C., “Customer Magazines: an effective weapon in the direct marketing armory”, Journal
    of International Business and Economics, Vol. 8 (3), 2008, 70-78.
•   Smit, E., Ver-BINDING: interne en externe relatiemedia als verbinding tussen mensen en
    organisaties, inaugural, Vossiuspers, University of Amsterdam, Amsterdam, 2007.
•   Smit, E.G., Berge, E. van den, and Franzen, G., “Brands are just like real people!” In: F. Hansen and
    L. Bech Christensen, Branding and Advertising, CBS Press, Copenhagen, 2003, 22-43.
•   Stank, T.P., Goldsby, T.J. and Vickery, S.K., “Effect of service supplier performance on satisfaction
    and loyalty of store managers in the fast food industry”, Journal of Operations Management, Vol. 17
    (2), 1999, 429-447.
•   Sveriges Uppdragspublicister, EFFU, en undersökning om kundtidningars effectivitet, 2009.
•   TargetCast tcm, Consumer Trend Report: Consumer Perspectives on How Media Usage Patterns are
    Evolving in the Digital Era, October, 2009.

AUTHOR PROFILES:

Dr. Jos M.C. Schijns earned his Ph.D. at the Maastricht University, the Netherlands in 1999. He earned
his MBA at Webster University (“Academic Honors”). Currently he is an assistant professor at the Open
University of the Netherlands, School of Management, and program manager at the Cendris Research
Center.

Prof. Dr. Edith G. Smit (Ph.D 1999, University of Amsterdam) is a professor of Media and Advertising at
the University of Amsterdam, department of Communication Science.
____________________________________
* The empirical part for this article was made possible through the generous support of the Cendris
Research Center (CRC). Cendris is part of TNT Post, the Dutch national postal services.




JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010                              37

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CUSTOM MAGAZINES: WHERE DIGITAL PAGE-TURN EDITIONS FAIL

  • 1. CUSTOM MAGAZINES: WHERE DIGITAL PAGE-TURN EDITIONS FAIL* Jos M.C. Schijns, Open University, Heerlen, the Netherlands Edith G. Smit, University of Amsterdam, Amsterdam, the Netherlands ABSTRACT Threatened by the rise in paper, printing and postage costs, online custom magazines rejoice an increased interest. They are seen as a more efficient, but equivalent alternative to offline custom magazines. Most digital custom magazines, however, contain an electronic replica of the print version. Our study explores the question of whether online page-turn custom magazines are an equivalent alternative to offline custom magazines. Based on our survey results we conclude that custom magazines have a bright future online. Replicas of the print version, however, are not the future of the industry since the facsimile copy of the print edition in a digital page-turn format does not stand up to print. Paper still ‘feels’ good and holds a much stronger position, compared to online magazines, in terms of reach and average reading time. Another benefit of offline custom magazines is that customers in general, and women in particular, prefer offline, since it offers them something tangible and physical they can hold and engage with. In sum, there is still place for print content in the digital age and before we move to jettison the magazine, let us fully understand what it is we are possibly throwing away. Keywords: Custom Magazine, Customer Loyalty, digital/online/virtual/electronic page-turn replica of the print magazine 1. INTRODUCTION Due to rising costs and shrinking marketing budgets, especially during an economic downturn, direct marketers will continue shifting their budgets from traditional, offline media toward more efficient online media. Custom magazines have not been isolated from this shift. As a result, online custom magazines rejoice an increased interest. They are seen as a more efficient, but equivalent alternative to offline custom magazines. While the effectiveness of offline custom magazines has been empirically shown (e.g. APA, 2005; Mintel, 2006; Schijns, 2008; Sveriges Uppdragspublicister, 2009), the effectiveness of online custom magazines, has hardly been supported empirically. In other words: although shifting marketing communication budgets toward online communication, or even replacing offline custom magazines by a digital alternative, is seen as more efficient, it certainly bares the risk that marketers reject the good with the bad. In our research, we compare the performance of offline custom magazines and their online page-turn replicas. There are several reasons for this focus. First, momentarily most of the online custom magazines are nothing more than a non-interactive electronic replica of the print magazine. Second, the few digital custom magazines that contain rich media mostly do not have a printed version, excluding a comparison between the two. The third reason for this focus is a practical one. The database we used for selecting respondents contained customers of companies, which sponsored a virtual page-turning format next to a print edition. Companies sponsoring rich media custom magazines were not included in the database. In the Netherlands, the country of focus in this study, only two companies were identified as sponsoring rich media custom magazines, being: KLM (iFly) and Bol.com (Bomvol). Both issued a digital custom magazine only. And, at the end of 2009, Bol.com ended its magazine Bomvol leaving iFly the only real interactive custom magazine. Central question we aim to answer is: “Are online page-turn custom magazines an equivalent alternative to offline custom magazines?” JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 24
  • 2. 2. LITERATURE REVIEW 2.1 Custom magazines described Following Mintel (2006), we define custom magazines as “any regularly published title that is produced by a publishing agency on behalf of a third party and that is offered to customers, employees or members.” From this definition some characteristics of custom magazines can be distinguished. First, custom magazines are financed by a specific organization, the sponsor. It is not the publishing agency bearing the financial risks. Second, custom magazines are made for a specific group of stakeholders. Third, custom magazines are published regularly. Bronner (2004) and Smit (2007) mention two additional characteristics of custom magazines: custom magazines contain both editorial and commercial content, and they have specific marketing or communication goals, such as building stronger relationships between the sponsor and the stakeholder group, promoting brand awareness, establishing a desired brand image or positioning, providing information to their target market(s), and changing behavior. In the USA custom media are also called: branded media, customer media, member media, content marketing, and custom publishing. In the UK contract publishing and customer publishing also indicate custom media. Retailing, automotive and financial services are the most popular sectors using custom magazines. Other important sectors include: charities, leisure/sport, and utilities. In-flight magazines, sponsored by airlines, were one of the first custom media and remain typical of the genre. Custom magazines (in print) proofed to be effective in reaching their main marketing and communication goals (APA, 2005; Mintel, 2006; Schijns, 2008; Sveriges Uppdragspublicister, 2009). They are, however, rather costly to develop, print and distribute. Online editions offer a number of distinctive strengths. Besides being more efficient, compared to print, they offer more options to interact with customers, they can be more up-to-date and due to video and sound they are expected to generate more attention, response and awareness. These strengths, however, are not always utilized since rich media are required. In fact, most online magazines are just a digital page-turn version of the offline magazine. However, being ineffective in using their potential does certainly not mean that such online magazines are ineffective in reaching their marketing and communication goals. So, though more cost efficient, the central issue here is whether online page-turn custom magazines are as effective as their offline counterparts. Based on the literature we identified five performance indicators to evaluate whether online custom magazines are an equivalent alternative to offline custom magazines, namely: relationship commitment (§2.2), brand image (§2.3), reach (§2.4), average reading time (§2.5), and magazine engagement (§2.6). 2.2 Customer relationship commitment One of the most cited marketing and communication goals of custom magazines is building stronger relationships with their stakeholder groups, inside and outside the company. Generally, online custom magazines aim at the same objectives as offline magazines. It is therefore suggested that online custom magazines too, aim at strengthening relationship commitment. Relationship commitment is viewed as a general attitude of attachment (Beatty and Kahle, 1988), here between the sponsor of the magazine and the customers. Offline custom magazines are found to be effective with respect to strengthening commitment (APA, 2005; Kleijn, 2008; Schijns 2008). For that, we expect that readers of a custom magazine feel more committed to the sponsor than non-readers (hypothesis 1a). In addition, we expect that this is even more the case for offline readers than for online readers (hypothesis 1b). So, our first hypothesis is as follows. Hypothesis 1a: Customers reading a custom magazine are more committed to the sponsor than customers not reading the magazine (readers > non-readers) Hypothesis 1b: Customers reading an offline custom magazine are more committed to the sponsor than customers reading the online edition (offline readers > online readers) JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 25
  • 3. 2.3 Image Besides strengthening commitment, establishing a desired brand image or positioning is a second, often cited marketing and communication goal of custom magazines. Research has supported the effectiveness of custom magazines in this regard. The Advantage Study, commissioned by the Association of Publishing Agencies (APA) and Royal Mail, in cooperation with Millward Brown, for example, summarizes that “Customer magazines contain independent editorial content which significantly enhances the corporate brand image by on average 9%” (APA, 2005: 1). Also Kleijn (2008) suggests that custom media contribute positively to the sponsor’s image, based on an extensive, two-stage quantitative study. Schijns (2008: 75) concludes that “with respect to company image readers and non-readers differ significantly. Readers of customer magazines have a more positive view of the company image than non- readers.” Therefore, we expect that: Hypothesis 2a: Customers reading a custom magazine have a more positive view of the sponsor’s image than customers not reading the magazine (readers > non-readers). And, similar to hypothesis 1b, we expect that: Hypothesis 2b: Customers reading an offline custom magazine have a more positive view of the sponsor’s image than customers reading the online edition (offline > online). 2.4 Reach Although online publications are available all over the world wide web (if not protected by a password or membership), we are interested in the availability for the specific target group (‘selective reach’ instead of potential ‘total reach’). Customers are mostly informed about a new online issue of the custom magazine through an e-mail announcement containing a link inviting customers to visit the online magazine. In general, sponsors have less e-mail addresses (if any) than postal addresses, resulting in less gross reach. Also, generally, click-through rates are lower than postal openings, resulting in less net reach. In addition, TargetCast tcm (2009) found that a majority of the respondents in their study preferred the experience of reading a printed magazine over reading a magazine on the Internet and that only 15% of respondents overall agree that they would rather read magazines online. That is to say that, with a printed custom magazine, readers will be able to read and enjoy custom magazines in a relaxing manner on their sofa (or the three B’s – Bathroom, Beach, Bus), resulting in less qualitative reach of online magazines. In accordance with these differences in preferences we expect differences in reach. Therefore we hypothesize that: Hypothesis 3: The offline custom magazine will outperform the online audience in terms of quantitative reach (number of readers) and qualitative reach (preferences). 2.5 Average reading time Offline custom magazines are found to be effective with respect to engaging readers for an average of 25 minutes (APA, 2005), “which is significantly more than the eight seconds looking at a poster or 20-30 seconds listening to a radio ad. In essence it compares to fifty 30-second TV ads” (APA: http://www.apa.co.uk/services/apa-insight). Kleijn (2008) also found support for the suggestion that a custom magazine is a ‘twenty-minutes-medium’. The results of his study indicated that readers of printed custom magazines in the Netherlands spent twenty minutes, on average. Geske and Bellur (2008) did a study to see if reading differs between print materials and the same information delivered via computer screen. They found that print established attention better than a computer screen. It took more energy to process the same information reading from computer screen than from print materials. For that, we expect consumers reading from print material will spend more time reading the magazine than consumers reading from computer screen. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 26
  • 4. Hypothesis 4: Readers of an offline custom magazine spend more time reading the magazine than readers of the online version. 2.6 Engagement Several studies showed that media can provide an effective context for advertising responsiveness when consumers are highly engaged with a medium vehicle (e.g., DePelsmacker, Geuens, and Anckaert, 2002; Moorman, Neijens, and Smit, 2002; Bronner and Neijens 2006). While the meaning of engagement is intuitively clear, namely having a certain connection with a television program or a website, its measurement is rather unclear (Calder et al., 2009). Calder et al. (2009) conceptualize engagement as a collection of experiences with the medium and refer to Uses and Gratification studies (e.g., Ruggiero, 2000). In our study, we follow the line of Calder et al. (2009), but include consequences of engagement in our items, such as ‘When I have received [name magazine], I always take the time reading it’ or ‘If I wouldn’t receive [name magazine] anymore, I would miss it’. These additions are based on earlier research on customer media commitment (Smit, 2007). Like relationship commitment, engagement is viewed as a general attitude. However, where relationship commitment refers to the attachment between the sponsor of the magazine and the readers, engagement refers to the experiences with the medium itself (i.e., the custom magazine). As the medium itself differs in comparing an offline and online version of a custom magazine, we expect that engagement with both versions will differ too, resulting in the following hypothesis. Hypothesis 5: Readers will be differently (more/less) engaged with the online version as compared to the offline version 3. RESEARCH METHODOLOGY 3.1 Procedure and sample In order to find out whether online custom magazines are an equivalent alternative to their offline counterpart, we investigated customers of two retailers of luxurious body care products. These retailers issued both an offline custom magazine and an online page-turn version. That is, the online and offline editions of the magazine were identical with respect to content, structure, design and level of interaction. There was no use of rich media, such as animations, interactive content, hyperlinks, embedded video and audio, and movie clips. A sample of 12,225 addresses was randomly drawn from a database, held by Cendris, containing data from 1.8 million households in the Netherlands, which is 25% of all Dutch households. In the Netherlands, Cendris is market leader in direct and interactive marketing. From the database it was known that the selected addresses belong to customers of at least one of the two retailers under study, and that they had left behind their e-mail address. These customers were surveyed online with respect to one of two retailers and their readership of the custom magazine. The webbased survey application (‘CendrisMonitor’) was reached by a link within an e-mail invitation. We analyzed differences between the offline and online editions of both magazines in terms of five performance indicators. For that, four subgroups were distinguished: readers of the offline edition, readers of the online edition, readers of both the online and the offline edition, and non-readers. 3.2 Measures Relationship Commitment (RC), as stated earlier, is viewed as a general attitude of attachment (e.g. Beatty and Kahle, 1988). In this study, relationship commitment refers to the attitude of attachment between the retailer (the sponsor of the magazine) and the retailer’s customers. Relationship commitment was measured using three balanced seven-point Likert-type scales anchored ‘completely disagree’ (1) and ‘completely agree’ (7): ‘I feel loyal to [name retailer]’, ‘The relationship I have with [name retailer] is something I want to sustain’, ‘I feel involved with [name retailer] as a store for my purchases’. For analytical reasons (e.g. confirmatory factor analysis, analysis of reliability and validity) we also measure four other relational aspects: satisfaction, trust, willingness to continue the relationship and JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 27
  • 5. willingness to recommend the company. These aspects are considered to be related to, but different from the core concept of relationship commitment. Satisfaction is a customer’s overall or global judgment regarding the extent to which product or service performance matches expectations (Anderson and Sullivan, 1993; Stank et al., 1999). Trust refers to one party having confidence in an exchange partner’s reliability and integrity (Morgan and Hunt, 1994). Trust is at stake when a party is willing to rely on an exchange partner in whom one has confidence (Moorman et al., 1993). Satisfaction and trust are seen as necessary conditions for customer relationship commitment (Schijns, 2002). Willingness to continue the relationship is an indicator of anticipation of future interaction. Willingness to continue the relationship is considered as an outcome of high levels of commitment to a relationship. Willingness to recommend the company is considered also as an outcome of high levels of relationship commitment and conceptualized as an indicator of anticipation of reference. Each of the four additional relational constructs mentioned above, is measured using three balanced seven-point Likert-type scales anchored ‘completely disagree’ (1) and ‘completely agree’ (7). The items used are based on those used by Schijns (2008) in his research on the effectiveness of customer magazines. For the specific items we refer to Table 1. Image is measured using six items describing the sponsor of the customer magazine as being: an expert, a reliable partner, an attractive supplier, a professional, incorruptible and a sympathetic organization. These items are based on research by Poiesz (1989) and Smit, Van den Berge and Franzen (2003), and measured on a 7-point Likert-type scale anchored ‘completely disagree’ (1) and ‘completely agree’ (7). Engagement, the last multi-item construct we mention here, was based on Bronner and Neijens (2006), Calder et al. (2009), and Smit (2007). The included items are: ‘I feel attached to [name of the magazine]’, ‘[name magazine] is a magazine I’m familiar with’, ‘When I have received [name magazine], I always take the time reading it’, ‘I’m a loyal reader of [name magazine]’, ‘For [name magazine] I’m willing to pay a small amount of money’ and ‘If I wouldn’t receive [name magazine] anymore, I would miss it’. These items, too, are measured on a 7-point Likert-type scale anchored ‘completely disagree’ (1) and ‘completely agree’ (7). 4. RESULTS 4.1 Response rate 12,225 addresses were mailed to participate in the survey. 1,530 e-mail addresses appeared wrong or non-existing (any more). So, a total number of 10,695 addresses received the invitation. 1,576 addresses reacted to the invitation, resulting in a gross response rate of 14.7% (of the 10,695 addresses actually reached). However, 33 respondents were not available at the time of the survey (‘out of office’-reply). Four respondents indicated that they did not want to participate in the survey. So, the resulting net response rate was 14.4 %. From the resulting 1,539 respondents 639 indicated that the investigated retailers were their main supplier for body care products and were used in our analysis. From these 639 respondents, 564 could be allocated to one of the following four groups: readers of the offline edition (n = 254; 45%), readers of the online edition (n = 30; 5%), readers of both the online and the offline edition (n = 106; 19%), and non-readers (n = 174; 31%). No significant differences were found between these four groups with respect to age (F(3,554) = 1.317; p = 2 .268) or education ( (6) = 5.725; p = .455). There is, however, a significant difference with respect to 2 gender ( (3) = 16.106; p = .001), suggesting that women are more likely to read the custom magazine and that women are more likely than men to read the printed edition of the magazine. This aspect will be explored in more detail in §4.3.3 (qualitative and quantitative reach). JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 28
  • 6. 4.2 General analysis Confirmatory Factor Analysis (CFA) was applied to the five relational factors: satisfaction, trust, relationship commitment, willingness to recommend, and willingness to continue the relationship. The calculations were performed using AMOS, version 16. Since our variables are not distributed joint multivariate normal, our sample size (n = 564) is large (200-500 are required for simple models), and CFA is a relatively simple model, we applied the Asymptotic Distribution Free (ADF) estimation procedure. All loadings were significant and ranged from .64 to .90, well above Nunnally and Bernstein’s (1994) suggested cutoff of .40. 2 The model was significant ( (73) = 96.043; p = .037), which is not surprising given this test’s known sensitivity to large sample sizes (Bollen, 1989). However, alternative fit indices suggest that the CFA- model fits the data reasonably well: the GFI statistic is .928, the CFI statistic is .953 and RMSEA = .024 (Bagozzi and Yi, 1988). Cronbach’s alpha values are well above Malhotra’s (1996, p. 305) minimum value of .60 for satisfactory internal consistency reliability. Table 1 summarizes the results of the CFA and Cronbach’s alpha tests. TABLE 1: RELIABILITY ESTIMATES AND FACTOR LOADINGS OF THE MEASUREMENT SCALES Variable Item Factor loadings Cronbach’s alpha Satisfaction .86 Generally, I’m satisfied with [name retailer] 1 .72 Overall, [name retailer] is a good store 2 .65 I think I made the right decision to buy my 3 .75 products at [name retailer] Trust .78 When I have a problem, I’m confident that [name 1 .73 retailer] does everything to help me solve the problem I trust [name retailer], their products and services 2 .74 I have confidence in [name retailer] as a store for 3 .64 my product needs Relationship Commitment .85 I feel loyal to [name retailer] 1 .76 The relationship I have with [name retailer] is 2 .82 something I want to sustain I feel involved with [name retailer] as a store for 3 .76 my purchases Willingness to recommend .88 I talk positively about [name retailer] with my 1 .74 friends and family I recommend [name retailer] when I’m asked for 2 .90 my opinion When a friend asks me for advice, it’s very likely 3 .79 that I mention [name retailer] Willingness to continue relationship .86 In the future, I certainly keep buying at [name 1 .76 retailer] It’s very likely that I stay with [name retailer] for 2 .78 the next two years I give preference to [name retailer] 3 .84 Additionally, using principal component analysis (PCA), each of the five constructs formed a reliable and one dimensional scale. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 29
  • 7. These results suggest satisfactory levels for internal consistency reliability and discriminant validity. So, though related to relationship commitment, the variables satisfaction, trust, willingness to recommend the company and willingness to continue the relationship are different from this core concept. The results of the Cronbach’s alpha tests for magazine engagement are .89 and .86 for the print version and the digital version respectively. For brand image the Cronbach’s alpha value is .93. Cronbach’s alpha values are well above Malhotra’s (1996, p. 305) minimum value of .60 for satisfactory internal consistency reliability. Using principal component analysis (PCA), both magazine engagement and brand image formed reliable and one dimensional scales. 4.3 Key findings 4.3.1 Relationship commitment Exhibit 1 shows the results with respect to the five relational aspects, including the performance indicator relationship commitment, for the four readership groups. Analysis of variance revealed significant differences between the four groups for the core concept of relationship commitment (F(3,560) = 19.717; p = .000) as well as for satisfaction (F(3,560) = 5.543; p = .001), trust (F(3,560) = 12.940; p = .000), willingness to continue the relationship (F(3,560) = 27.049; p = .000) and willingness to recommend (F(3,560) = 18.560; p = .000). Based on post-hoc analysis (Scheffe-tests), we found, however, no significant differences between readers of the offline magazine and readers of the online magazine with respect to perceived relationship commitment, satisfaction, trust, willingness to recommend and willingness to continue the relationship. However, on average, both groups perceived a much stronger relationship than non-readers. In addition, readers of both magazine formats felt significantly more committed than readers of either the offline or the online edition, even though the online edition did not offer any additional content. EXHIBIT 1: RELATIONAL ASPECTS 6 5,5 5 4,5 4 Non-readers Online readers Offline readers Offline and (n=174) (n=30) (n=254) online (n=106) Commitment Satisfaction Trust W. to continue W. to recommend Though satisfaction and trust are suggested to be necessary conditions to achieve relationship commitment, the results also show that high levels of satisfaction and trust do not guarantee a high level JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 30
  • 8. of relationship commitment. As can be seen in Exhibit 1, despite relatively high levels of satisfaction and trust relationship commitment is relatively low. 4.3.2 Image Exhibit 2 shows the results of image perceptions by the four readership groups. Analysis of variance revealed that the four groups differ significantly for each of the six aspects measured: expert (F(3,560) = 6.975; p = .000), reliable (F(3,560) = 12.770; p = .000), attractive (F(3,560) = 16.830; p = .000), professional (F(3,560) = 5,800; p = .001), incorruptible (F(3,560) = 7.301; p = .000) and sympathetic (F(3,560) = 12.496; p = .000). Post-hoc analysis shows that the small group of online readers does not differ from the other three groups with respect to each of the image aspects, with the exception of attractiveness. In general, all groups perceive their supplier positively, and readers of both the offline and online edition are the most positive. Non-readers are the least positive about the sponsor’s image. EXHIBIT 2: SPONSOR’S IMAGE 6,5 6 5,5 5 4,5 4 Expert Reliable Attractive Professional Incorruptible Sympathetic Non-readers (n=174) Offline readers (n=254) Online readers (n=30) Offline and Online (n=106) 4.3.3 Reach 4.3.3.1 Quantitative reach (number of readers) As indicated before we distinguished four readership groups. That is, the 564 respondents contained 174 non-readers (31%), 30 readers of the online edition (5%), 254 readers of the offline edition (45%) and 106 readers of both the online and the offline edition (19%). Exhibit 3a summarizes these results and shows the difference in audience reached directly by the offline (64%) and online (24%) edition of the custom magazine. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 31
  • 9. EXHIBIT 3A: MEDIUM’S AUDIENCE (DIRECT) 100 90 80 70         =64 60 Pure % 50 45 Both 40 30         =24 20 5 19 10 19 0 Offline Online We also asked respondents to indicate if there are other members in their household (e.g. family members) reading the magazine. We call this the spin-off to others, being the audience reached indirectly. The results show that in case of an offline custom magazine other members of the household read the magazine, relatively more than in case of an online edition of the custom magazine (See Exhibit 3b). So, there is some kind of a ‘double jeopardy’ effect here: the online edition of the magazine not only is red by less customers (direct reach; Exhibit 3a), there is also less spin-off to other members of customers’ households (indirect reach; Exhibit 3b), compared to the print edition. EXHIBIT 3B: MEDIUM’S AUDIENCE (INDIRECT, SPIN-OFF) Spin-off digital? 20% 66% 14% Spin-off print? 47% 46% 7% 0% 20% 40% 60% 80% 100% Yes No ? JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 32
  • 10. 4.3.3.2 Qualitative reach (preferences) The majority of respondents (58%) prefers reading the offline edition (see Exhibit 4A). So, the printed magazine reading experience is still preferred. There are no correlations between preferences and socio- 2 demographic characteristics like age (F(2,382) =.175; p = .840) and education ( (4) = 6.583; p = .160). There is, however, a correlation with gender as already suggested in §4.1. That is, men are more likely 2 than women to replace printed magazines with the digital alternative ( (2) = 10.077; p = .006). See exhibit 4B. EXHIBIT 4A: READER’S PREFERENCES 58 14 29 0% 20% 40% 60% 80% 100% Offline (n=222) Online (n=53) Both (n=110) EXHIBIT 4B: READER’S PREFERENCES (MALE VERSUS FEMALE) Female (n=270) 63 11 26 Male (n=115) 46 20 34 0% 20% 40% 60% 80% 100% Offline (n=222) Online (n=53) Both (n=110) JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 33
  • 11. 4.3.4 Average reading time The survey revealed a difference in average reading time. The offline edition took an average reading time of 23 minutes. That is about double the average reading time for online magazines (12.5 minutes). 4.3.5 Reader-magazine engagement The willingness to pay for online content is almost absent. There seems to be a mind set that online content should be available ‘for free’. Online, ‘(for) free’ has become the norm. However, for print magazines there is some willingness to pay for content. People don’t find much time for browsing magazines online. However, they are willing to spend time with a printed one. EXHIBIT 5: READER-MAGAZINE ENGAGEMENT Attached to 7 6 5 Miss it 4 Familiar 3 2 1 Willing to pay Take time to read Loyal Offline ed. (n=366) Online ed. (n=135) JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 34
  • 12. 5. CONCLUSIONS Before drawing conclusions, we summarize the results using Table 2. TABLE 2: SUMMARY OF RESULTS Focus of research Performance Indicators Offline Custom Online Custom Magazine Magazine Print ‘Page-turn’ ‘Rich Media’ 1. Relational aspects ++ +(+) ++(+) (e.g. commitment) 2. Image of the sponsor + + +(+) 3. Average reading time +++ + ++ 4. Medium’s audience: • Quantitative: ++ + ++ –Direct –Indirect (spin-off) ++ 0 + •Qualitative (preferences): +++ + ++ 5. Reader-magazine + + + engagement Note: Indications are Note: This column contains Page 8 relative assumptions Our study explored the question of whether online page-turn custom magazines are an equivalent alternative to offline custom magazines. Our results suggest that digital page-turn custom magazines on screen are as effective as offline magazines in building customer relationships. Offline custom magazines, however, still hold a much stronger position, compared to online magazines, in terms of medium’s audience and average reading time. Another benefit of offline publications is that customers in general, and women in particular, prefer offline. Seemingly, it offers them something tangible and physical they can hold and engage with. Based on our results demonstrated in §4 and summarized in Table 2 we conclude that the facsimile copy of the print edition in a digital page-turn format does not stand up to print. Paper still ‘feels’ good and has a huge amount of strength. Presenting an existing paper custom magazine in a digital page-turn format on screen, is like thinking of cars as horseless carriages. The screen is not a page and it’s not looked at in the same usability context as a page. So, before we move to jettison the magazine, let’s understand what it is we’re throwing away. Don’t reject the good with the bad. 6. DISCUSSION AND IMPLICATIONS Custom magazines have a bright future online, but replicas of the print version distributed online are not the future of the industry. It is to be seen as an intermediate technique. Marketers should guard against investing huge amounts in this interim technology that soon will look out-dated. So, marketers thinking about replacing their existing paper custom magazine for economical or environmental reasons, and presenting it in exactly the same format on screen should reconsider their ambitions. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 35
  • 13. Also, they should be aware that the digital magazine is suggested to compliment, rather than substitute, the print edition very well, since media channels learn to co-exist. Each medium is good for its own reasons and might have a different audience. Like stairs didn’t disappear at the introduction of the elevator and radio still exists after the introduction of television, there still is place for print content in the digital age. Although many titles will go out of print, as a medium print magazines are just too tangible, too accessible, and provide too great of an experience for demand to completely disappear. Moreover, marketers that want to introduce a digital replica next to the print version of their custom magazine might (better) transplant it into an eBook since the market penetration of e-Book readers and tablets (like the iPad from Apple) increases rapidly. Besides, the same benefit print magazines have (offline portability) is a benefit many will see in e-Magazines on e-Readers. With an e-Book or tablet as a delivery device for content, readers will be able to read and enjoy custom magazines in a relaxing manner on their sofa (or the three B’s – Bathroom, Beach, Bus), and have a “lean-backward experience” instead of a “lean-forward experience”. In addition, in case of an e-Magazine marketers have more control over the design. And, as a benefit, for e-Books there is a willingness to pay. Otherwise, marketers should use Rich Media when going online with their custom magazine. REFERENCES: • Anderson, E. and Sullivan, M., “The antecedents and consequences of customer satisfaction for firms”, Management Science, Vol. 12 (2), 1993, 125-143. • Association of Publishing Agencies (APA), APA Advantage Study: proving and benchmarking the effectiveness of customer magazines. Executive summary prepared on behalf of the APA by Millward Brown, March 2005, 12 pages, http://www.apa.co.uk/uploads/apa_documents/advantage_exsum- 2.pdf. • Bagozzi, R.P. and Yi, Y., “On the evaluation of structural equation models”, Journal of the Academy of Marketing Science, Vol. 16 (Spring), 1988, 74-94. • Beatty, S.E. and Kahle, L. R., “Alternative hierarchies of the attitude – behaviour relationship: The impact of brand commitment and habit”, Journal of the Academy of Marketing Science, Vol. 16 (1), 1988, 1–10. • Bollen, K., Structural equations with latent variables, John Wiley and Sons, New York, 1989. • Bronner, F., Customer magazines: a tool to create loyalty. In: P.C. Neijens, C. Hess, B. van den Putte and E.G. Smit, Content and Media Factors in Advertising, Het Spinhuis Publishers, Amsterdam, 2004. • Bronner, F. and Neijens, P., “Audience experiences of media context and embedded advertising: A comparison of eight media”, International Journal of Market Research, Vol. 48(1), 2006, 81-91. • Calder, B.J., Malthouse, E.C. and Schaedel, U., “An experimental study of the relationship between online engagement and advertising effectiveness”, Journal of Interactive Marketing, Vol. 23 (4), 2009, 321-331. • DePelsmacker, P., Geuens, M. and Anckaert, P., “Media context and advertising effectiveness: The role of context appreciation and context/ad similarity”, Journal of Advertising, 31(2), 2002, 49-59. • Geske, J. and Bellur, S., “Differences in brain information processing between print and computer screens”, International Journal of Advertising, Vol. 27 (3), 2008, 399-423. • Kleijn, B., Nederlanders over bedrijfsbladen, Logeion, The Hague, 2008. nd • Malhotra, N.K., Marketing Research: An Applied Orientation, 2 . Ed., Prentice Hall, New Jersey, 1996. • Mintel, The customer publishing industry – 2005/2006, Executive summary prepared on behalf of the APA by Mintel Custom Solutions, August 11, 2006. • Moorman, C., Deshpande, R. and Zaltman, G., “Factors affecting trust in market research relationships”, Journal of Marketing, Vol. 57 (1), 1993, 81-101. • Moorman, M., Neijens, P.C. and Smit, E.G., “The Effects of Magazine-Induced Psychological Responses and Thematic Congruence on Memory and Attitude Toward the Ad in a Real-Life Setting”, Journal of Advertising, Vol. 31 (4), 2002, 27-40. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 36
  • 14. Morgan, R.M. and Hunt, S.D., “The commitment-trust theory of relationship marketing”, Journal of Marketing, Vol. 58 (3), 20-38. • Nunnally, J.C. and Bernstein, I.H., Psychometric theory, McGraw-Hill, New York, 1994. • Poiesz, T.B.C., “The image concept: its place in consumer psychology”, Journal of Economic Psychology, Vol. 10 (4), 1989, 457 – 472. st • Ruggiero, T., “Uses and Gratification Theory in the 21 Century”, Mass Communication and Society, Vol. 3 (1), 2000, 3-37. • Schijns, J.M.C., “Loyaliteit en klanttevredenheid, een twee-eenheid?”, Bedrijfskunde, tijdschrift voor modern management, Vol. 74 (1), 2002, 57-65. • Schijns, J.M.C., “Customer Magazines: an effective weapon in the direct marketing armory”, Journal of International Business and Economics, Vol. 8 (3), 2008, 70-78. • Smit, E., Ver-BINDING: interne en externe relatiemedia als verbinding tussen mensen en organisaties, inaugural, Vossiuspers, University of Amsterdam, Amsterdam, 2007. • Smit, E.G., Berge, E. van den, and Franzen, G., “Brands are just like real people!” In: F. Hansen and L. Bech Christensen, Branding and Advertising, CBS Press, Copenhagen, 2003, 22-43. • Stank, T.P., Goldsby, T.J. and Vickery, S.K., “Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry”, Journal of Operations Management, Vol. 17 (2), 1999, 429-447. • Sveriges Uppdragspublicister, EFFU, en undersökning om kundtidningars effectivitet, 2009. • TargetCast tcm, Consumer Trend Report: Consumer Perspectives on How Media Usage Patterns are Evolving in the Digital Era, October, 2009. AUTHOR PROFILES: Dr. Jos M.C. Schijns earned his Ph.D. at the Maastricht University, the Netherlands in 1999. He earned his MBA at Webster University (“Academic Honors”). Currently he is an assistant professor at the Open University of the Netherlands, School of Management, and program manager at the Cendris Research Center. Prof. Dr. Edith G. Smit (Ph.D 1999, University of Amsterdam) is a professor of Media and Advertising at the University of Amsterdam, department of Communication Science. ____________________________________ * The empirical part for this article was made possible through the generous support of the Cendris Research Center (CRC). Cendris is part of TNT Post, the Dutch national postal services. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 10, Number 4, 2010 37