ANTECEDENTS OF RISK-TAKING BEHAVIOR BY ADVERTISERS - EMPIRICAL-EVIDENCE AND MANAGEMENT IMPLICATIONS

In this article the authors examine the antecedents of risk-taking beh avior by advertisers and the circumstances that increase the propensit y to take risks. Drawing on Prospect theory and the wider literature o n risk in management decision making, a model of risk taking in advert ising is developed. Three specific antecedents are considered: company culture, company performance, and organizational processes. Employing a mail survey of senior marketing directors in the United States and Canada, data to test the model were gathered. Analysis indicates that company culture and performance have a significant impact on managers' risk-taking propensity. The findings are discussed in terms of their implications for advertising managers and their propensity to take adv ertising risks.