Understanding Advertiser´s Decision-Making when Choosing a Media Agency: A Case Study of Lithuanian Market

Daiva Schaefer

Student thesis: Master thesis

Abstract

For an agency knowing an advertiser’s motivational aspects for announcing media account review and the forces affecting decision-making criteria is essential. Appropriately addressed potential client’s declared and hidden decision attributes and their relative importance should allow media agencies to tailor more precisely pitching communication toward convincing an advertiser that the agency is the one that the advertiser wants and needs. Although there are various studies by academics on the topic of advertiser – agency relationship and some examining account acquisitions from a business-tobusiness perspective, the suitability of the prior studies’ findings presently should be questioned due to the change brought by the development of revolutionary technologies. Also, most of the research were regarded toward advertising agencies as full-service integrated enterprises. Moreover, the East- European countries concerning this topic are under-researched. Therefore, the objective of this thesis is to identify advertisers selection criteria specifically for media agencies by examining the media agency selection in Lithuania. Further, the study aims to provide a conceptual framework that would assist agencies in identifying advertisers’ hidden criteria and allow predicting the significance of certain criteria or criterion. For this purpose, the prior studies regarding advertiser – agency relationship and organizational decision-making behaviour were inspected. Following, a conceptual framework to analyse advertiser’s decision-making when selecting a media agency was proposed and applied to a case study of five case-companies for to test its veracity. The study findings provide valuable insight into advertisers’ expectations for media agencies in Lithuania as well as extend the knowledge of advertisers’ decision-making. The results of the research indicate the advertisers orientation for short-term results as advertisers’ expectations and objective focus on acquiring favourable media rates and the quality account people. Though, some situational factors account for more variation in risk affecting the advertisers’ connotation of criteria like creativity. In addition, the study identifies the size and the structure of the buying group in Lithuania. Researchers and practitioners can use the suggested conceptual framework for to analyse organizational decision-making when acquiring professional services. From an academic perspective, the thesis enhances the knowledge of the organizational buying behaviour. Nevertheless, the findings can serve only as the starting point as for to make generalizations complementary studies using quantitative approach are needed.

EducationsMSocSc in Service Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages118