Advertising effects on awareness, consideration and brand choice using tracking data
Using weekly data on advertising expenditures in various media and response data on awareness, consideration and choice, we test the hierarchy of effects hypothesis. Our empirical results, based on a simultaneous equations model with pooled parameters across brands, suggest that we can reject this hypothesis convincingly. Next, we consider a vector error correction model, again with pooled parameters, to see if there are dynamic effects of advertising. For the category under scrutiny, we find that most advertising effects exist for awareness, although at the same time there are effects for choice. Newspaper advertising turns out to be most influential.
|Keywords||advertising, awareness, choice, consideration|
|JEL||Statistical Decision Theory; Operations Research (jel C44), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31), Advertising (jel M37)|
|Series||ERIM Report Series Research in Management|
Franses, Ph.H.B.F, & Vriens, M. (2004). Advertising effects on awareness, consideration and brand choice using tracking data (No. ERS-2004-028-MKT). ERIM Report Series Research in Management. Retrieved from http://hdl.handle.net/1765/1266