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.

Additional Metadata
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)
Persistent URL hdl.handle.net/1765/1266
Series ERIM Report Series Research in Management
Citation
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