Advertising Effects on Awareness, Consideration and Brand Choice Using Tracking Data

22 Pages Posted: 26 Aug 2006  

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Marco Vriens

Microsoft Corporation

Date Written: March 2004 4,

Abstract

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, consideration, choice

JEL Classification: M, M31, C44, M37

Suggested Citation

Franses, Philip Hans and Vriens, Marco, Advertising Effects on Awareness, Consideration and Brand Choice Using Tracking Data (March 2004 4,). ERIM Report Series Reference No. ERS-2004-028-MKT. Available at SSRN: https://ssrn.com/abstract=594965

Philip Hans Franses (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

Marco Vriens

Microsoft Corporation

One Microsoft Way
Redmond, WA 98052

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