Advertising Effects on Awareness, Consideration and Brand Choice Using Tracking Data
22 Pages Posted: 26 Aug 2006
Date Written: March 2004 4,
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: Suggested Citation