A 'Memory-Jamming' Theory of Advertising

60 Pages Posted: 22 May 2006

See all articles by Jesse M. Shapiro

Jesse M. Shapiro

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 19, 2006

Abstract

I present a model in which advertising changes consumers' recollections of their past experiences with a product. The model sheds light on several important features of advertising behavior: the relationship between advertising levels and consumer experience, the relationship between advertising and product quality, and the presence of increasing returns in the consumers' response to advertising. Importantly for empirical research on advertising, the model's comparative statics call into question the ability of standard empirical tests to distinguish informative from non-informative advertising.

Keywords: advertising, memory, persuasion, signal-jamming

JEL Classification: M37, L15

Suggested Citation

Shapiro, Jesse M., A 'Memory-Jamming' Theory of Advertising (May 19, 2006). Available at SSRN: https://ssrn.com/abstract=903474 or http://dx.doi.org/10.2139/ssrn.903474

Jesse M. Shapiro (Contact Author)

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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