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Toward a reconciliation of market power and information theories of advertising effects on price elasticity

Article Abstract:

Prior work on the economic effects of advertising has presented conflicting views. Some authors have suggesetd that advertising creates market power by artificially differentiating brands and thereby lowering price elasticity. Others have viewed advertising as an efficient source of information about the existence of substitutes, arguing that advertising increases price elasticity. The present research proposes a unifying theoretical model in which advertising affects price elesticity through its influence on two mediating constructs: the size of the consideration set and the relative strength of preference. Pretests 1 and 2 examine the effects of advertising on these two constructs. Results from the main experiment show that, in accordance with the theoretical framework, the same advertisements that increased price elasticity in some decision environments decreased it in others. (Reprinted by permission of the publisher)

Author: Mitra, Anusree, Lynch, John G.
Publisher: University of Chicago Press
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 1995
Economic aspects, Prices, Consumer preferences

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A longitudinal study of the use of the elderly in magazine advertising

Article Abstract:

Longitudinal analysis of magazine advertising campaigns indicates that portrayal of the elderly in advertisements is increasing. In most such portrayals, the elderly are represented as having prestigious employment positions, and older men are more often portrayed than are older women. The research used print ads appearing in U.S. magazines for the period from 1950 to 1980.

Author: Ursic, Anthony C., Ursic, Michael L., Ursic, Virginia L.
Publisher: University of Chicago Press
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 1986
Aged, Elderly, Usage, Advertising campaigns, Magazine advertising

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The moderating influence of advertising context on ad repetition effects: the role of amount and type of elaboration

Article Abstract:

The impact of advertisement repetition on product evaluation by consumers is analyzed.

Author: Malaviya, Prashant
Publisher: University of Chicago Press
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 2007
France, Management dynamics, Analysis, Management, Company business management, Advertising effectiveness, Motivation research (Marketing), Repetition (Rhetoric), Product evaluation, Top rating

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Subjects list: Research, Advertising
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