Marketing Papers

Document Type

Technical Report

Date of this Version

6-2009

Publication Source

Quantitative Marketing and Economics

Volume

7

Issue

2

Start Page

207

Last Page

236

DOI

10.1007/s11129-009-9066-z

Abstract

We use a panel data set that combines annual brand-level advertising expenditures for over three hundred brands with measures of brand awareness and perceived quality from a large-scale consumer survey to study the effect of advertising. Advertising is modeled as a dynamic investment in a brand’s stocks of awareness and perceived quality and we ask how such an investment changes brand awareness and quality perceptions. Our panel data allow us to control for unobserved heterogeneity across brands and to identify the effect of advertising from the time-series variation within brands. They also allow us to account for the endogeneity of advertising through recently developed dynamic panel data estimation techniques. We find that advertising has consistently a significant positive effect on brand awareness but no significant effect on perceived quality.

Copyright/Permission Statement

This is a pre-publication version. The final publication is available at Springer via http://dx.doi.org/10.1007/s11129-009-9066-z

Keywords

advertising, brand awareness, perceived quality, dynamic panel data methods

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Date Posted: 15 June 2018

This document has been peer reviewed.