Date of this Version
Quantitative Marketing and Economics
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.
This is a pre-publication version. The final publication is available at Springer via http://dx.doi.org/10.1007/s11129-009-9066-z
advertising, brand awareness, perceived quality, dynamic panel data methods
Clark, C. R., Doraszelski, U., & Draganska, M. (2009). The Effect of Advertising on Brand Awareness and Perceived Quality: An Empirical Investigation using Panel Data. Quantitative Marketing and Economics, 7 (2), 207-236. http://dx.doi.org/10.1007/s11129-009-9066-z
Date Posted: 15 June 2018
This document has been peer reviewed.