Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing, market structure and increasing (or decreasing) dominance. In a simple model of persuasive advertising and pricing with differentiated goods, we analyze the interdependencies between ex-ante asymmetries in co...

We model the idea that when consumers search for products, they first visit the firms which advertise more, or the firms whose advertising is more salient. Equilibrium prices and advertising efforts are increasing in consumer search costs. By contrast, equilibrium profits are nonmonotonic in search costs so firms are not necessarily better off if search costs rise. In our model, firms are engag...

BACKGROUND Direct to consumer advertising is increasingly used by the pharmaceutical industry, but its benefits and harms have yet to be summarised in a comprehensive and rigorous manner. METHODS A systematic review was conducted of robust evaluations of the impact (positive and negative) of direct to consumer advertising. A broad range of databases and data sources (including Cinahl, Embase,...

Consumers’ negative perceptions toward mobile advertising have been a major impediment to its wider acceptance. This study examines the effects of perceived value of the mobile advertising and consumer privacy violation would have on consumers’ perceived mobile advertising intrusiveness, as well as the relationships of intrusiveness with perceived ad irritation and ad avoidance behavior. Result...

How does advertising influence consumer decisions and market outcomes? We utilize detailed data on consumer shopping behavior and choices over bank accounts to investigate the effects of advertising on the different stages of the shopping process: awareness, consideration, and choice. We formulate a structural model with costly search and endogenous consideration sets, and show that advertising...

The present paper examines the potential of a consumer behaviour approach as a means of using television advertising for health-promotion purposes. Research on the portrayal of health on television is reviewed and recent developments in employing regular television broadcasting for health education are discussed. Based on empirical findings, a consumer behaviour approach for health promotion is...

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Advances in data collection have made it increasingly easy to collect data on consumer-level purchases that are linked to those same customers’ advertising exposures. However, advances in advertising response modeling (i.e., marketing mix modeling) have lagged behind the availability of this granular data. Extending extant models to multi-channel consumer-level data, we develop a Bayesian Tobit...

Whenever a recession occurs, there is a heated dialog among marketing academics and practitioners about the appropriate levels of marketing spending. In this article, the authors investigate whether firms should spend more on research and development (R&D) and advertising in recessions. They propose that the effects of changes in firms’ R&D and advertising spending in recessions on profits and ...