Advertising, learning, and consumer choice in experience good markets: an empirical examination*
Year: 2003
Type: article
Study design: Observational Study
Abstract: This article empirically analyzes different effects of advertising in a nondurable, experience good market. A dynamic learning model of consumer behavior is presented in which I allow both “informative” effects of advertising and “prestige” or “image” effects of advertising. This learning model is estimated using consumer level panel data tracking grocery purchases and advertising exposures over time. Empirical results suggest that in this market, advertising's primary effect was that of informing consumers. The estimates are used to quantify the value of this information to consumers and evaluate the welfare implications of an alternative advertising regulatory regime.
Source: International Economic Review
Author: Daniel A. Ackerberg
Institution: University of California, Los Angeles
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2151084171