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Vitamin panacea: Is advertising fueling demand for products with uncertain scientific benefit?

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  • Eisenberg, Matthew D.
  • Avery, Rosemary J.
  • Cantor, Jonathan H.

Abstract

This study examines the effect of advertising on demand for vitamins—products with spiraling sales despite little evidence of efficacy. We merge seven years (2003–2009) of advertising data from Kantar Media with the Simmons National Consumer Survey to estimate individual-level vitamin print and television ad exposure effects. Identification relies on exploiting exogenous variation in year-to-year advertising exposure by controlling for each individual’s unique media consumption. We find that increasing advertising exposure from zero to the mean number of ads increases the probability of consumption by 1.2 and 0.8% points (or 2 and 1.4%) in print and television respectively. Stratifications by the presence of health conditions suggests that in print demand is being driven by both healthy and sick individuals.

Suggested Citation

  • Eisenberg, Matthew D. & Avery, Rosemary J. & Cantor, Jonathan H., 2017. "Vitamin panacea: Is advertising fueling demand for products with uncertain scientific benefit?," Journal of Health Economics, Elsevier, vol. 55(C), pages 30-44.
    • Handle: RePEc:eee:jhecon:v:55:y:2017:i:c:p:30-44
    DOI: 10.1016/j.jhealeco.2017.06.003
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    More about this item

    Keywords

    Vitamins; Advertising; Consumer behavior;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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