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Price Sensitivity and Television Advertising Exposures: Some Empirical Findings

Author

Listed:
  • Vinay Kanetkar

    (University of Toronto)

  • Charles B. Weinberg

    (University of British Columbia)

  • Doyle L. Weiss

    (University of Iowa)

Abstract

Empirical research (as well as theoretical reasoning) has led to contradictory findings with regard to whether increases in brand advertising activities lead to increases or decreases in consumer price sensitivity. Lack of data to measure the exposure of individual households to advertisements and to capture competitive activities has been an important limitation to date. This study, using single source data for a midwestern US market, finds that increased advertising exposures are associated with increases in a household's brand choice price sensitivity for two frequently purchased consumer products. However, under high levels of advertising exposure, it is possible for a household's brand choice price sensitivity to decrease.

Suggested Citation

  • Vinay Kanetkar & Charles B. Weinberg & Doyle L. Weiss, 1992. "Price Sensitivity and Television Advertising Exposures: Some Empirical Findings," Marketing Science, INFORMS, vol. 11(4), pages 359-371.
    • Handle: RePEc:inm:ormksc:v:11:y:1992:i:4:p:359-371
    DOI: 10.1287/mksc.11.4.359
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    Citations

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    Cited by:

    1. Abraham Gyamfi Ababio & Emmanuel Erastus Yamoah, 2016. "Effect of Advertising on the Brand Loyalty of Cosmetic Products among College Students," International Review of Management and Marketing, Econjournals, vol. 6(1), pages 11-15.
    2. Victor F. Araman & Ioana Popescu, 2010. "Media Revenue Management with Audience Uncertainty: Balancing Upfront and Spot Market Sales," Manufacturing & Service Operations Management, INFORMS, vol. 12(2), pages 190-212, December.
    3. Kim, Chung Koo, 1996. "The interaction between price and long-run variables in a multinational brand market," Journal of Business Research, Elsevier, vol. 37(1), pages 1-14, September.
    4. Chan, Tat Y. & Narasimhan, Chakravarthi & Yoon, Yeujun, 2017. "Advertising and price competition in a manufacturer-retailer channel," International Journal of Research in Marketing, Elsevier, vol. 34(3), pages 694-716.
    5. Yuxin Chen & Yogesh V. Joshi & Jagmohan S. Raju & Z. John Zhang, 2009. "A Theory of Combative Advertising," Marketing Science, INFORMS, vol. 28(1), pages 1-19, 01-02.
    6. Brett R. Gordon & Wesley R. Hartmann, 2013. "Advertising Effects in Presidential Elections," Marketing Science, INFORMS, vol. 32(1), pages 19-35, June.
    7. Martin O'Connell & Pierre Dubois & Rachel Griffith, 2022. "The Use of Scanner Data for Economics Research," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 723-745, August.
    8. Lynne Pepall & Joseph Reiff, 2017. "Targeted Advertising and Cumulative Exposure Effects: The Impact of Banning Advertising to Children in Quebec," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(3), pages 235-256, November.
    9. Ajay Kumar & Ruchi Sharma, 2017. "Perceived Influential Aspects of TV Advertising," Paradigm, , vol. 21(2), pages 192-210, December.
    10. Tülin Erdem & Michael Keane & Baohong Sun, 2008. "The impact of advertising on consumer price sensitivity in experience goods markets," Quantitative Marketing and Economics (QME), Springer, vol. 6(2), pages 139-176, June.
    11. Low, Wen-Shinn & Lee, Jeng-Da & Cheng, Soo-May, 2013. "The link between customer satisfaction and price sensitivity: An investigation of retailing industry in Taiwan," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 1-10.
    12. Masataka Ban & Nobuhiko Terui & Makoto Abe, 2011. "A brand choice model for TV advertising management using single-source data," Marketing Letters, Springer, vol. 22(4), pages 373-389, November.
    13. Abe, Makoto, 1995. "Price and advertising strategy of a national brand against its private-label clone : A signaling game approach," Journal of Business Research, Elsevier, vol. 33(3), pages 241-250, July.
    14. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    15. Bibek Banerjee & Subir Bandyopadhyay, 2003. "Advertising Competition Under Consumer Inertia," Marketing Science, INFORMS, vol. 22(1), pages 131-144, January.
    16. Nobuhiko Terui & Masataka Ban & Greg M. Allenby, 2011. "The Effect of Media Advertising on Brand Consideration and Choice," Marketing Science, INFORMS, vol. 30(1), pages 74-91, 01-02.
    17. Terry Clark & Thomas Martin Key, 2021. "The methodologies of the marketing literature: mechanics, uses and craft," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 416-431, December.

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