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Advertising and brand attitudes: Evidence from 575 brands over five years

  • Rex Yuxing Du
  • Mingyu Joo
  • Kenneth C. Wilbur
Article
  • 160 Downloads

Abstract

Little is known about how different types of advertising affect brand attitudes. We investigate the relationships between three brand attitude variables (perceived quality, perceived value and recent satisfaction) and three types of advertising (national traditional, local traditional and digital). The data represent ten million brand attitude surveys and $264 billion spent on ads by 575 regular advertisers over a five-year period, approximately 37% of all ad spend measured between 2008 and 2012. Inclusion of brand/quarter fixed effects and industry/week fixed effects brings parameter estimates closer to expectations without major reductions in estimation precision. The findings indicate that (i) national traditional ads increase perceived quality, perceived value, and recent satisfaction; (ii) local traditional ads increase perceived quality and perceived value; (iii) digital ads increase perceived value; and (iv) competitor ad effects are generally negative.

Keywords

Advertising Brand attitude Brand tracking metrics Media mix models 

JEL Classification

M31 M37 L81 

Notes

Acknowledgments

The authors thank Wes Hartmann, two anonymous reviewers, and numerous seminar audiences for helpful comments and discussions. This study was made possible by the authors’ employers, and data were drawn from standard Kantar and YouGov data sources, but the analysis is the authors’ alone as it was not funded or otherwise influenced by any other party.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Bauer College of BusinessUniversity of HoustonHoustonUSA
  2. 2.School of BusinessUniversity of CaliforniaRiversideUSA
  3. 3.Rady School of ManagementUniversity of CaliforniaSan DiegoUSA

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