TITLE

Advertising and Consumer Awareness of New, Differentiated Products

AUTHOR(S)
Barroso, Alicia; Llobet, Gerard
PUB. DATE
December 2012
SOURCE
Journal of Marketing Research (JMR);Dec2012, Vol. 49 Issue 6, p773
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article proposes a novel approach to assess the dynamic effect that advertising expenditures have on which products consumers include in their choice sets. In a discrete-choice model, consumers face choice sets that evolve according to their awareness of each product. Advertising expenditures have a dynamic effect in the sense that they raise consumer awareness of a product, increasing present and future sales. To estimate this effect, the authors explicitly model the firms' dynamic advertising decisions and illustrate the model using data from the Spanish automobile market. The results show that the effect of advertising on awareness is dynamic and that accounting for it is crucial in explaining the evolution of product sales over its life cycle. Furthermore, the authors demonstrate that the awareness process can be significantly sped up by advertising. Thus, there is a great heterogeneity in the length of the awareness process among products, depending on the level of advertising expenditures; it may range from one to six years.
ACCESSION #
83513330

 

Related Articles

  • How Far Do Feelings Go? How Attachments Influence Brand Extensions. Fedorikhin, Alexander (Sasha); Park, C. Whan; Thomson, Mathew // Advances in Consumer Research;2006, Vol. 33 Issue 1, p631 

    The article focuses on the results of research which examined the role consumer attitude, mood and perception plays in the success of new products which are marketed as extensions of existing brands of products. A discussion of the importance of having a new product fit in with existing product...

  • Temporal Differences in the Role of Marketing Communication in New Product Categories. NARAYANAN, SRIDHAR; MANCHANDA, PUNEET; CHINTAGUNTA, PRADEEP K. // Journal of Marketing Research (JMR);Aug2005, Vol. 42 Issue 3, p278 

    The authors investigate the changing role of marketing communication over the life cycle of a new product category. They postulate two effects of marketing communication on consumers' choices: an “indirect effect” through reduction of uncertainty about product quality and a...

  • Exploring Celebrity Licensing as Opposed to Celebrity Endorsement : A Consumer Perspective. Kapoor, Payal S. // Journal of Marketing & Communication;May-Aug2013, Vol. 8 Issue 4, p13 

    Celebrity licensing is becoming an important tool for the marketers. Marketers are exploring newer ways to involve celebrities in the product development and promotion, in order to create perceivable differentiation in the market. The main purpose of this research is to understand consumer...

  • Innovations in Product Functionality: When and Why Are Explicit Comparisons Effective? Ziamou, Paschalina (Lilia); Ratneshwar, S. // Journal of Marketing;Apr2003, Vol. 67 Issue 2, p49 

    The authors investigate the effects of explicit comparisons in differentiating innovations that offer new functionalities to the consumer. Although marketing communications commonly employ explicit comparisons in launching new product functionalities, the authors suggest that such comparisons...

  • Increasing the Informational Content of Reach and Frequency Estimates. Headen, Robert S.; Klompmaker, Jay E.; Teel Jr., Jesse E. // Journal of Advertising;Winter76, Vol. 5 Issue 1, p18 

    This article discusses the limitations of present methods of analyzing the coverage of advertising schedules and presents a technique for obtaining additional information from traditional measures of schedule coverage. This technique models entire patterns of audience exposure to commercials by...

  • NUMB AND NUMBER. Karvilla, Steven // GQ: Gentlemen's Quarterly;Mar2006, Vol. 76 Issue 3, p241 

    The article presents informations about the three popular brands of genital desensitizers including Stud 100, Mandelay and Durex Play Longer to deal with premature ejaculation.

  • Consumer trends lead to differentiation.  // Progressive Grocer;5/1/2004, Vol. 83 Issue 7, p56 

    Focuses on the need of retailers to differentiate themselves. Way manufacturers can help retailers to differentiate themselves; Important strategy for retailers to differentiate; Questions raised by the process of differentiation and bringing in new products and categories.

  • Competitive Interference Effects in Consumer Memory for Advertising: The Role of Brand Familiarity. Kent, Robert J.; Allen, Chris T. // Journal of Marketing;Jul94, Vol. 58 Issue 3, p97 

    Although consumers often encounter ads for familiar brands, previous advertising interference studies have used ads for low-familiarity brands. The authors focus on brand familiarity's role in increasing ad memorability and moderating competitive interference. They conducted a factorial...

  • Applying an emphatic design model to gain an understanding of consumers' cognitive orientations and develop a product prototype. Luh, Ding-Bang; Ma, Chia-Hsiang; Hsieh, Ming-Hsuan; Huang, Cheng-Yong // Journal of Industrial Engineering & Management;Jun2012, Vol. 5 Issue 1, p229 

    Purpose: Consideration of consumer opinion is a key success factor when it comes to developing a new product. However, businesses may lack suitable methods for this, and designers may lack practical training, with both situations meaning that firms are unable to precisely adopt consumer...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics