The Effect of Media Advertising on Brand Consideration and Choice

Authors:
Nobuhiko Terui;Masataka Ban;Greg M. Allenby
Affiliations:
Graduate School of Economics and Management, Tohoku University, Sendai 980-8576, Japan;Faculty of Business Administration, Mejiro University, Tokyo 161-8539, Japan;Fisher College of Business, Ohio State University, Columbus, Ohio 43210
Venue:
Marketing Science
Year:
2011

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Abstract

The nature of the effect of media advertising on brand choice is investigated in two product categories in analyses that combine household scanner panel data with media exposure information. Alternative model specifications are tested in which advertising is assumed to directly affect brand utility, model error variance, and brand consideration. We find strong support for advertising effects on choice through an indirect route of consideration set formation that does not directly affect brand utility. Implications for media buying and advertising effects are explored.