Download Summary of Empirical Research on Advertising Customer

Summary of Empirical Research on
Advertising Customer Products and
Brands
Product and Brand Management
Marketing 6215
Topic:
Advertising Elasticities and Carryover
• Research Findings:
– Advertising Elasticities range from 0 to .20
– Advertising Elasticities for consumer durables are
higher than those for nondurables
– Promotional elasticities are up to 20 times higher that
advertising elasticities
– Advertising elasticities are dynamis and decrease
during the product life cycle. Adevertising elasticities
are therefore higher for ne than established brands
– 90% of advertising effects dissipate after three to
fifteen months
D. Vakratas and T. Ambler, Journal of Marketing (January 1999)
Topic:
Advertising Response, Reach and Frequency
• Research Findings:
– Returns to advertising are usually diminishing; the
first exposure is the most influential for shortterm sales or share gains
– For frequently purchase consumer goods, share
returns to advertising diminish fast, typically after
the third exposure. After the third exposure
advertisers should focus on reach rather than
frequency
D. Vakratas and T. Ambler, Journal of Marketing (January 1999)
Topic:
Advertising and Consumer Price Sensitivity
• Research Findings:
– Price advertising increases price sensitivity,
whereas non-price advertising decreases price
sensitivity. Furthermore, price sensitivity leads to
lower prices.
– When consumers rely on memory to retrieve
product information, advertising increases price
sensitivity; when consumers rely on point-ofpurchase information, advertising decreases price
sensitivity.
D. Vakratas and T. Ambler, Journal of Marketing (January 1999)
Topic:
Advertising Repetition and Ad Likability
• Research Findings:
– In low-involvement purchase situations, repetition
of different versions of an advertisement prevents
early decay of advertising effects
– Brand recall can be maintained at a high level if an
advertising campaign consists of a series of
advertisements
– Ad likability highly correlates with brand
preference
D. Vakratas and T. Ambler, Journal of Marketing (January 1999)