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The Effect of Media Advertising on Brand Consideration and Choice

Nobuhiko Terui, Masataka Ban, Greg M. Allenby

Marketing Science · 2011 · Volume 30 · Issue 1

DOI: 10.1287/mksc.1100.0590

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.

Keywords

Bayesian analysis, threshold effects, determinants of utility

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