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

Author

Listed:
  • Rex Yuxing Du

    (University of Houston)

  • Mingyu Joo

    (University of California)

  • Kenneth C. Wilbur

    (University of California)

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.

Suggested Citation

  • Rex Yuxing Du & Mingyu Joo & Kenneth C. Wilbur, 2019. "Advertising and brand attitudes: Evidence from 575 brands over five years," Quantitative Marketing and Economics (QME), Springer, vol. 17(3), pages 257-323, September.
    • Handle: RePEc:kap:qmktec:v:17:y:2019:i:3:d:10.1007_s11129-018-9204-6
    DOI: 10.1007/s11129-018-9204-6
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    3. Koushyar Rajavi & Donald R. Lehmann & Kevin Lane Keller & Alireza Golmohammadi, 2023. "Ad expenditures and perceived quality: a replication and extension," Marketing Letters, Springer, vol. 34(1), pages 161-169, March.

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    More about this item

    Keywords

    Advertising; Brand attitude; Brand tracking metrics; Media mix models;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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