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The Effect of Perceived Advertising Costs on Brand Perceptions

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  • Kirmani, Amna
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    Abstract

    How, why, and when consumers use their perceptions of advertising costs as cues to a new brand's quality-related attributes is examined. It is proposed that consumers perceive advertising costs as deviations from expectations about typical costs in the product category. Perceived costs are hypothesized to affect brand perceptions in an inverted-U fashion with extemely high costs leading to negative perceptions. The level of involvement and informativeness of ad content moderate this relationship. An experiment in which subjects are exposed to an ad for a new product provides evidence for the proposed model. Copyright 1990 by the University of Chicago.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Consumer Research.

    Volume (Year): 17 (1990)
    Issue (Month): 2 (September)
    Pages: 160-71

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    Handle: RePEc:ucp:jconrs:v:17:y:1990:i:2:p:160-71

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    Web page: http://www.journals.uchicago.edu/JCR/

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    Cited by:
    1. Gergaud, Olivier & Livat, Florine, 2007. "How do consumers use signals to assess quality?," Working Papers 37296, American Association of Wine Economists.
    2. Doraszelski, Ulrich & Draganska, Michaela & Clark, C. Robert, 2007. "Information or Persuasion? An Empirical Investigation of the Effect of Advertising on Brand Awareness and Perceived Quality using Panel Data," Research Papers 1971, Stanford University, Graduate School of Business.
    3. Abraham Koshy & . Abhishek, 2010. "Quality Perceptions of Private Label Brands Conceptual Framework and Agenda for Research," Working Papers id:2756, eSocialSciences.
    4. Pieters, R. & Rosbergen, E. & Hartog, M., 1996. "Visual attention to advertising: The impact of motivation and repetition," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73693, Tilburg University.
    5. Moorthy, Sridhar & Hawkins, Scott A., 2005. "Advertising repetition and quality perception," Journal of Business Research, Elsevier, vol. 58(3), pages 354-360, March.
    6. Kirmani, Amna & Lee, Michelle P. & Yoon, Carolyn, 2004. "Procedural priming effects on spontaneous inference formation," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 859-875, December.
    7. Paul M. Patterson & Timothy J. Richards, 2000. "Newspaper advertisement characteristics and consumer preferences for apples: A mimic model approach," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 159-177.
    8. C. Clark & Ulrich Doraszelski & Michaela Draganska, 2009. "The effect of advertising on brand awareness and perceived quality: An empirical investigation using panel data," Quantitative Marketing and Economics, Springer, vol. 7(2), pages 207-236, June.
    9. Bosmans, A & Warlop, Luk, 2005. "How vulnerable are consumers to blatant persuasion attempts?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/122263, Katholieke Universiteit Leuven.

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