You Get a Book! Demand Spillovers, Combative Advertising, and Celebrity Endorsements
AbstractThis paper studies the economic effects of endorsements. In the publishing sector, endorsements from the Oprah Winfrey Book Club are found to be a business stealing form of advertising that raises title level sales without increasing the market size. The endorsements decrease aggregate adult fiction sales; likely as a result of the endorsed books being more difficult than those that otherwise would have been purchased. Economically meaningful sales increases are also found for non-endorsed titles by endorsed authors. These spillover demand estimates demonstrate a broad range of benefits from advertising for firms operating in a multiproduct brand setting.
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Date of creation: Mar 2012
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Find related papers by JEL classification:
- D20 - Microeconomics - - Production and Organizations - - - General
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- I2 - Health, Education, and Welfare - - Education
- L0 - Industrial Organization - - General
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L8 - Industrial Organization - - Industry Studies: Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-28 (All new papers)
- NEP-CUL-2012-03-28 (Cultural Economics)
- NEP-MKT-2012-03-28 (Marketing)
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