Advertising: A Measure of Product Quality?

Consumers rely on several methods to acquire information about product quality. The most straightforward, of course, is to "experience" the product-eat it or use it. Low-priced, frequently purchased products require the experience approach, but some goods have "search" characteristics. Information on search goods can be obtained by inspection, asking one's friends, or even reading technical reports. Some consumers rely on price as an indicator of quality, though there seems to be little agreement on the exact price/quality relationship. Some consumers, when faced with new product choices, consistently choose high-priced brands, others feel they get the best value by selecting a medium priced alternative, while many choose the unbranded option. Philip Nelson, an economist at the State University of New York at Binghamton has suggested advertising intensity as yet another index of product quality. Based largely on the experience and search characteristics and rational behavior by consumers, his theory is noteworthy in light of the widespread controversy over the information content of advertising.