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.
- Bayesian analysis
- Determinants of utility
- Threshold effects
ASJC Scopus subject areas
- Business and International Management