Advertising, consumer awareness, and choice: evidence from the U.S. banking industry
نویسندگان
چکیده
How does advertising influence consumer decisions and market outcomes? We utilize detailed data on consumer shopping behavior and choices over bank accounts to investigate the effects of advertising on the different stages of the shopping process: awareness, consideration, and choice. We formulate a structural model with costly search and endogenous consideration sets, and show that advertising in the U.S. banking industry is primarily a shifter of awareness as opposed to consideration or choice. Advertising makes consumers aware of more options, search more, and find better alternatives. This increases the market share of smaller banks and makes the industry more competitive.
منابع مشابه
Advertising , Consumer Awareness and Choice :
Does advertising serve to (i) increase awareness of a product, (ii) increase the likelihood that the product is considered carefully, or (iii) does it shift consumer utility conditional on having considered it? We utilize a detailed data set on consumers’ shopping behavior and choices over retail bank accounts to investigate advertising’s effect on product awareness, consideration, and choice. ...
متن کاملNon-Informational Advertising Informing Consumers: How Advertising Affects Consumers’ Decision-Making in the U.S. Auto Insurance Industry
We investigate the relationship between both advertising content and quantity and several stages of consumers’ decision-making, namely, unaided and aided awareness, search (consideration), and purchase. Understanding how the amount and content of advertisements affect consumers’ decision-making is crucial for companies to effectively and efficiently use their advertising budgets. Our unique ind...
متن کاملRaise the Curtains: The Effect of Awareness About Targeting on Consumer Attitudes and Purchase Intentions
We investigate the effect of awareness about targeting on users’ attitudes towards a targeted ad and behavioral intentions towards the advertised product. Specifically, we study the effect of a notice that makes individuals aware that a particular advertisement has been targeted to them on their attitudes about the product and intentions to purchase the product. We find that, among individuals ...
متن کاملGeneric Advertising for the Seafood Industry
The seafood industry is one part of the food industry competing for consumer protein demand. Generic advertising or promotion offers one approach to expand that demand. Generic promotion programs focus on market expansion involving an entire industry or segment. They involve advertising directly to the final consumer or to institutional or retail buyers, or promotion programs to accompany other...
متن کامل