Direct-to-Consumer Advertising in the Presence of Expert Intermediaries
نویسنده
چکیده
This paper empirically investigates how the intensity of direct-to-consumer advertising depends on the sales channel, using data from the US mutual fund industry. The empirical analysis exploits the presence of two sales channels within the industry, one where firms sell directly to end consumers and another where firms sell through expert intermediaries. I find that firms in the direct sales channel spend much more on direct-to-consumer advertising compared to firms in the intermediated sales channel, suggesting that expert intermediaries significantly reduce the effectiveness of direct-toconsumer advertising as a strategic tool.
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