We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising changes. With the introduction of a smooth transition function, the model features smooth rather than abrupt parameter changes between regimes. We apply the model to nonalcoholic beverage data in the United States for 1974 through 2005 to investigate asymmetric advertising respons...

Comparative advertising content di¤ers from generic. We discover that dissipative advertising has consequences depending upon content and cost. Comparison advertising may trigger legal action by rival ...rms that are named. In the model an entrant signals its product quality. By a comparative ad the entrant refers to the incumbent’s product. We show that comparison can enhance the signaling pot...

The majority of South African attorneys do not enjoy the benefits that may be derived from the marketing and advertising of their services. They seem to be unaware or do not make use of marketing and advertising opportunities to promote their firms and the services they render. The lack of marketing knowledge, ignorance of the value of advertising, as well as the perception that advertising wil...

The paper explores the idea that advertising interferes with consumers’ memories of product experiences. We consider a two-period model where a monopolist sells an experience good to a buyer who may only imperfectly recall her first period experience. When advertising activates memory, it enables learning and may induce the buyer to try out the good initially. Moreover, while costly advertising...

Although information technology has transformed advertising dramatically in the past few years, the greatest changes may lie in the future. Researchers in Pervasive and Ubiquitous Computing have spent the last few years prototyping and studying context-aware systems. These systems use sensors on mobile phones and in the infrastructure to build digital models of the world. This technology has no...

We examine the role of language choice in advertising to bilinguals in global markets. Our results reveal the existence of asymmetric language effects for multinational corporations (MNCs) versus local firms when operating in a foreign domain, such that the choice of advertising language affects advertising effectiveness for MNCs but not local companies. Also, different language formats (e.g., ...

We compare the advertising intensity and content of programming in a market with competing media platforms. With pay-tv media platforms have two sources of revenues, advertising revenues and revenues from viewers. With free-to-air media platforms receive all revenues from advertising. We show that if viewers strongly dislike advertising, the advertising intensity is greater under free-to-air te...

This paper studies the strategic aspects of contextual advertising. Such advertising entails the display of relevant ads based on the topic of the content a consumer views and takes advantage of the possibility that consumers’ content browsing preferences are indicative of their product preferences. The results show that contextual targeting impacts advertiser profit in two ways: first, adverti...

I consider an oligopoly model where, prior to price competition, firms invest in persuasive advertising and induce brand loyalty in consumers who would otherwise buy the cheapest alternative on the market. This setting, in which persuasive advertising is introduced to homogenous product markets, provides an alternative explanation for price dispersion phenomena. Despite ex-ante symmetry, the eq...

This paper assesses the role of advertising in the demand of a differenciated and infrequently purchased good market. Advertising enters directly in the demand as goodwill stock with decreasing returns. Demand is specified and estimated in a discrete choice model approach, which allows us to compute the predatory and spillover effects of advertising and different sensibilities to advertising ac...