Advertising as Information

@article{Nelson1974AdvertisingAI,
  title={Advertising as Information},
  author={Phillip J. Nelson},
  journal={Journal of Political Economy},
  year={1974},
  volume={82},
  pages={729 - 754}
}
  • P. Nelson
  • Published 1 July 1974
  • Business
  • Journal of Political Economy
This paper tries to show how the major features of the behavior of advertising can be explained by advertising's information function. For search qualities advertising provides direct information about the characteristics of a brand. For experience qualities the most important information conveyed by advertising is simply that the brand advertises. This contrast in advertising by these qualities leads to significant differences in its behavior. How does advertising provide information to the… 

Advertising in Markets

Advertising, the Matchmaker

We empirically study the informational role of advertising in matching consumers with products when consumers are uncertain about both observable and unobserved program attributes. Our focus is on

The Targeting of Advertising

An important question that firms face in advertising is developing effective media strategy. Major improvements in the quality of consumer information and the growth of targeted media vehicles allow

Behavior-Based Advertising

This paper finds that behavior-based advertising can lead to lower prices in the initial category if the annoyance of receiving advertising is large, and to higher prices if the annoyed consumers are not too large, as consumers expect a possible additional surplus from the category affected by behavior- based advertising.

Should New Products Use Advertising and Price Promotions Simultaneously

This research aims to study how advertising and price promotions interact as consumers with advertising information increases. A rational expectations model shows that an advertising threshold of

Information, Advertising, and the Structure of the Market

The thesis of this paper is that consumer information influences the size distribution of competing sellers' market shares in a particular manner. By measuring the response of appropriate measures of

The Impact of Consumer Search Behavior on Search Advertising in the Hotel Industry

This chapter proposes a conceptual framework to encapsulate our understanding of how consumers' search behavior influences the content in search advertising in the hotel industry. We suggest that

Pricing with Endogenous Direct Advertising in a Monopoly

This paper develops a model of informative advertising in which a firm builds a database using its historical sales records in order to directly target ads on those consumers who have a high

How Does Advertising Affect Market Performance? The Case of Generic Advertising

The effect of advertising on market performance has been a long-standing debate. Advertising that increases the dispersion of consumers’ valuations for advertised goods raises the market power of
...

References

SHOWING 1-10 OF 16 REFERENCES

Information and Consumer Behavior

  • P. Nelson
  • Business, Economics
    Journal of Political Economy
  • 1970
Consumers are continually making choices among products, the consequences of which they are but dimly aware. Not only do consumers lack full information about the prices of goods, but their

Diffusion Processes and Optimal Advertising Policy

This model extends the Nerlove-Arrow model [#54] of the dynamic optimal advertising policy for the firm by relaxing their assumption of a linear advertising cost function and by recognizing that

On the economics of information

  • M. Kochen
  • Political Science
    J. Am. Soc. Inf. Sci.
  • 1972
The primary message from these and other comments made during the panel discussion was the need to probe more deeply into the utility of knowledge for decision-making, to shift priorities toward making data more usable to policy-makers than to collectors and disseminators.

Optimal Advertising and Optimal Quality

Equilibrium conditions for a firm marking decisions with respect to price, quality, and advertising expenditure. Theorems on optimal advertising and optimal quality with fixed prices.

A Note on Monopolistic Competition and Excess Capacity

Chamberlin's most famous conclusion in The Theory of Monopolistic Competition was that equilibrium in monopolistically competitive markets will be characterized by persistent excess capacity. Harold

On the Accuracy of Recording of Consumer Panels: I

This paper describes research in which an empirical model was developed which predicted product recording accuracy based on product position in the diary form used, complexity of entry, frequency of

Advertising and Competition

  • L. Telser
  • Physics
    Journal of Political Economy
  • 1964
Предмет статьи - рассмотрение утверждения о несовместимости рекламы, как элемента стратегии фирмы в конкурентной борьбе, с конкуренцией как теоретической конструкцией. Работа основывается на анализе

A First Course on Stochastic Processes

The Basic Limit Theorem of Markov Chains and Applications and Classical Examples of Continuous Time Markov chains are presented.

The Nature of Equilibrium in Monopolistic Competition

  • H. Demsetz
  • Economics
    Journal of Political Economy
  • 1959
В рамках статьи рассматривается проблематика рыночного равновесия в условиях монополистической конкуренции. Автор статьи ставит под сомнение обоснованность выводов классичесой работы Чембрелина 1933