Affiliation:
1. The University of Iowa.
2. The University of Michigan.
Abstract
The relationship between advertising and product quality has been a controversial topic in the literature because of conflicting empirical evidence and divergent theories about advertising's effects. The authors present an integrative theory based on consumer response to advertising and the costs of producing quality products. The theory posits that the relationship between advertising and quality is stronger when (1) quality is produced at lower cost and (2) consumers are less responsive to advertising. Such a scenario is more likely during the latter stages of the product life cycle. An empirical test supports this argument.
Subject
Marketing,Economics and Econometrics,Business and International Management
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Cited by
53 articles.
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