Non-Comparative versus Comparative Advertising of Quality

Emons, Winand; Fluet, Claude

doi:10.2139/ssrn.1998999

Cited by 4 publications

(5 citation statements)

References 21 publications

(15 reference statements)

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“…The comparative advertising version of this theory expounded in Barigozzi, Garella, and Peitz (2006) relies on the possibility of a law-suit to punish an untrue claim. Recently, Emons and Fluet (2008) also took a signaling approach to comparative advertising, although their analysis relies on advertising being more costly the more extreme are the claims it makes, instead of a law-suit.…”

Section: Modeling Comparative Advertisingmentioning

confidence: 99%

“…Essentially, advertising is only informative for Þrst buyers, while it is both informative and persuasive for repeat buyers. 23 This is a clever 20 The problem is both computational complexity and multiplicity of solutions. One would have to solve for rational and consistent expectations that consumers and producers have on the future values of the state variables, which means solving for a Þxed point.…”

Section: Empirical Literaturementioning

confidence: 99%

“…Thus, the interpretation of the role of advertising as persuasive or informative is not transparent. 23 Ackerberg (2001Ackerberg ( , 2003 argues that the observed facts that "experienced" consumers (those who have previously bought Yoplait 150) are much less sensitive to advertising than inexperienced ones is strong evidence in favor of advertising fulÞlling an informative role rather than a "prestige" one. However, he does not control for the content of the particular ads in his sample; nor does he allow for the possibility (in his interpretation) that advertising 'prestige' could exhibit strong threshold effects, which could also account for the observed behavior.…”

Section: Empirical Literaturementioning

confidence: 99%

See 2 more Smart Citations

Push‐me pull‐you: comparative advertising in the OTC analgesics industry

Anderson

Ciliberto

Liaukonytė

et al. 2016

The RAND J of Economics

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We investigate how Þrms strategically use self-promoting and comparative advertising to push up own brand perception along with pulling down the brand images of targeted rivals. To this purpose, we Þrst watch individual video Þles of all TV advertisements in the US OTC analgesics industry for the 2001-2005 time period to code the content of each ad and organize it into a unique and novel dataset. Then, we develop a simple model of targeting advertising, which we use to derive the advertising Þrst order conditions that predict oligopoly equilibrium relations between advertising levels (for different types of advertising) and market shares.We Þnd: i) higher market shares are associated with higher self-promotion advertising; ii) outgoing attacks are half as powerful as direct self-promotion ads in raising own perceived quality; iii) every dollar spent by its competitors on incoming attacks has a statistically and economically strong effect on the perceived quality of the attacked brand.

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Section: Modeling Comparative Advertisingmentioning

confidence: 99%

Section: Empirical Literaturementioning

confidence: 99%

Section: Empirical Literaturementioning

confidence: 99%

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Push‐me pull‐you: comparative advertising in the OTC analgesics industry

Anderson

Ciliberto

Liaukonytė

et al. 2016

The RAND J of Economics

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show abstract

“…Anderson and Renault (2009) model it as directly informative revelation of horizontal match characteristics of products. 5 Barigozzi, Garella, and Peitz (2009) and Emons and Fluet (2011) apply the signaling model of advertising (which goes back to insights in Nelson, 1974, and was formalized in Kihlstrom andRiordan, 1984, andMilgrom andRoberts, 1986). Our theory engages the complementary view with the added element of pulling down the rival.…”

Section: Introductionmentioning

confidence: 98%

Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry

et al. 2012

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We model comparative advertising as brands pushing up own brand perception and pulling down the brand image of targeted rivals. We watched all TV advertisements for OTC analgesics 2001-2005 to construct matrices of rival targeting and estimate the structural model. These attack matrices identify diversion ratios and hence comparative advertising damage measures. We …nd that outgoing comparative advertising attacks are half as powerful as self-promotion in raising own perceived quality and cause more damage to the targeted rival than bene…t to the advertiser. Comparative advertising causes most damage through the pull-down e¤ect and has substantial bene…ts to other rivals.

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“…Advertising is thought to work by providing information and through persuasion (see Bagwell, 2007;DellaVigna and Gentzkow, 2010, for reviews), but economists have paid less attention to comparative advertising specifically. Anderson and Renault (2009), Barigozzi et al (2009), Emons andFluet (2012) provide game theoretical models of comparative advertising in product markets; Anderson et al (2012Anderson et al ( , 2013 provide empirical analysis in the over-the-counter analgesics industry. Our results add to the growing empirical literature on the topic.…”

Section: Introductionmentioning

confidence: 99%

Negative Campaigning, Fundraising, and Voter Turnout: A Field Experiment

2013

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JEL classification: D72 C93 M37 Keywords:Voter turnout Negative campaigning Comparative advertising Fundraising Field experiment a b s t r a c t Why do candidates risk alienating voters by engaging in negative campaigning? One answer may lie in the large empirical literature indicating that negative messages are more effective than positive messages in getting individuals to do many things, including voting and purchasing goods. Few contributions to this literature, however, gather data from a field environment with messages whose tone has been validated. We conduct field experiments in two elections for local office which test the effect of confirmed negative and positive letters sent to candidates' partisans on two measurable activities: donating to the candidate and turning out to vote. We find that message tone increases partisan support in ways that may help explain the persistence of negative campaigning. Negative messages are no better than positive messages at earning the candidates donations, but negative messages yield significantly higher rates of voter turnout among the candidates' partisans relative to positive messages. Positive messages, however, are not neutral relative to no message.

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Non-Comparative versus Comparative Advertising of Quality

Cited by 4 publications

References 21 publications

Push‐me pull‐you: comparative advertising in the OTC analgesics industry

Push‐me pull‐you: comparative advertising in the OTC analgesics industry

Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry

Negative Campaigning, Fundraising, and Voter Turnout: A Field Experiment

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