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

Anderson, Simon P.; Ciliberto, Federico; Liaukonytė, Jūra; Renault, Régis

doi:10.2139/ssrn.2047106

Cited by 10 publications

(7 citation statements)

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“…They conclude that advertising content persuades by appealing "peripherally" to intuition rather than reason. Anderson et al (2016) investigate the mechanism of comparative advertising in the OTC analgesics industry and find that self-promotion is more effective than outgoing attacks in raising a brand's own perceived quality. Liaukonyte, Teixeira, and Wilbur (2015) study how four different TV ad categories (action, information, emotional and imagery) affect online shopping behavior.…”

Section: Relevant Literaturementioning

confidence: 99%

Non-Informational Advertising Informing Consumers: How Advertising Affects Consumers' Decision-Making in the U.S. Auto Insurance Industry

Tsai¹,

Honka²

2018

SSRN Journal

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We investigate the relationship between both advertising content and quantity and several stages of consumers' decision-making, namely, unaided and aided awareness, search (consideration), and purchase. Understanding how the amount and content of advertisements affect consumers' decision-making is crucial for companies to effectively and efficiently use their advertising budgets. Our unique individual-level data contain information on consumers' purchases, consideration and awareness sets, demographic variables, and perceived prices for consumers between 2008 and 2016. We supplement these data with data on advertising quantities for all and advertising content for the main three media channels (TV, Internet, and magazines). We account for the endogeneity of the advertising decision using the regression discontinuity approach suggested by Shapiro (forthcoming). Our results reveal that advertising quantity significantly increases consumer (unaided and aided) awareness, but has no effect on consideration and choice. This finding is consistent with the informative role of advertising. Interestingly, the advertising content that leads to consumers' increased awareness is of non-informational nature (brand name focused and funny/entertaining content) implying that the effect on awareness is coming from non-informational content leading to better brand recall. And lastly, our preliminary results show no systematic evidence of vulnerable consumer groups (racial minorities, low education or low income consumers) being adversely affected by advertising.

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Section: Relevant Literaturementioning

confidence: 99%

Non-Informational Advertising Informing Consumers: How Advertising Affects Consumers' Decision-Making in the U.S. Auto Insurance Industry

Tsai¹,

Honka²

2018

SSRN Journal

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“…A non-comparative advertisement sends a positive message to consumers that promotes the quality of firm is product. A comparative advertisement, in line with Anderson et al (2015), conveys a push-me-pull-you dual message to consumers presenting the sponsoring firm is product as of superior quality to that of the rival firm js product. It thus increases a consumers perception of the sponsoring firms product quality and decreases her perception of the rivals product quality.…”

Section: The Modelmentioning

confidence: 99%

“…Therefore, by increasing the consumers’ perceived quality, it shifts the firm's demand outwards. Comparative advertising instead has a push‐me‐pull‐you dual effect (Anderson et al ., ): Not only it promotes the quality of the sponsoring firm's product, but also, by presenting it as superior to that of the rival's, it decreases the consumers’ perceived quality of the targeted product. Comparative advertising thus increases the firm's own demand and decreases the demand of the rival.…”

Section: Introductionmentioning

confidence: 99%

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Non‐Comparative and Comparative Advertising in Oligopolistic Markets

Alipranti

Mitrokostas

Petrakis

2017

The Manchester School

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily reflect those of the editor. Terms of use: Documents in Non-comparative and Comparative Advertising in Oligopolistic MarketsMaria Alipranti Evangelos Mitrokostas Emmanuel Petrakis y October 2016 AbstractWe study …rms' advertising strategies in an oligopolistic market in which both noncomparative and comparative advertising are present. We show that in equilibrium …rms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensi…es. Interestingly, the use of comparative advertising may lead to higher consumers'surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.JEL Classi…cation: L13, M37.

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“…While the literature on firm advertising content most often focuses on information (or lack thereof), there are a few papers that look specifically at negative and contrast advertising. Anderson et al (2015) examine comparative advertising in the over-the-counter (OTC) analgesics industry. They model comparative advertising as having two effects: increasing the positive perception of own brand ("push") and decreasing the brand image of the targeted rival ("pull").…”

Section: Negative and Comparative Advertisingmentioning

confidence: 99%

Swiftboating: Misleading Advertising in Presidential Elections

Zhang¹

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The term "swiftboating" arose out of advertisements aired in the 2004 presidential campaign and has now come to refer to any untrue political advertising. I develop an equilibrium model of voting behavior and candidate advertising in a presidential election with misleading and non-misleading advertising. I estimate the model using a unique dataset I created by systematically quantifying misleading statements in political advertisement videos in the 2008 election using FactCheck.org and Politi-Fact.com. A candidate chooses misleading and non-misleading advertising in order to maximize his expected electoral votes in exogenously-determined battleground states.I find that the two candidates spent over $38 million on misleading advertising. At the levels of advertising observed in 2008, I find that the gross effect of misleading advertising is, on average across television markets, more than twice as large as the gross effect of non-misleading advertising in terms of increasing vote share. I calculate that the shadow price of one electoral vote to be $9.7 million for McCain and $15.2 million for Obama. In a counterfactual analysis where candidates cannot air misleading advertising, three states (Missouri, Indiana, and North Carolina) have different electoral outcomes, and the equilibrium level of advertising falls by 21%, with the decrease in non-misleading advertising accounting for 26% of that change.In a second counterfactual, I repeal the laws against misleading advertising in the six battleground states that had them in place in 2008, and I find that misleading advertising in those states increases by 50%, and this change leads to a different electoral winner in the state of North Carolina.JEL Classifications: D72, L10, M37

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

Cited by 10 publications

References 79 publications

Non-Informational Advertising Informing Consumers: How Advertising Affects Consumers' Decision-Making in the U.S. Auto Insurance Industry

Non-Informational Advertising Informing Consumers: How Advertising Affects Consumers' Decision-Making in the U.S. Auto Insurance Industry

Non‐Comparative and Comparative Advertising in Oligopolistic Markets

Swiftboating: Misleading Advertising in Presidential Elections

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