The Effect of Advertising on Consumer Price Sensitivity

Lakshman Krishnamurthi · S. P. Raj

99 citations0/0 files storedJournal of Marketing Research

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies Consumer Behavior and Marketing Influence

Abstract

The authors investigate how increased advertising affects consumer price sensitivity. First, a conceptual framework integrating the role of advertising content is presented. Next, a methodology for studying the impact of advertising on consumer price sensitivity to brand purchase quantity and consumption is developed. Analyses of diary panel data for an established, frequently purchased brand from an ADTEL advertising field experiment clearly demonstrate that increased advertising lowers price sensitivity. Further, this effect is strong in the high price sensitivity segment for purchase quantity and consumption. In the low price sensitivity segment the effect is marginal. Additional support for these results was obtained by choosing different cutoff points for high sensitivity segmentation.

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2025Advances in Consumer Research 1970Information and Consumer Behavior 1974Advertising as Information 1983Advances in Consumer Research 1956Barriers to New Competition 1965The Impact of Television Advertising: Learning Without Involvement 1979Issue involvement can increase or decrease persuasion by enhancing message-relevant cognitive responses.1976Econometric Measurement of the Duration of Advertising Effect on Sales

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