Advertisement Size and Goods-Buyer Characteristics: Some Empirical Results

Document Type

Article

Publication Date

1995

Department

Marketing and Fashion Merchandising

Abstract

This article provides empirical tests of hypotheses developed by Phillip Nelson and others within the economics of information literature since 1961. Specifically, this study provides empirical justification of Nelson's hypothesis regarding the size of advertisements for various types of goods, such as search goods, experience goods, and credence goods. Buyer differences (income, mobility) are also employed in order to test the robustness of these seminal hypotheses. The econometric results presented here provide some support for the notion that advertisements for goods whose quality can be verified only after purchase (if at all) goes beyond the relation of product brand to product function, and that the size of the advertisement does have important implications regarding seller reputation.

Publication Title

Social Science Journal

Volume

32

Issue

2

First Page

207

Last Page

212

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