Advertising and the ambiguity of product experience
(Hoch and Ha, 1986)
- Advertising has dramatic effects on perceptions of quality
when consumers have only ambiguous evidence on a certain product.
- Advertising influences consumers' quality judgments
by affecting the encoding of the physical evidence.
Advertising as a signal of product quality (Tellis and Fornell, 1988)
- The relationship between advertising and quality is stronger
when quality is produced at lower cost and consumers are less responsive
"Market Power Theory" (Comanor and Wilson, 1974)
- High-quality image and differential advantages, established
by increased advertising exposures, reduce consumer price sensitivity
and permit a gradual increase in price.
"Information Theory" (Mitra and Lynch, 1995)
- In contrast to the market power theory, this theory argues that
advertising increases price sensitivity because advertising is used as
an efficient source of information about the existence of other alternative