Consumer decisions are rational in most purchasing situations (Bharadwaj et al., 1993).
- Product quality can be judged by the advertising claim with relevant objective information (e.g., price).

Consumer behavior is formed and modified as consumers gain information about the advertised product or service (Eagly and Chaiken, 1993).
- Advertising provides information or utility in helping consumer decisions because the average consumer cannot afford to experience and evaluate all the brands in a certain product category.

Advertising reduces the costs for consumer's purchasing decisions (Vakratsas and Ambler, 1999).
- An advertisement can save the consumer a considerable amount of time and effort in finding or evaluating a product or service.

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 to advertising.

"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 brands.