Advertising, consumer awareness, and choice: evidence from the U.S. banking industry.
How does advertising influence consumer decisions and market outcomes? We utilize detailed data on consumer shopping behavior and choices over bank accounts to investigate the effects of advertising on the different stages of the shopping process: awareness, consideration, and choice. We formulate a...
| Published in: | RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 3; pp. 611 - 647 |
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| Main Authors: | , , |
| Format: | Article |
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Wiley-Blackwell
Fall2017
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=124623601&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 124623601 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Fall2017 vid: 48 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 124623601 10.1111/1756-2171.12188 ppf: 611 ppct: 36 formats: fmt: – @attributes: type: T – @attributes: type: P size: 1.3MB tig: atl: Advertising, consumer awareness, and choice: evidence from the U.S. banking industry. aug: au: Honka, Elisabeth Hortaçsu, Ali Vitorino, Maria Ana affil: University of California Los Angeles University of Chicago and NBER University of Minnesota su: Consumer behavior Banking industry Choice (Psychology) Banking industry advertising Market share sug: subj: Consumer behavior Banking industry Choice (Psychology) Commercial Banking Personal and commercial banking industry Savings Institutions Other Depository Credit Intermediation Banking industry advertising Market share ab: How does advertising influence consumer decisions and market outcomes? We utilize detailed data on consumer shopping behavior and choices over bank accounts to investigate the effects of advertising on the different stages of the shopping process: awareness, consideration, and choice. We formulate a structural model with costly search and endogenous consideration sets, and show that advertising in the U.S. banking industry is primarily a shifter of awareness as opposed to consideration or choice. Advertising makes consumers aware of more options, search more, and find better alternatives. This increases the market share of smaller banks and makes the industry more competitive. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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