Investigates empirically the importance of buyer characteristics as well as product and service classifications on the informational content of advertising supply by sellers utilizing Yellow Pages advertisements from six US cities. The analysis and tests extend the categories used in previous tests by including so‐called “credence goods” by analysing the impact of alternative buyer characteristics as proxies for time and information costs. The intra‐city and, to a lesser extent, inter‐city comparisons lend support to the contemporary theory of advertising as information.
Journal of Economic Studies – Emerald Publishing
Published: Apr 1, 1995
Keywords: Advertising; Buying behaviour; Consumer goods; Market segmentation; USA
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