Information processing theory and findings on advertising response suggest a nonlinear response to repetitive ad exposure, mediated by brand loyalty. The response can occur in either or both of the hypothesized stages of purchase: brand choice and quantity choice. A tobit-type analysis of scanner purchases (with TV exposures) of a mature product category appears to support these hypotheses. The effect of advertising is generally nonlinear and its impact on volume purchased is mediated by brand loyalty. Advertising seems to reinforce preference for current brands rather than stimulate brand switching. However, features, displays, and especially price have a stronger impact on response than does advertising. The effect of brand loyalty dominates that of the other variables.
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