Virtually all published empirical research regarding direct-to-consumer advertising (DTCA) has focused on the communicational aspects of the advertising message. At the same time, and without direct evidence, debate has continued regarding the potential effects of DTCA on consumer prices.
The present study is intended to provide insight into part of this debate, and to contribute information which may help in weighing the costs and benefits of DTCA. This study will briefly describe what is called the “dual-stage” theory and its application in other product categories. Discussion will address the potential for relatively lower consumer prices of advertised brands as a result of manufacturers' consumer-directed promotions.
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