Browse > Article
http://dx.doi.org/10.5762/KAIS.2012.13.12.5752

Effect of Consumer Expectation Measured by Consumers on Advertising Expenditures  

Kim, Yura (College of Business Administration, Kookmin University)
Joo, Jaewoo (College of Business Administration, Kookmin University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.13, no.12, 2012 , pp. 5752-5758 More about this Journal
Abstract
We investigate whether consumers' expectations affect managers' decisions. In particular, we examined whether the expectations that consumers make about the changes of their financial situations and family incomes are positively related to the decisions that managers make about advertising expenditures. We analyzed consumers' expectations as well as the advertising expenditures of 6,018 firms between 1991 and 2011. Our analysis supported our hypothesis. Our findings contribute to the discussions regarding the effect of consumer expectations on manager decisions as well as provide practical implications to advertising managers.
Keywords
Advertising; Consumer expectation;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Bigne, J. Enrique (1995). Advertising Budget Practices: A Review. Journal of Current Issues & Research in Advertising. 17 (22). 17-31, Article(CrossRefLink)   DOI
2 Burch, Susan W. and Stephen E. Gordon (1984). The Michigan Surveys and the Demand for Consumers Durables, Business Economics, October.
3 Burch, Susan W. and Stephen E. Gordon (1985), The Problem of Inference in Consumer Surveys, Board of Governors of the Federal Reserve System, Working Paper no. 50, June.
4 Chauvin, K. W., & Hirschey, M. (1993). Advertising, R&D Expenditures, and the Market Value of the Firm. Financial Management, 22 (Winter), 128-140.   DOI
5 Corkindale, David and Gordon Wills (1975). Setting Advertising Budgets. Management Decisions. 13 (3). 124-141.   DOI
6 Easaw, J. Z. (2004). Evaluating consumer sentiments as predictors of UK household consumption behavior: Are they accurate and useful? International Journal of Forecasting Vol. 20(4) 671-681.   DOI
7 Garner, (1991). Forecasting Consumer Spending: Should Economists Pay Attention to Consumer Confidence Survey? Economic Review, May/June 57-71.
8 Hymans, Saul H. (1970). Consumer Durable Spending: Explanation and Prediction. Brookings Papers on Economic Activity. No. 2.
9 Katona, George. (1975). Psychological Economics. New York: Elsevier Scientific Publishing Company.
10 Lieberman, Charles (1991). No Tears, No Excuses. Manufacturers Honover, Indicators, April 12.
11 Ludvigson, S. C. (2004). Consumer confidence and consumer spending. Journal of Economic Perspectives Vol. 18(2): 29-50.   DOI
12 Mitchell, Lionel A.(1993). An Examination of Methods of Setting Advertising Budgets: Practice and the Literature. European Journal of Marketing. 27 (5). 5-21, Article(CrossRefLink)   DOI   ScienceOn