Resource title

What's advertising content worth? Evidence from a consumer credit marketing field experiment

Resource image

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Resource description

Firms spend billions of dollars each year advertising consumer products in order to influence demand. Much of these outlays are on the creative design of advertising content. Creative content often uses nuances of presentation and framing that have large effects on consumer decision making in laboratory studies. But there is little field evidence on the effect of advertising content as it compares in magnitude to the effect of price. We analyze a direct mail field experiment in South Africa implemented by a consumer lender that randomized creative content and loan price simultaneously. We find that content has significant effects on demand. There is also some evidence that the magnitude of content sensitivity is large relative to pricesensitivity. However, it was difficult to predict which particular types of content would significantly impact demand. This fits with a central premise of psychology context mattersand highlights the importance of testing the robustness of laboratory findings in the field.

Resource author

Marianne Bertrand, Dean S. Karlan, Sendhil Mullainathan, Eldar Shafir, Jonathan Zinman

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/27007

Resource license

Adapt according to the presented license agreement and reference the original author.