An analysis of some problems in advertising and quality competition with special reference to consumer durables markets
Morris, David, Ph.D. (1975) An analysis of some problems in advertising and quality competition with special reference to consumer durables markets. PhD thesis, University of Warwick.
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Official URL: http://webcat.warwick.ac.uk/record=b1747544~S1
The thesis examines advertising behaviour and quality-setting
behaviour at the firm level. In both cases economic theory is used to
discover theoretically optimal behaviour patterns which may then be compared
with the behaviour patterns exhibited by firms operating in the real world.
The 'neoclassical' economic model of advertising is reviewed and a
general version embodying the 'marketing mix' concept is developed.
Possible means of testing for optimal advertising behaviour at the firm
level are discussed. The usual method of testing for optimal advertising
behaviour was shown to rely on a method which provided no information
about the behaviour of firms, the usual test relies on a 'snapshot'
comparison of values of the firm's discretionary variables and parameters
of the demand function facing the firm. An alternative method of testing
is developed the use of a stock-adjustment approach in conjunction VJith
an loptimality rule' allows the construction of a test which views firms'
behaviour. The test is applied to advertising data for the five major
U. K. motor manufacturers during the period 1958-68.
The 'quality' problem is analysed at the model or variety level.
The problem of defining 'quality' is discussed, and it is suggested that
if 'quality' is suitably defined there will be a useful relationship
between the prices and 'qualities' of a varieties of a given product.
The possible theoretical bases a price-quality relationship (and hence
the 'Hedonic' technique) are analysed and shown to indicate different
forms for the price-quality relationship. Appropriate methods of estimating
the price-quality relationship are suggested. A model of variety demand
allowing for quality differences by incorporating the residuals from the
estimated price-quality relationship in the demand function is proposed.
Price-quality relationships and demand functions are estimated using data
for U.K. passenger cars.
|Item Type:||Thesis or Dissertation (PhD)|
|Subjects:||H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
|Library of Congress Subject Headings (LCSH):||Advertising -- Econometric models, Automobile industry and trade -- Great Britain -- Economic aspects, Quality of products -- Econometric models, Prices -- Econometric models|
|Official Date:||March 1975|
|Institution:||University of Warwick|
|Theses Department:||Department of Economics|
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