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THE EFFECT OF ADVERTISING ON THE PROPENSITY TO CONSUME *
Author(s) -
Simon JulianL.
Publication year - 1967
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1967.tb00886.x
Subject(s) - promotion (chess) , consumption (sociology) , affect (linguistics) , argument (complex analysis) , marginal propensity to consume , balance (ability) , economics , empirical evidence , advertising , business , monetary economics , political science , law , psychology , epistemology , neuroscience , sociology , politics , social science , biochemistry , chemistry , philosophy , communication , market liquidity
SUMMARY That advertising and other sales promotion increases consumption and the propensity to consumes is commonly assumed by both economists and trade apologists. But because promotion demonstrably increases demand for particular products and brands is not sufficient evidence that it increases aggregate demand. Rather, promotion might only redistribute purchases among products and brands. This paper considers the plausibility of the possibilities that promotion does and does not affect the propensity to consume, adducing both argument and empirical evidence. There is a slight amount of shaky evidence to suggest that, on balance, promotion does affect consumption levels.