Open AccessSearch And Experience Goods: Evidence From The 1960‟s And 70‟s
Author(s) -
Arthur S. Leahy
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v21i1.1499
Subject(s) - advertising , newspaper , speciality goods , business , intermediate good , work (physics) , marketing , economics , product market , production (economics) , microeconomics , engineering , mechanical engineering , incentive
This paper examines two aspects of search and experience goods: 1) the differences between the levels of retail and national-brand advertising that would be expected for search goods versus experience goods; and 2) differences in advertising intensity between these two types of goods. The ratio of retail to national-brand advertising was found to be greater for search goods than for experience goods. In addition, the ratio of national-brand advertising in newspapers to sales was found to be greater for experience goods than for search goods. The results overall provide considerable support for Nelson's (1970, 1974) work.