The effectiveness of advertisement on a product and a person
Advertising is the highest visibility and the largest scale campaign among all marketing activities. Therefore, many researchers and company managers are interested in studying about the performance of advertising. Many researches give evidence to show that there is a relationship between advertising and the performance of company, advertising work as a communication channels for enterprises to communicate between investors and consumers, which make a positive impact on the wealth of the company shareholders (Conchar, Crask, and Zinkhan, 2005). Advertising is one of the ways to promote products and to enhance the image of the company. Information and messages can be conveyed to the public by the advertising, which can further enhance brand awareness, brand, brand recognition and brand or product reputation. Also, company’s background, information and future plan can be disclosed properly and accurately, which can be regarded as a positive good indicator of company's future performance for the investors (Kim and Morris, 2003). So, the product promoted by the advertisement can get a higher visibility when compared with the competitors, which resulted in getting a higher market price and better performance. Some researches indicated that the expenditure of advertising can be viewed as a company investment since advertising can make benefits for the company by increasing the sales. Causal relationship between advertising and sales was pointed out in many research studies. Under ideal conditions, if we spend a dollar in advertising, at least three dollars of sales we can get under the effect of advertisement (Broadbent, 1997). This absolute advantage can help the company to achieve differentiation strategy in order to create company value as the reputation and recognition of brand and its products are increased. Advertising help the company to create brand equity during the launching and promotion of new products so that it is difficult for competitors to imitate (Ho, Keh and Ong, 2005).
Besides, advertising pay an important role in the market as it send out a signal about the quality of the products so that consumers can assess and measure their attitude towards the product, and they can also compare or balance the marked price, market price and your estimated price of the product (Nelson 1974; Kihlstrom and Riordan, 1984；Milgrom and Roberts, 1986). When facing the product, consumers will imagine the product. Under the attention-getting effects of advertising, consumers will connect the product image describe by the advertisement to their experienced product image, and then exert influence to the consumers (Twedt, 1952; Boyd and Schonfeld, 1977).
The impact of advertising on consumer behavior
The effectiveness of advertising can be separated into long-term and short-term effect. The long-term effect of advertising is so-called carry-over effect or durable effect. Aaker and Carmen (1982)...