June 24, 2015
Marketing professors' research to be published in upcoming issue of Marketing Letters
Kansas State University assistant professors of marketing Reo Song and Sungha Jang, along with Santa Clara University associate professor of management and information systems George Cai, recently had a paper accepted for publication in an upcoming issue of Marketing Letters.
The research, "Does Advertising Indicate Product Quality? Evidence from Pre- and Post-launch Advertising in the Movie Industry," provides an empirical investigation of whether advertising is a reliable indicator of quality before and after a product launch.
The researchers analyzed data from the movie industry to make their conclusions, studying the pre- and post-launch advertising for 1,078 movies released between 2003-2011. Their research shows that post-launch advertising is a reliable indicator of quality that increases revenues, while prelaunch advertising is not an indicator of quality, even if it does lead to higher revenues.