Advertising Effectiveness for Financial Services Firms: Evidence from the Life Insurance Industry

Advertising can increase consumer demand for products and services. However, little evidence exists regarding the effectiveness of advertising for financial services firms. Using detailed data from the U.S. life insurance industry, we empirically test advertising's effectiveness in the financia...

Full description

Saved in:
Bibliographic Details
Published in:Journal of insurance issues 2016-10, Vol.39 (2), p.137-168
Main Authors: Fier, Stephen G., Pooser, David M.
Format: Article
Language:English
Subjects:
Advertising
Advertising expenditures
Advertising research
Advertising signs
Beverages
Cigarette industry
Consumer advertising
Consumer behavior
Consumers
Economic models
Financial services
Financial services industries
Influence
Insurance industry
Insurance policies
Insurance premiums
Insurance providers
Investigations
Life insurance
Profits
Purchasing
Reporting requirements
Studies
Yogurt
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Advertising can increase consumer demand for products and services. However, little evidence exists regarding the effectiveness of advertising for financial services firms. Using detailed data from the U.S. life insurance industry, we empirically test advertising's effectiveness in the financial services sector. We first find that advertising intensity is positively related to increased life insurance sales. The results suggest that the degree of advertising intensity is related to growth in both the number of policies issued and the dollar amount of life insurance issued. Our results also indicate that while advertising can influence demand, the influence is not dependent on the type of consumer targeted by the firm.
ISSN:1531-6076
2332-4244