Deng, Yiting;
Jiang, Min;
Jiang, Xiaodong;
(2023)
How Does Vehicle Sales Tax Affect Television Advertising Strategies? Modeling Advertising Intensity Around Emissions-Related Tax Changes.
Journal of Advertising Research
, 62
(4)
pp. 1-16.
10.2501/JAR-2022-029.
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Abstract
Many countries have leveraged sales tax to discourage (or encourage) consumption of socially undesirable (or desirable) products. This article uses several exogenous vehicle sales tax change events to examine the effect of the low-emission vehicle sales tax rate on automobile brands’ television advertising strategies. Empirical results suggest that companies exhibit procyclical advertising behavior in response to the external tax rate change. Moreover, the sales tax rate affects advertisers’ selection of television networks and advertising slots. These results have important economic consequences for the media market, as well as managerial implications for marketers, broadcasters, and policymakers.
| Type: | Article |
|---|---|
| Title: | How Does Vehicle Sales Tax Affect Television Advertising Strategies? Modeling Advertising Intensity Around Emissions-Related Tax Changes |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.2501/JAR-2022-029 |
| Publisher version: | https://doi.org/10.2501/JAR-2022-029 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management UCL > Provost and Vice Provost Offices > UCL BEAMS UCL |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10157780 |
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