Post #1: Foundational Research on Advertising, Collection of Resources, and Changing Direction of Project/Project Title

Hello everyone!

Due to unforeseen circumstances, I was only able to begin my research this month. I have currently completed about 20 hours of research, but I am sticking to my plan and I will hopefully have my literature review completed around the first week of August.

I began my research by reading an existing chapter of an advertising guidebook recommended to me by my advisor, Professor Katie Lopresti. I was able to take notes on basic principles of advertisement (i.e. the three main perspectives on advertising, direct and indirect effects of advertising, advertising and price, etc.), which helped me formulate an idea of what the purpose of advertising is in general for┬áthe economy and some of the effects advertising might have, and it helped me get an idea of what to focus on in my research. The handbook itself featured a collection of sources that I will soon begin investigating, in order to serve as primary sources for my project. One limitation of the handbook was that many of the conclusions regarding advertising were inconclusive (as some studies’ results contradicted others), but I believe that this valuable resource has helped me immensely in terms of learning about past studies on advertising. The handbook included a lot of more-advanced economic models than I have studied, which made some sections difficult to understand. But, as my project consists of a literature review rather than a full application/study of the economics behind advertising, I have decided to not dwell on these topics and instead gather information relevant to advertising and the luxury goods market.

 

After an initial run-through of reading and taking notes on advertising fundamentals from the handbook, I began gathering academic papers regarding luxury brands (specifically clothing) and brand loyalty, as well as tangential issues that might be relevant to my research. I have currently found 22 articles I will be reading through my initial database search; I may not use all of them, but I am currently in the process of taking notes relevant to my topic. I have found that working through these studies has been far more interesting/enjoyable to me than reading about the economic foundations of advertising, and I’m excited to see where my reading takes me, as I am already beginning to note other studies these papers are referencing. Hopefully, I will soon have a good understanding of how the luxury goods market works, as well as the roles customers play and what qualities might affect pricing.

 

As a result of my research so far, I have determined something important: it is hard to draw any conclusions regarding advertising, as advertising/pricing is a complex economic concept that can change between situations, and there isn’t enough literature to prove/disprove that brand loyalty has any effect on demand elasticity/sales of luxury goods. Instead of studying “The Effect of Brand Loyalty through Advertising of Luxury Goods on Demand Elasticity and Sales of Products Sold” I will now be researching “The Fundamentals of Advertising, Brand Loyalty, and the Luxury Clothes Market,” a literature review that will summarize these three topics, but does not imply that brand loyalty has an effect on the sales/demand elasticity of luxury goods, as I do not believe there is enough literature/evidence to make a conclusion on that for my project.

 

Thank you for reading, and if you have any questions/comments please leave them below!

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