PT  - JOURNAL ARTICLE
AU  - Yiting Deng
AU  - Min Jiang
AU  - Xiaodong Jiang
TI  - How Do Taxes on Car Sales Affect Television Advertising Strategies?
AID  - 10.2501/JAR-2022-029
DP  - 2023 Mar 01
TA  - Journal of Advertising Research
PG  - 1--16
VI  - 63
IP  - 1
4099  - http://www.journalofadvertisingresearch.com/content/63/1/1.short
4100  - http://www.journalofadvertisingresearch.com/content/63/1/1.full
SO  - J Advert Res2023 Mar 01; 63
AB  - 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.