TY - JOUR T1 - How Do Taxes on Car Sales Affect Television Advertising Strategies? JF - Journal of Advertising Research JO - J Advert Res SP - 1 LP - 16 DO - 10.2501/JAR-2022-029 VL - 63 IS - 1 AU - Yiting Deng AU - Min Jiang AU - Xiaodong Jiang Y1 - 2023/03/01 UR - http://www.journalofadvertisingresearch.com/content/63/1/1.abstract N2 - 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. ER -