Table 4 Effects of Brand-, Category-, and Country-Level Factors on the Relationship between Aggregate Advertising Expenditures and Perceived Quality

Covariate	M1.0: Month FEs and Brand RE	M1.1: M1.0 + Main Effect Variables	M1.2: M1.1 + Interactions	M1.3: M1.2 + Control Function
AD	.089^†	.089^†	.092^†	.283***
Interactions
AD × VOLATIL			−.005**	−.005**
AD × OWN			.064^†	.064^†
AD × EQUITY			−.113**	−.112**
AD × INVOLV			−.106**	−.104**
AD × FREQ			.038	.037
AD × CATAGE			.035	.034
AD × NPL			.085***	.084***
AD × GDPPC			1.492**	1.486**
Main Effects/Controls
VOLATIL		−.001	−.005	−.005
OWN		.4.324^†	.4.330^†	.4.245^†
EQUITY		−.231	−.045	−.034
INVOLV		−.734	−.751	−.963
FREQ		.3.385^†	.3.412^†	.3.364^†
CATAGE		−.858	−.847	−.693
NPL		.4.708^†	.4.717^†	.4.785^†
GDPPC		.−1.827	.−1.884	−.347
Month FEs	Included	Included	Included	Included
Brand RE	Included	Included	Included	Included
Control Function				Included
Intercept	15.489^†	15.489^†	15.440^†	15.487^†
Number of observations	43,081	43,081	43,081	43,081
Number of brands	898	898	898	898

Note: FE = fixed effect; RE = random effect; AD = advertising expenditures; VOLATIL = advertising volatility; OWN = ownership; EQUITY = brand equity; INVOLV = product involvement; FREQ = purchase frequency; CATAGE = product category age; NPL = new product launch frequency; GDPPC = macroeconomic condition (gross domestic product per capita).
* p < .10;
↵** p < .05;
↵*** p < .01;
↵† p < .001 (significance assessed with brand cluster-adjusted standard errors).