The Formation of Market-Level Expectations and Its Covariates

Eugene W. Anderson, Linda Court Salisbury

Research output: Contribution to journalArticlepeer-review

82 Scopus citations


A formal model of market-level expectations is developed and used to Identify testable hypotheses. The empirical findings Indicate that market-level expectations are more adaptive in nature than previously thought. The study also provides the first systematic Investigation of cross-industry variation In the formation of marketlevel expectations. Several factors, including advertising, word-of-mouth, market growth, and purchase frequency, are found to have a significant moderating influence on the adaptation rate. Finally, we find that market-level expectations adjust faster when perceived quality declines, suggesting that negativity biases manifest at a macrolevel - a phenomenon that has not been previously observed.

Original languageEnglish (US)
Pages (from-to)115-124
Number of pages10
JournalJournal of Consumer Research
Issue number1
StatePublished - Jun 2003
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Anthropology
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Marketing


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