This article goes beyond the principle of relative constancy (PRC) by testing 2 new models of consumer mass media spending using 1953-1991 Belgian data. Unlike traditional PRC models, which have focused exclusively on the long-term relationship between income and mass media spending, these 2 models contain additional regressors (price, population, unemployment, and interest rate) in current (Model 1) and lagged (Model 2) form. Time-series regression analyses were performed to determine which variables significantly predict changes in consumer mass media expenditures. Model 1 regressions revealed that price and population were better predictors of mass media expenditures than income, stressing the importance of developing models of consumer mass media spending that go beyond a simple mass media expenditures-income relation. Model 2 regressions showed that lagged variables played an important role in explaining changes in mass media expenditures, indicating the need for incorporating lags in future mass media spending work.
ASJC Scopus subject areas
- Economics and Econometrics