This paper analyzes the effect of TV advertising and in-store displays on the sales of chocolates. I examine which method is more effective in gaining customers and in increasing total sales. Also, I look at the evidence to see whether the lack of advertising by a firm will hurt the industry as a whole. In this essay, I use a nested logit model on scanner data obtained by the Zwick Center for Food and Resource Policy at the University of Connecticuts Department of Agricultural and Resource

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... mics to examine the effect of TV advertising on chocolate sales. The results show that in-store displays and advertising both help increase the demand for chocolate. . I am deeply indebted to my advisor Prof. Richard N. Langlois and to my associate advisors Prof. Ronald Cotterill and Prof. Rui Huang for their guidance and helpful advice. I would also like to thank Xun Li, Adam Rabinowitz, Charles Rhodes, and Joshua Berning for helping me analyze the data and estimate the model. Lastly, I also would like to thank Boris Bravo-Ureta and Chen Zhu for their comments. Any errors are my own.