publication . Article . 2009

Is Persuasive Advertising Always Combative in a Distribution Channel?

Chi-Cheng Wu; Ying-Ju Chen; Chih-Jen Wang;
Open Access
  • Published: 01 Jan 2009 Journal: Marketing Science, volume 28, issue 6 11-12, pages 1,157-1,163
Abstract
The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of previously published papers demonstrates that appropriate targeting may partially mitigate the combative nature of persuasive advertising in that either the rival manufacturer or the retailer may benefit. In this paper, we complement their results by demonstrating the possibility that every channel member may benefit from persuasive advertising, i.e., a Pareto improvement along th...
Subjects
free text keywords: persuasive advertising, product substitutability, channel conflict, game theory, Marketing, Business and International Management, Channel conflict, Native advertising, Advertising, Pareto principle, Game theory, Microeconomics, Economics, Communication channel
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publication . Article . 2009

Is Persuasive Advertising Always Combative in a Distribution Channel?

Chi-Cheng Wu; Ying-Ju Chen; Chih-Jen Wang;