publication . Article . Part of book or chapter of book . 2018

Competitive Reactions to Advertising and Promotion Attacks

Jan-Benedict E. M. Steenkamp; Vincent R. Nijs; Dominique M. Hanssens; Marnik G. Dekimpe;
Restricted English
  • Published: 03 Apr 2018
  • Country: Netherlands
Abstract
How do competitors react to each other's price-promotion and advertising attacks? What are the reasons for the observed reaction behavior? We answer these questions by performing a large-scale empirical study on the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories over a four-year time span. Our results clearly show that the most predominant form of competitive response is passive in nature. When a reaction does occur, it is usually retaliatory in the same instrument, i.e., promotion attacks are countered with promotions, and advertising attacks are countered with advertising. There are very few long-ru...
Subjects
free text keywords: empirical generalizations, advertising and price-promotion effects, competitive strategy, time-series analysis, Marketing, Business and International Management, Advertising campaign, Advertising account executive, Reaction behavior, Advertising, Product (category theory), Empirical research, Economics, Competitor analysis, Competitive advantage, Consumer response
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publication . Article . Part of book or chapter of book . 2018

Competitive Reactions to Advertising and Promotion Attacks

Jan-Benedict E. M. Steenkamp; Vincent R. Nijs; Dominique M. Hanssens; Marnik G. Dekimpe;