The authors are listed in reverse alphabetical order. They gratefully acknowledge the support of IRI/Europanel, who provided the data on which this study is based. They thank the participants at the MSI Conference on Competitive Reaction for constructive comments on an earlier draft of this work. Financial support by the Flemish Science Foundation (F.W.O) under grant G.0145.97 and the Research Council of the Catholic University of Leuven under grant OT.96.4 is greatly How do competitors react to each other’s price-promotion and advertising actions? How do these reactions influence the net sales impact we observe? We answer these questions by performing a large-scale empirical study of the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories, over a four-year time span. Competitive reaction can be passive, accommodating or retaliatory. We first develop a series of expectations on the type and intensity of reaction behavior, and on the moderators of this behavior. These expectations are assessed in two ways. First, vector-autoregressive models quantify the short-run and long-run effect of a promotion or advertising action on competitive sales and on competitive reactions. By cataloging the numerical results, we are able to formulate

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After summarising the relevant theoretical foundations, this exploratory paper describes the current state of marketing metrics in the UK. “Marketing ” is broadly defined as what the whole company does to achieve customer preference and, thereby, its own goals. We show that both financial and non-financial measures are used though the former continue to predominate. Brand equity bridges short- with longterm effects. We develop a generalized framework of marketing around six measurement categories: financial, competitive, consumer behavior, consumer intermediate, i.e. thoughts and feelings, direct trade customer and innovativeness. In addition we established three criteria for the assessment of a metrics system: comparison with internal expectations, e.g. plan, and the external market together with an adjustment for any change in the marketing asset brand equity. Using this basis, the research gathered an empirical description of current metrics practice in the UK through three stages. The first was qualitative. The second stage explored the use and perceived importance of metrics by category, and associations with orientation and

In the automobile sector, it is a usual practice that independent carmakers engage in the development and production of a common car model, the so-called twin cars. From the point of view of the marketing literature, we claim that carmakers should not charge different brand premia on separate models of a twin car. We use hedonic regressions and panel data estimators to valuate brand premia, by controlling for quality diversity. We find that there are no significant differences between brand premia of separate models of a twin car, even if brand premia may differ across different carmakers. We would like to thank Miguel Aguilar from providing us the data. We have profited from very useful comments and suggestions by Andrea Ichino and Olmo Silva. The usual disclaimer applies. Omar Licandro acknowledges the financial support of the Spanish Ministry