Competitive Reactions and the Cross-Sales Effects of Advertising and Promotion

Competitive Reactions and the Cross-Sales Effects of Advertising and Promotion (2001)

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by Jan-benedict E. M. Steenkamp , Vincent R. Nijs , Dominique M. Hanssens , Marnik G. Dekimpe

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Datum	Value	Source
TITLE	Competitive Reactions and the Cross-Sales Effects of Advertising and Promotion	SVM HeaderParse 0.2
AUTHOR NAME	Jan-benedict E. M. Steenkamp	SVM HeaderParse 0.2
AUTHOR AFFIL	Northwestern University	SVM HeaderParse 0.2
AUTHOR NAME	Vincent R. Nijs	SVM HeaderParse 0.2
AUTHOR AFFIL	Northwestern University	SVM HeaderParse 0.2
AUTHOR NAME	Dominique M. Hanssens	SVM HeaderParse 0.2
AUTHOR AFFIL	University of California, Los Angeles	SVM HeaderParse 0.2
AUTHOR NAME	Marnik G. Dekimpe	SVM HeaderParse 0.2
AUTHOR AFFIL	Catholic University of Leuven	SVM HeaderParse 0.2
ABSTRACT	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	SVM HeaderParse 0.2
YEAR	2001	SVM HeaderParse 0.2
CITATIONS	64 found	ParsCit 1.0