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A Model of Advertising Competition

A Model of Advertising Competition Using a dynamic model of advertising rivalry between competitors in a duopoly, the author obtains analytical results for the case of pure market share rivalry in a mature market. A more general model, allowing for market expansion as well as market share rivalry, is analyzed numerically. An empirical illustration indicates that the advertising behavior of the two leading national brewers, Anheuser-Busch and Miller, is consistent with theoretical conclusions that competitors dynamically increase advertising expenditures to take advantage of a growing market for both. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Marketing Research SAGE

A Model of Advertising Competition

Journal of Marketing Research , Volume 22 (3): 8 – Aug 1, 1985

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References (21)

Publisher
SAGE
Copyright
© 1985 American Marketing Association
ISSN
0022-2437
eISSN
1547-7193
DOI
10.1177/002224378502200305
Publisher site
See Article on Publisher Site

Abstract

Using a dynamic model of advertising rivalry between competitors in a duopoly, the author obtains analytical results for the case of pure market share rivalry in a mature market. A more general model, allowing for market expansion as well as market share rivalry, is analyzed numerically. An empirical illustration indicates that the advertising behavior of the two leading national brewers, Anheuser-Busch and Miller, is consistent with theoretical conclusions that competitors dynamically increase advertising expenditures to take advantage of a growing market for both.

Journal

Journal of Marketing ResearchSAGE

Published: Aug 1, 1985

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