This paper analyzes advertising incentives and strategies in specialized markets, where consumers’ decisions are dictated by experts. By analyzing the market stealing and market expanding aspects of advertising, this study shows that in a sub-game perfect equilibrium only some (and not all) firms may choose to advertise to consumers. From the welfare perspective, consumer advertising is sociall...

In this paper, the demand for beer, wine, spirits and soft drinks in Ontario is modeled in two parts: an equation is speci®ed to endogenize group expenditures and a demand system is set up to allocate budgeted group expenditures across types of beverages. Advertising is allowed to in ̄uence both the level of group expenditures and its allocation. Three popular advertising speci®cations are compa...

OBJECTIVE To assess the impact of promotions on cigarette sales in Taiwan after the cigarette market opened to foreign companies, and to assess whether young smokers were targeted by these companies. METHODS Trends in cigarette sales, advertising expenditure, brand preference, and cigarette consumption were examined for the period following the 1987 opening of the cigarette market. Tobacco in...

A firm has to make consumers aware of a new product introduction. It also has to convince them that the product is of high quality. In this paper, we consider the interplay between directly and indirectly informative advertising in a monopoly model with repeat purchase. When consumers observe the advertising expenditure, the firm may excessively advertise high quality. However, when consumers o...

We study a supply chain in which a consumer goods manufacturer sells its product through a retailer. The retailer undertakes promotional expenditures, such as advertising, to increase sales and to compete against other retailer(s). The manufacturer supports the retailer’s promotional expenditure through a cooperative advertising program by reimbursing a portion (called the subsidy rate) of the ...

The aim of this study was to describe advertising expenditure for sugary drinks compared with alternative cold non‐alcoholic beverages (artificially sweetened beverages, plain water, milk) between 2016 and 2018 across Australian media channels. Monthly estimates were obtained from Nielsen Media aggregated by product type media. Total drink ($129.5M) significantly exceeded on artificially ($23.2...

We investigate advertising level, pricing and production decision problems in a supply chain when demand and cost disruptions occur simultaneously. The channel consists of one manufacturer and one retailer where demand depends on retail price and advertisement expenditure. We examine the case in both cooperative game and non-cooperative Stackelberg game.

The relationship between patenting and output series real GDP is examined using both nineteenth century New Zealand patent applications, applications weighted by fees compulsory advertising expenditure. Weighting patents desirable because of the rapid growth in after initial were reduced early 1880s. expenditure data usually provides a better measure intellectual property investment, with consi...

This paper investigates advertising level, pricing and production quantity decision problems in a supply chain when demand and production cost disruptions occur simultaneously. The supply chain consists of one manufacturer and one retailer where customer demand depends on the retail price and advertisement expenditure. The authors examine this problem in two game-theoretic models: a cooperative...

ing expenditure on the reasonable assumption that advertising is subject to diminishing returns. Accordingly, an outright ban is likely to have far more effect than marginal changes. The report also considered survey evidence that nearly half of all smokers agree that "smoking cannot be really dangerous or the government would ban cigarette advertising. "8 The conclusion from the evidence amass...