We introduce a model of dynamic price and advertising competition and use the model to investigate a popular segment of the Ready-To-Eat Cereal Market. It is well understood that advertising is a key non-price strategic demand determinant in differentiated product markets. Two popular and compatible models for the role of advertising have emerged. One model specifies advertising as a determinan...

This study explores whether exposure to advertisements that focus on the negative effects of tobacco industry advertising and promotion at the point of sale (anti-POS advertising) influence: (i) attitude toward POS advertising; (ii) perceived impact of POS advertising on youth smoking; and (iii) support for a ban on tobacco promotion at the POS among adult non-smokers in New York. Data are from...

We develop a simple model in which firm-specific advertising has cooperative and predatory effects. Our model is set in a static spatial market where firms are naturally segmented into two distinct submarkets: several large firms located in the core, with small firms operating as a fringe. We test the net effect of the offsetting market size and market share effects of both fringe and core firm...

This study examined the effectiveness of advertising in the context of commercialization congruence between online advertising and Web sites. Specifically, we separated commercialization congruence into commercial and noncommercial sectors, and drew from schema-congruence theory to consider the effects of commercialization congruence that may influence attitudes toward advertising. We employed ...

Different from most sponsored search advertising and click-driven display advertising, on-line brand advertising is less straightforward to assess, and perhaps for that reason has received much less attention in the academic literature and in practice. Brand advertising generally is difficult to assess; however, the online environment provides unique opportunities, because as we describe below ...

This paper examines the role of advertising in the evolution of market structure in the US mutual fund industry. First, I present empirical evidence that mass advertising in this industry creates endogenous sunk costs, resulting in patterns consistent with Sutton’s (1991) predictions. In particular, I contrast evolutionary patterns of advertising spending and market structure between two segmen...

Observatory: New interactive advertising formats on television. A proposal for their analysis and classification This article investigates the area of interactive advertising on television, an emerging phenomenon that has not been extensively explored by the literature and with significant potential for development. The findings provided are based on those obtained as part of the research entit...

This paper develops a model of dynamic advertising competition, and applies it to the problem of optimal advertising scheduling through time. In many industries we observe advertising “pulsing”, whereby firms systematically switch advertising on and off at a high-frequency. Hence, we observe periods of zero and nonzero advertising, as opposed to a steady level of positive advertising. Previous ...