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Journal articles on the topic 'Price advertising'

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Published: 10 December 2022

Last updated: 29 January 2023

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1

Song, Hongjuan, and Yushi Jiang. "Dynamic pricing decisions by potential tourists under uncertainty: The effects of tourism advertising." Tourism Economics 25, no. 2 (September 4, 2018): 213–34. http://dx.doi.org/10.1177/1354816618797250.

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The aim of this study is to examine the advertising information learning processes of potential tourists and observe how potential tourists sequentially adjust their perceived reference prices and purchase intentions with different risk preferences and choices with respect to gains (the current price is lower than the consumer’s reference price) or losses (the current price is higher than the reference price). In this study, a Bayesian experiment was conducted to elicit reference prices in the presence of tourism advertising with uncertain information. The findings show that with respect to gains, risk avoiders do not reduce their reference prices as significantly as do risk seekers when exposed to price-informative advertising. Exposure to image advertising changes potential tourists’ risk preferences, and the reference price drops more significantly for risk avoiders than for risk seekers. With respect to losses, informative and image advertising impact the reference price for participants with different risk preferences but not at a statistically significant level.

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2

Milyo, Jeffrey, and Joel Waldfogel. "The Effect of Price Advertising on Prices: Evidence in the Wake of 44 Liquormart." American Economic Review 89, no. 5 (December 1, 1999): 1081–96. http://dx.doi.org/10.1257/aer.89.5.1081.

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The 44 Liquormart decision, eliminating Rhode Island's ban on liquor price advertising, made Rhode Island the subject of a natural experiment for measuring the effect of advertising on prices. Using Massachusetts prices as controls, we find that advertising stores substantially cut only prices of the products that they advertise. Prices of other products, at both advertising and nonadvertising stores, do not change. Advertising stores cut their prices on products advertised by rivals, while nonadvertising stores do not. We find no reductions in price dispersion across stores. Newspaper-advertising stores appear to draw a higher share of customers after they advertise. (JEL L11, L51, L66)

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3

Manstein, Carl H. "WHAT PRICE ADVERTISING?" Plastic and Reconstructive Surgery 104, no. 4 (September 1999): 1208–9. http://dx.doi.org/10.1097/00006534-199909020-00079.

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4

Manstein, Carl H. "WHAT PRICE ADVERTISING?" Plastic & Reconstructive Surgery 104, no. 4 (September 1999): 1208–9. http://dx.doi.org/10.1097/00006534-199909040-00078.

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5

Baker, Paul. "Price/Advertising Modelling." Market Research Society. Journal. 36, no. 1 (January 1994): 1–12. http://dx.doi.org/10.1177/147078539403600105.

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6

Ezimadu, P. E. "Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism." Nigerian Journal of Basic and Applied Sciences 27, no. 2 (May 27, 2020): 127–35. http://dx.doi.org/10.4314/njbas.v27i2.17.

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This work considers the use of subsidy as channel coordination strategy in vertical cooperative advertising in which the manufacturer is the Stackelberg game leader and the retailer is the follower. While the retailer is directly involved in advertising, the manufacturer is indirectly involved through the provision of subsidy to aid the retailer in advertising the product. The work models the demand function using a multiplicative advertising-price-demand function, and obtains the players’ prices, the retail advertising effort, the manufacturer’s subsidy rate and the payoffs. The work observes that with increasing subsidy, the manufacturer’s price margin increases while that of the retailer reduces and eventual becomes zero with total subsidy. However, the manufacturer should not totally subsidise retail advertising since it would be counterproductive for him, while at the same time would lead to very large retail payoff. Thus with appropriate subsidy strategy, the prices and the payoffs, and eventually the entire channel can be coordinated. Keywords: Channel coordination, Vertical cooperative advertising, Stackelberg game, Advertising price-demand function, Subsidy rate.

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7

Liu, Donald J., Harry M. Kaiser, Olan D. Forker, and Timothy D. Mount. "An Economic Analysis of the U.S. Generic Dairy Advertising Program Using an Industry Model." Northeastern Journal of Agricultural and Resource Economics 19, no. 1 (April 1990): 37–48. http://dx.doi.org/10.1017/s0899367x00000167.

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The market impacts of generic dairy advertising are assessed using an industry model which encompasses supply and demand conditions at the retail, wholesale, and farm levels, and government intervention under the dairy price support program. The estimated model is used to simulate price and quantity values for four advertising scenarios: (1) no advertising, (2) historical fluid advertising, (3) historical manufactured advertising, and (4) historical fluid and manufactured advertising. Compared to previous studies, the dairy-industry model provides additional insights into the way generic dairy advertising influences prices and quantities at the retail, wholesale, and farm levels.

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8

Koh, Winston T. H., and H. M. Leung. "Persuasive Advertising and Market Competition." American Economist 36, no. 2 (October 1992): 39–49. http://dx.doi.org/10.1177/056943459203600205.

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This paper studies a duopoly industry where the firms compete for market shares by choosing output prices and advertising outlays. Advertising is purported here to be persuasive rather than informative as it is described in most signaling models. Persuasive advertising tends to cancel each other out and this leads us to question the possibility of firms reducing advertising outlays collusively. Using output cost to stand proxy for output quality, it is found that a robust positive association exists between output cost (quality), output price and advertising activity. We should therefore expect a firm producing higher output quality to advertise more and charge higher price than its lower quality rival even when neither advertising nor price is used as an information dissipating signal. Advertising is also found to be a credible tool to facilitate collusive commitment.

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9

Anderson, Simon P., and Régis Renault. "Advertising Content." American Economic Review 96, no. 1 (February 1, 2006): 93–113. http://dx.doi.org/10.1257/000282806776157632.

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Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the information disclosed to consumers. The firm advertises only product information, price information, or both, and prefers to convey only limited product information if possible. It is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted, nor does it help to restrict the information voluntarily provided.

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10

SCHOONBEEK, LAMBERT, and PETER KOOREMAN. "THE IMPACT OF ADVERTISING IN A DUOPOLY GAME." International Game Theory Review 09, no. 04 (December 2007): 565–81. http://dx.doi.org/10.1142/s0219198907001606.

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We investigate the impact of advertising in a static differentiated duopoly. First, we consider the Nash equilibrium if firms compete with both prices and advertising. Second, we examine the Nash equilibrium if firms only compete in prices and do not advertise. We characterize the circumstances in which the profit, output, and/or price of each firm is greater (or smaller) with advertising than without advertising.

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11

Li, Wei, and Mi Ouyang. "Advertising decisions of new and remanufactured products under direct sales model." Kybernetes 45, no. 9 (October 3, 2016): 1452–71. http://dx.doi.org/10.1108/k-11-2015-0288.

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Purpose There are manufacturer, remanufacturer and advertising agency in the study. The first manufacturer is a traditional manufacturer that produces new product, while the second one operates a reverse channel producing remanufactured products from used cores. Both manufacturers bundle their products with advertisement and outsource advertising services to agents. The agents independently determine the advertising levels and take the advertising prices from manufacturers. The purpose of this paper is to study the advertising decisions of new and remanufactured products under direct-sales model. Design/methodology/approach In this study, it is assumed that the remanufacturer invests extra effort in facilitating the remanufacturing process. First, the authors establish a noncooperative Stackelberg model, where the manufacturers are the leaders and the agents are the followers. And the authors solve the equilibrium strategies backward in this two-stage model. Second, the authors observe the equilibrium characteristics with respect to the advertising price and level decisions for all members in the supply chain. The third, the authors also investigate the competition between two products and the profits of chain members. Based on the theoretical and numerical analysis, the authors derive economic and managerial insights for chain members. Findings The analysis generates the following insights. First, advertising prices and levels decrease with the increase of ultimate cost of advertising and product unit cost. Second, with greater cost-savings, remanufactured products have advantages over new products in advertising price, level and market demand. Third, when advertising elasticity is greater, remanufactured products are superior to new products in demand, advertising price and level, and remanufactured products become more competent than new products. Manufacturers and agents would like to choose the products with high advertising elasticity for remanufacturing or advertising, respectively, to pursue their maximum profits. Originality/value The contribution is constructive as no prior research has abstracted advertising service and regarded agents as chain members in a closed-loop supply chain (CLSC) with remanufacturing. Besides, the results also provide guidelines for choosing marketing strategies for advertising price and level decisions under CLSC condition.

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12

Kinnucan, Henry W., and Evelyn T. Belleza. "Price and Quantity Effects of Canada's Dairy Advertising Programs." Agricultural and Resource Economics Review 24, no. 2 (October 1995): 199–210. http://dx.doi.org/10.1017/s1068280500008844.

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An equilibrium-displacement model is combined with econometric estimates of key model parameters to identify the impacts of Canada's dairy advertising programs on prices and quantity. Results suggest increased advertising of fluid milk enhances the farm value of milk but has minimal effect on government costs of the dairy price-support program. Owing to government intervention in the butter market, increased butter advertising has no effect on the farm value of milk, at least in the short run, but is highly effective at reducing government costs. Advertising is most effective,ceteris paribus, in markets where retail demand and wholesale supply for the specific dairy product are relatively price inelastic.

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13

McGann, Anthony F. "Advertising Media Price Forecasts." Journal of Advertising 14, no. 4 (December 1985): 3. http://dx.doi.org/10.1080/00913367.1985.10672964.

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14

ZAHRÁDKA, JAROSLAV, VERONIKA MACHOVÁ, and JIŘÍ KUČERA. "WHAT IS THE PRICE OF OUTDOOR ADVERTISING: A CASE STUDY OF THE CZECH REPUBLIC?" AD ALTA: 11/01 11, no. 1 (June 30, 2021): 386–91. http://dx.doi.org/10.33543/1101386391.

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The aim of the paper is to analyze the price of outdoor advertising in various regions of the Czech Republic. The base source of data is the website plakatov.cz, from which the prices of outdoor advertisement in individual regions were obtained. The results show that the prices of outdoor advertisement in the individual regions are the same. The main difference is in how many outdoor advertisements are located in individual regions for the lowest and how many for the highest price. An overview was created, which shows what is the price of outdoor advertisement in each region, how many ads are located in each region and subsequently, the data is displayed using a map. The results show that the cheapest outdoor advertisement is located in the Hradec Králové region. The price of the outdoor advertisement in the Hradec Králové Region is CZK 5,204. On the contrary, the most expensive outdoor advertisement is in Prague. The price of outdoor advertising in Prague is CZK 16,567. Most outdoor advertisements are located in Prague. There are 174 outdoor advertisements in Prague. The lowest number of outdoor advertisements is in the Pardubice and Zlín regions. There are 18 outdoor advertisements in both regions. The difference between outdoor advertisements in the Pardubice and Zlín regions is in their price. While in the Zlín Region outdoor advertising costs CZK 6,466, in the Pardubice Region it costs CZK 12,333. The results are beneficial for people who are interested in outdoor advertising. They are mostly beneficial for outdoor advertising producers to know their standing compared to their competition and other regions.

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15

Shin, Jiwoong. "The Role of Selling Costs in Signaling Price Image." Journal of Marketing Research 42, no. 3 (August 2005): 302–12. http://dx.doi.org/10.1509/jmkr.2005.42.3.302.

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To attract potential customers, retailers often advertise low prices with appeals such as “Prices start at $49” or “One week in the Caribbean from $449.” These appeals are deliberately vague in the sense that they give little information about the product to which the prices refer. The author offers an explanation of how such advertisements can construct a credible price image even with this vagueness. When retailers must incur costs in the process of selling a product, advertising low prices to lure potential consumers can backfire. This is because attracting too many consumers who are less likely to purchase the retailer's higher-priced products on the basis of vague promises imposes unwanted selling costs but yields little extra revenue. Therefore, a store with a relatively high selling cost will be dissuaded from attempting to use such a strategy. The author shows analytically that such advertising can be credible only when there is a substantial difference in retailers' costs or when the selling cost is high.

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16

-, Faomasi Ndruru, Trimartha Sihombing -, and Fenny Krisna Marpaung -. "PENGARUH KUALITAS PELAYANAN, PENGIKLANAN DAN HARGA TERHADAP KEPUTUSAN KONSUMEN DALAM MEMILIH GO-FOOD." Jurnal Ekonomi Bisnis Manajemen Prima 2, no. 2 (February 28, 2021): 119–29. http://dx.doi.org/10.34012/jebim.v2i2.1591.

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This study aims to examine and analyze the effect of service quality, advertising and price on consumer decisions in choosing Go-Food. This research was conducted on 24 consumers or Go-Food customers in Medan City. Based on the results of this study, it is known that service quality, advertising and price have a significant positive effect on consumer decisions in choosing Go-Food. Go-Food must be able to maintain or continue to improve the quality of its service, because of the good quality of service, maintain or continue to develop creativity for advertising, and increase price competitiveness, because current prices are able to have a positive influence on consumer decisions to choose Go-Food.

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17

Grewal, Dhruv, and Larry D. Compeau. "Comparative Price Advertising: Informative or Deceptive?" Journal of Public Policy & Marketing 11, no. 1 (March 1992): 52–62. http://dx.doi.org/10.1177/074391569201100106.

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An issue currently generating considerable debate is the increasing use of the comparative price format in advertising. In this paper, reviews of comparative price advertising literature and Federal Trade Commission (FTC) guidelines are integrated to discuss whether comparative price advertisements are informative or deceptive. Recent court cases relevant to comparative price advertising are also discussed. The central focus of the paper is to articulate the state of knowledge regarding comparative price advertising and to assess its potential for being informative or deceptive using an examination of relevant literature and public policy. Recommendations regarding comparative price advertising for public policy makers, managers, and researchers are developed.

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18

Baidya, Mehir, Kamal Ghose, and Bipasha Maity. "An empirical investigation of the effect of advertising in shaping the relationship between sales and price of two entrepreneur brands in India." Asia-Pacific Journal of Business Administration 6, no. 2 (May 27, 2014): 116–26. http://dx.doi.org/10.1108/apjba-02-2013-0010.

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Purpose – The purpose of this paper is to see the role of advertising in the middle of sales-price relationship of two entrepreneur brands in India. Design/methodology/approach – Quarterly data on sales (in units), advertising (net of inflation) and price (net of inflation) have been compiled for two entrepreneur brands over a period 2007-2012. First, elasticity of price is estimated by regressing sales on price. Next, the response of price elasticity to advertising is captured using a semi-logarithmic regression model. Findings – Results reveal that price and sales are inversely related and advertising influences price elasticity negatively. Practical implications – Findings suggest that entrepreneurs/managers should allocate more funds to advertising and at the same time should charge a higher price point in order to increase revenue. Originality/value – By showing a new way of how to measure the effectiveness of advertising beyond traditional ones (inform, persuade or remind) of two entrepreneur brands this research definitely adds some value in the literature of marketing.

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19

Schlimpert, Denis. "“Minimum Advertised Price” policies and the dividing line between price and non-price restraints – An analysis under U.S. antitrust and EU competition law in view of recent UK decisions." Zeitschrift für Wettbewerbsrecht 14, no. 3 (September 8, 2016): 308–28. http://dx.doi.org/10.15375/zwer-2016-0307.

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Abstract“Minimum Advertised Price” (MAP) policies prohibit retailers from advertising prices below a certain amount fixed by their suppliers. Legally, they leave the final decision on resale pricing to the retailers. However, given that, especially in the context of online sales, the communication of discounts through advertising is one of the retailers’ “key incentives” for price competition, MAP policies raise specific issues as to where the dividing line between (unlawful) price and (lawful) non-price restraints in vertical agreements is drawn. In this respect, the following contribution analyses MAP policies both under U.S. antitrust and EU competition law. With regard to the latter, it will particularly focus on two recent UK decisions.

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20

Compeau, Larry D., and Dhruv Grewal. "Comparative Price Advertising: An Integrative Review." Journal of Public Policy & Marketing 17, no. 2 (September 1998): 257–73. http://dx.doi.org/10.1177/074391569801700209.

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After two decades of research, public policymakers, researchers, and managers still have questions regarding the use, abuse, and overall effectiveness of comparative price advertising. Using an integrative review of the literature as a basis, the authors examine the state of substantive knowledge regarding comparative price advertising effects. They use meta-analytical procedures to assess the effects of (1) presence of an advertised reference price, (2) advertised reference price levels, and (3) advertised sale price levels on consumers’ internal reference price, perceived value, price offer believability, purchase likelihood, and search intentions. Evidence indicates that comparative price advertising is a powerful advertising tool, with a strong opportunity for deception, that requires careful management and monitoring.

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Han, Jiaxuan. "Advertising, Investor Attention and Stock Price Crash Risk." BCP Business & Management 19 (May 31, 2022): 181–93. http://dx.doi.org/10.54691/bcpbm.v19i.740.

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The rapid development of the advertising industry fits the background of the rise of new Internet media, and its impact on the stock value of listed The rapid development of the advertising industry fits the background of the rise of new Internet media, and its impact on the stock value of listed companies has also attracted much attention from both theoretical and practical circles. This paper selects investor attention as a mediating variable to investigate the relationship and impact path of advertising investment and stock price crash risk. This paper selects 6115 data of listed companies in Shanghai and Shenzhen A-shares from 2013 to 2019 to construct a curvilinear mediation model, and use the hierarchical regression analysis to find that: there is an inverted U-shaped relationship between advertising input and stock price crash risk; advertising input positively affects investor There is an inverted U-shaped relationship between investor attention and stock price crash risk; advertising input has an indirect impact on stock price crash risk through the cur The contribution of this paper mainly lies in revealing the non-linear mechanism of advertising input's impact on stock price crash risk. The contribution of this paper mainly lies in revealing the non-linear mechanism of advertising input's impact on stock price crash risk by exploring the monitoring and contagion effects of advertising under different input levels, which breaks through the previous research on the linear relationship between advertising, investor attention and stock price. The study also examines the impact of advertising input on stock price crash risk by exploring the monitoring and contagion effects of advertising under different input levels, which breaks through the previous research on the linear relationship between them, and also has important implications for the advertising decisions of managers of listed companies.

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Krishnamurthi, Lakshman, and S. P. Raj. "The Effect of Advertising on Consumer Price Sensitivity." Journal of Marketing Research 22, no. 2 (May 1985): 119–29. http://dx.doi.org/10.1177/002224378502200202.

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The authors investigate how increased advertising affects consumer price sensitivity. First, a conceptual framework integrating the role of advertising content is presented. Next, a methodology for studying the impact of advertising on consumer price sensitivity to brand purchase quantity and consumption is developed. Analyses of diary panel data for an established, frequently purchased brand from an ADTEL advertising field experiment clearly demonstrate that increased advertising lowers price sensitivity. Further, this effect is strong in the high price sensitivity segment for purchase quantity and consumption. In the low price sensitivity segment the effect is marginal. Additional support for these results was obtained by choosing different cutoff points for high sensitivity segmentation.

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23

Liu, Gang, and Fengyue An. "Video Platforms’ Value-Added Service Investments and Pricing Strategies for Advertisers." Sustainability 13, no. 24 (December 11, 2021): 13701. http://dx.doi.org/10.3390/su132413701.

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Using a game-theoretical approach, this paper develops a duopoly model and examines value-added service (VAS) investments and pricing strategies on video platforms with opposite inter-group network externalities between two groups. We consider two scenarios with VAS investment, namely, a single platform investing in VASs for advertisers (S-Model) and both platforms investing in VASs for advertisers (B-Model). We found the following: (i) In the S-Model, the investing platform’s VAS level remains maximum when the marginal investing cost is low; otherwise, it decreases with the cost. Investing and non-investing platforms’ advertising prices are unaffected by the marginal investing cost if the cost is low; otherwise, the prices decrease and increase with the cost, respectively. Furthermore, the investing platform’s advertising price is higher than the non-investing platform’s. (ii) In the B-Model, the two platforms’ VAS levels remain maximum if the marginal investing cost is low; otherwise, they decrease with the cost. The two platforms’ advertising prices are equal and irrelevant to the marginal investing cost. (iii) The investing platform’s VAS level in the S-Model is higher than or the same as that in the B-Model and the investing platform’s advertising price in the S-Model is higher than that in the B-Model. (iv) Compared to the scenario without VAS investment, the investing platform’s advertising price is higher in the S-Model, but the same in the B-Model.

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24

Fang, Rui, and Xiaohu Li. "Advertising a second-price auction." Journal of Mathematical Economics 61 (December 2015): 246–52. http://dx.doi.org/10.1016/j.jmateco.2015.04.003.

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25

Beladi, Hamid, and Subarna K. Samanta. "Price Advertising Decision under Uncertainty." Indian Economic Journal 37, no. 2 (December 1989): 28–39. http://dx.doi.org/10.1177/0019466219890204.

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Kwon, Ik-Whan, Scott R. Safranski, and Joe H. Kim. "The Impact of Advertising on Price and Practice Volume-A Case Study of Dental Markets." Health Services Management Research 6, no. 1 (February 1993): 52–60. http://dx.doi.org/10.1177/095148489300600105.

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Advertising is often considered a catalyst which stimulates competition by communicating the important attributes (information) of goods and services to consumers. Theoretically, advertising makes demand responsive to strategic price differences. This advertisement-induced price elasticity puts competitive pressure on the providers' pricing strategy. It has been assumed that this effect also exists in the health care market. This study investigates the impact that the advertising of services has on the price and demand behaviour in the dental care market. The sampling frame includes 1,326 dentists, 558 (44.3%) of whom have advertised their services. The statistical results seem to dispute the claim that advertising lowers the consumer's price and increases the advertising dentist's market share.

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Wang, Yu, Zongshuan Duan, Sherry L. Emery, Yoonsang Kim, Frank J. Chaloupka, and Jidong Huang. "The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA." International Journal of Environmental Research and Public Health 18, no. 13 (June 24, 2021): 6795. http://dx.doi.org/10.3390/ijerph18136795.

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This study aims to examine how e-cigarette prices and advertising, key determinants of e-cigarette demand, are associated with the demand for smokeless tobacco (SLT) products in the US. Market-level sales and price data by year (2010–2017), quarter, and type of retail store were compiled from Nielsen retail store scanner database. E-cigarette TV advertising ratings data were compiled from Kantar Media. Four-way (market, year, quarter, store type) fixed-effect models were used to estimate the associations between e-cigarette price and TV advertising and sales of SLT products (chewing loose leaf, moist snuff, and snus). Our results showed that a 1% rise in own price was associated with a reduction in sales by 1.8% for chewing loose leaf, 1.6% for moist snuff, and 2.2% for snus, respectively. In addition, a 1% rise in disposable e-cigarette price was associated with 0.3% and 0.6% increased sales for moist snuff and snus, respectively. The association between e-cigarette TV advertising and SLT product sales was not significant. Our results suggest that disposable e-cigarettes and certain SLT products (moist snuff and snus) are potential substitutes. Policies aiming to regulate e-cigarette use and sales need to consider their potential link with the demand for SLT products.

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Ismawan, Farih. "Pengaruh Periklanan dan Harga Jual Terhadap Penjualan Produk Air Minum (Pada PT. Segara Bumi Persada)." Ilmu Ekonomi Manajemen dan Akuntansi 1, no. 1 (March 30, 2020): 53–60. http://dx.doi.org/10.37012/ileka.v1i1.146.

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This study aims to analyze whether advertising and selling prices have an effect on product sales. The hypothesis proposed in this study is that advertising and selling prices have a significant effect on product sales partially or simultaneously.The method used in this research is to do literature and field research. While the analysis model used is multiple regression analysis, multiple correlation coefficient analysis, multiple determination coefficient analysis, t-test statistical analysis and f-test hypothesis testing analysis and the method uses the SPSS-21 assistance program.Results Based on the research, it can be seen that the effect of Advertising and Selling Prices on Product Sales, either partially or simultaneously has a positive and significant effect. Keywords: Advertising, Selling Price, Product Sales

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Karnadi, Karnadi, and Winny Lian Seventeen. "PENGARUH PERIKLANAN DAN HARGA TERHADAP KEPUTUSAN PEMBELIAN DI E-COMMERCE." JAZ:Jurnal Akuntansi Unihaz 4, no. 2 (December 31, 2021): 271. http://dx.doi.org/10.32663/jaz.v4i2.2451.

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This study aims to examine the effect of advertising and price on purchasing decisions in e-commerce. This research was conducted on students of the Faculty of Economics and Business, Unihaz. The number of samples in this study were 71 respondents. The results showed that 65.4% of the advertising and price variables were able to explain the purchasing decision variables in e-commerce. Based on the results of the simultaneous test, advertising and price variables affect purchasing decisions in e-commerce, while based on a partial test, advertising variables affect purchasing decisions in e-commerce. market, but price has no effect on purchasing decisions in e-commerce.

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Capps, Oral, Seong-Cheon Seo, and John P. Nichols. "On the Estimation of Advertising Effects for Branded Products: An Application to Spaghetti Sauces." Journal of Agricultural and Applied Economics 29, no. 2 (December 1997): 291–302. http://dx.doi.org/10.1017/s1074070800007793.

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AbstractUsing IRI Infoscan data pertaining to six types of spaghetti sauces and employing an extension of the demand systems framework developed by Duffy, estimates are obtained of own-price, cross-price, and total expenditure elasticities as well as own- and crossproduct advertising elasticities. We augment the Duffy model through the use of a polynomial inverse lag mechanism to deal with the carryover effects of advertising. We also account for the impacts of features in newspaper fliers, in-store displays, and coupons. Advertising efforts by industry leaders in spaghetti sauce produce positive own-advertising elasticities (ranging from .000058 to .0168) and negative cross-advertising elasticities (ranging from –.000003 to –.0094). Own-price elasticities are in the elastic range, and nearly all compensated cross-price effects are positive, indicative of Hicksian substitutes.

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Ramrattan, Lall B. "Advertising Rivalry in the U. S. Automobile Industry: A Test of Bain's Hypothesis." American Economist 38, no. 2 (October 1994): 40–51. http://dx.doi.org/10.1177/056943459403800205.

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This paper examines Bain's Hypothesis that firms in the automobile industry engage in advertising competition and price collusion. It develops a game theoretic model, basing price on product characteristic and advertising on pure and mixed strategies. Solution concepts such as Cournot, Nash and Prisoner's dilemma are possible. The paper then moves into regression results of advertising outlays in newspaper, general magazines, spot television, and network television, given the firm's cashflow, OPEC influence, and Leader-follower hypotheses. When multicolinearity and serial correlation are adjusted for, the results corroborate Bain's advertising hypothesis with price collusion.

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Kuznetsov, A. "E-Markets and Competition." Voprosy Ekonomiki, no. 2 (February 20, 2004): 72–81. http://dx.doi.org/10.32609/0042-8736-2004-2-72-81.

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Electronic markets are thought to be perfectly efficient in terms of price levels, price dispersion, menu costs and the number of competitive sellers in the market. Indeed, menu costs and prices are usually lower online, but some empirical studies have found that electronic markets are characterised by high price dispersion and high concentration of market power. The author suggests that because of low costs of searching and acquiring information, small number of sellers and low menu costs electronic markets provide better conditions for tacit collusion. The fact that sellers are able to react to competitors' actions faster than buyers may even foster prices to increase. Tighter online competition forces each seller to differentiate from others by advertising his own brand name. In a static equilibrium an increase of the number of buyers may lead to escalation of advertising expenses and force less efficient sellers out of the market.

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Zhou, Erfeng, Tinglong Zhang, Lei Ni, and Chang Fang. "Advertising and Pricing Decisions with Reference Price Effect." Journal of Advanced Computational Intelligence and Intelligent Informatics 22, no. 6 (October 20, 2018): 817–22. http://dx.doi.org/10.20965/jaciii.2018.p0817.

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Social perception influences product and brand evaluations. Consumers are especially susceptible to reference price effects when they make purchase decisions for a certain product. Meanwhile, the advertising and pricing are the determinable factors that have impact on consumers’ reference price which also are fundamental marketing strategies. Therefore, how to dynamically set advertising and pricing to maximize firms’ profits are essential tasks. We investigate a duopoly market in a mature product category where two firms compete through time using advertising and pricing as their dominated marketing tools. The firms make the advertising and pricing decisions to maximize their own profits in the planning period. The main results of this paper include the following. (i) The optimal retail price and advertising effort are positively correlated to the initial reference price and basic market size. (ii) When the two firms’ initial basic market size are different, the retail price difference is positive correlated to the initial basic market size difference, so is the advertising effort difference. This conclusion will result to that the strong firm is getting stronger and stronger, however, the weak firm is getting weaker and weaker, this is the situation which happen in the e-commerce market, that is winners take all. (iii) The value of the initial reference price can also determines the reference price effect on the consumer demand rate, that is, when the initial reference price is relatively low, the reference price will have a negative effect on the consumers’ demand of both firms in the whole planning period; when the initial reference price is relatively high, the reference price will have a positive effect on the consumers’ demand of both firms in the whole planning period. Whereas, a moderate initial reference price may lead to different effects on demand.

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Round, David K. "Price-Informative Advertising and Market Performance." Media Information Australia 37, no. 1 (August 1985): 35–40. http://dx.doi.org/10.1177/1329878x8503700109.

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A long-standing proposition of economic theory is that real competition between firms is based on price competition. Economists have for years used the term ‘non-price competition’ to cover the product differentiation activities of firms, which tends to suggest that product differentiation (and its associated advertising) and price competition are mutually exclusive. Strictly speaking, in terms of economic theory, this is true. But the more modern approach to the empirical analysis of competition is to treat it as a process involving rivalry, whereby firms seek to gain an advantage over rivals as a result of strategic moves involving price, output, product quality, product image, service, research and development, and so on. Thus analysis of the price information provided by firms in their advertising messages may provide some useful insights into the ways in which these firms seek to compete with their rivals.

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Kalra, Ajay, and Ronald C. Goodstein. "The Impact of Advertising Positioning Strategies on Consumer Price Sensitivity." Journal of Marketing Research 35, no. 2 (May 1998): 210–24. http://dx.doi.org/10.1177/002224379803500207.

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The authors examine the link between advertising and price effects and propose that this relationship depends on the specific advertising positioning strategy employed by an advertiser. The authors note that advertising has different goals, depending on the competitive context of the brand, with some advertisers positioned to differentiate between brands and others positioned to narrow the perceived difference between brands. The authors identify specific types of nonprice advertising positioning that increase brand equity and category price sensitivity, those that decrease both, and those that increase brand equity while increasing category price sensitivity. The hypotheses are tested in two experiments across different product categories. The results imply that tests of advertising effectiveness must extend beyond brand attitudinal measures.

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Simmons, Lee C., and Robert M. Schindler. "Cultural Superstitions and the Price Endings Used in Chinese Advertising." Journal of International Marketing 11, no. 2 (June 2003): 101–11. http://dx.doi.org/10.1509/jimk.11.2.101.20161.

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In traditional Chinese superstition, the numerical digit 8 is associated with prosperity and good luck and the digit 4 is associated with death. An examination of the price endings used in a sample of Chinese price advertisements indicates a distinct tendency to favor the digit 8 and to avoid the digit 4. These results constitute evidence of the role of superstition in the Chinese marketplace and provide guidance for setting prices in this increasingly important market.

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Kumar, Pradeep, Kuldeep Chaudhary, Vijay Kumar, and V. B. Singh. "Advertising and Pricing Policies for a Diffusion Model Incorporating Price Sensitive Potential Market in Segment Specific Environment." International Journal of Mathematical, Engineering and Management Sciences 7, no. 4 (July 17, 2022): 547–57. http://dx.doi.org/10.33889/ijmems.2022.7.4.035.

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This paper suggests an optimal control formulation of a diffusion model to determine the optimal advertising and pricing policy for a new product in segmented market involving price dependent market potential where total potential market is a decreasing function of price. We assume that sales rate is proportional to the number of adopters and evolved under the joint effect of a single advertising channel and segment specific advertising process that affect sales rate in unsaturated market. Single channel advertising with a fixed spectrum is available for each segment in whole market while segment specific advertising process can reach each target segment individually. The optimal dynamic price and advertising policies are obtained by applying Pontryagin’s maximum principle. Finally, numerical examples of two cases for a discrete version of the proposed control problem are provided to illustrate the efficacy of the proposed method

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Sviták, Jan, Jan Tichem, and Stefan Haasbeek. "Price effects of search advertising restrictions." International Journal of Industrial Organization 77 (June 2021): 102736. http://dx.doi.org/10.1016/j.ijindorg.2021.102736.

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Zhang, Xubing. "Retailers' Multichannel and Price Advertising Strategies." Marketing Science 28, no. 6 (November 2009): 1080–94. http://dx.doi.org/10.1287/mksc.1090.0499.

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Moraga-González, José Luis, and Emmanuel Petrakis. "Coupon Advertising under Imperfect Price Information." Journal of Economics & Management Strategy 8, no. 4 (December 1, 1999): 523–44. http://dx.doi.org/10.1162/105864099567749.

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Xu, Linli, Kenneth C. Wilbur, S. Siddarth, and Jorge M. Silva-Risso. "Price Advertising by Manufacturers and Dealers." Management Science 60, no. 11 (November 2014): 2816–34. http://dx.doi.org/10.1287/mnsc.2014.1969.

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Fruchter, G. E. "Signaling Quality: Dynamic Price-Advertising Model." Journal of Optimization Theory and Applications 143, no. 3 (May 23, 2009): 479–96. http://dx.doi.org/10.1007/s10957-009-9575-7.

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Bester, Helmut, and Emmanuel Petrakis. "Price competition and advertising in oligopoly." European Economic Review 39, no. 6 (June 1995): 1075–88. http://dx.doi.org/10.1016/0014-2921(94)00099-l.

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Bester, Helmut. "Random Advertising and Monopolistic Price Dispersion." Journal of Economics Management Strategy 3, no. 3 (September 1994): 545–59. http://dx.doi.org/10.1111/j.1430-9134.1994.00545.x.

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Moraga-Gonzalez, Jose Luis, and Emmanuel Petrakis. "Coupon Advertising Under Imperfect Price Information*." Journal of Economics Management Strategy 8, no. 4 (December 1999): 523–44. http://dx.doi.org/10.1111/j.1430-9134.1999.00523.x.

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Esteves, Rosa-Branca, and Joana Resende. "Competitive Targeted Advertising with Price Discrimination." Marketing Science 35, no. 4 (July 2016): 576–87. http://dx.doi.org/10.1287/mksc.2015.0967.

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Esteban, Lola, and José M. Hernández. "Endogenous direct advertising and price competition." Journal of Economics 112, no. 3 (July 11, 2013): 225–51. http://dx.doi.org/10.1007/s00712-013-0357-1.

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Jena, Sarat Kumar, and Deepti Jog. "Price competition in a tourism supply chain." Tourism Economics 23, no. 6 (November 2, 2016): 1235–54. http://dx.doi.org/10.1177/1354816616674611.

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In recent trend, advertising is seen to significantly impact channel members’ demand, pricing and profit in tourism supply chain (TSC). Most TSC studies, to date, assumed the market demand to be influenced only by tour price under price competitive environment, not considering the effect of advertising investment. In order to address this problem, two models are established considering decentralized channels: tour operator Stackelberg (TS) and local operator Stackelberg (LS). We analytically show TS model to provide better results than LS model and advertising to strongly influence the channel members’ pricing strategies and profit. Then we generalized the solution considering multiple operators under price competition. We studied two coordination mechanisms, cooperative advertising and two-part tariff, and found the two-part tariff provides better mechanism for improving the profit in LS model compared to cooperative advertisement.

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Yan, Ke, Shuai Liu, Min Zuo, Jiamin Zheng, and Yadong Xu. "Dual-Channel Supply Chain Pricing Decisions under Discounted Advertising Value." Systems 10, no. 3 (June 7, 2022): 76. http://dx.doi.org/10.3390/systems10030076.

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Retailers advertise on different sales channels. When consumers buy online, the effectiveness of advertising is discounted because they cannot feel the product. Observing this phenomenon, this paper studies the advertising strategy of a dual-channel retailer. In this paper, we build stylized game models for the retailer’s price and advertising levels on online and offline channels, respectively. Our contribution is to provide prescriptions for how dual-channel retailers make price and advertise decisions and determine which channel is more profitable for retailers. We find that advertising discounts are not always harming the retailer’s profits. The level of advertising discounts causes retailers to increase the selling price when consumers engage in online shopping. Also, we derive that retailers can choose the sales channels based on the level of consumers’ channel preference of consumers. Interestingly, an increase in the level of advertising discounts will contribute to the growth of the retailer’s profit. Finally, by numerical analysis, we demonstrate the robustness of the results.

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Fu, Chunyan, Susu Cheng, and Yongxi Yi. "Dynamic Control of Product Innovation, Advertising Effort, and Strategic Transfer-Pricing in a Marketing-Operations Interface." Mathematical Problems in Engineering 2019 (February 21, 2019): 1–14. http://dx.doi.org/10.1155/2019/8418260.

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We develop a dynamic control model of a monopolist composed of two profit centers, e.g., an operations department in charge of the product innovation and a marketing department controlling advertising effort as well as the retail price. Meanwhile, knowledge accumulating in product innovation and advertising effort which lead to reducing the corresponding investment cost is considered. The customer inverse demand function depends jointly on the quality level as well as the product goodwill which can be improved by product innovation and advertising efforts. Our results show that the learning rates of product innovation and advertising effort affect the product innovation and advertising effort investments level. In addition, compared with the administered transfer-pricing, the negotiation between the two departments results in a lower transfer price as well as a higher retail price. In the meantime, the advertising effort is lower while the quality improvement effort is higher. What is more, higher profits to both departments and the firm can be brought about by the negotiation means.

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