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Retailer‐manufacturer price and profit relationships along the advertising life cycle: An empirical examination
Author(s) -
Liebermann Yehoshua,
Ayal Alex
Publication year - 1992
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090130308
Subject(s) - profit (economics) , balance (ability) , empirical examination , channel (broadcasting) , advertising , empirical research , set (abstract data type) , economics , business , microeconomics , industrial organization , marketing , computer science , classical economics , telecommunications , medicine , philosophy , epistemology , programming language , physical medicine and rehabilitation
Competitive intra‐channel forces are an important factor to the success (or failure) of newly introduced brands. The present study offers an extended theoretical framework of the advertising life‐cycle concept, which illuminates the changes in the manufacturer‐retailer balance of power within the marketing channel along the development path of new brands. The theoretical conclusions are then tested against a unique data set. The empirical findings confirm the prediction that dynamic competitive elements will change the intra‐channel pricing balance.