The Sales and Competitive Effects of Styling and Advertising Practices in the U.S. Auto Industry
AbstractThis paper utilizes a detailed data set on most U.S. car models over a twenty-two-year period to determine the impact of advertising and product styling. It finds that, while advertising and style change each increases a model's sales, advertising is short-lived but styling has a much longer impact. Rivals' styling reduces own-model sales to the point that the overall market effect is self-canceling. Rivals' advertising, by contrast, does not greatly affect own sales, so that marketwide advertising does increase total sales. These results add several twists to previous analyses of this industry. Copyright 1993 by MIT Press.
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Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 75 (1993)
Issue (Month): 4 (November)
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- Korenok, Oleg & Hoffer, George E. & Millner, Edward L., 2010.
"Non-price determinants of automotive demand: Restyling matters most,"
Journal of Business Research,
Elsevier, vol. 63(12), pages 1282-1289, December.
- Oleg Korenok & George E. Hoffer & Edward L. Millner, 2009. "Non-Price Determinants of Automotive Demand: Restyling Matters Most," Working Papers 0903, VCU School of Business, Department of Economics.
- Ana Aizcorbe & Martha Starr & James T. Hickman, 2003. "The replacement demand for motor vehicles: evidence from the Survey of Consumer Finances," Finance and Economics Discussion Series 2003-44, Board of Governors of the Federal Reserve System (U.S.).
- Matthias Greuner & David Kamerschen & Peter Klein, 2000. "The Competitive Effects of Advertising in the US Automobile Industry, 1970-94," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(3), pages 245-261.
- Peter Scott & James Walker, 2008. "Advertising, promotion, and the competitive advantage of interwar UK department stores," Economics & Management Discussion Papers em-dp2008-56, Henley Business School, Reading University.
- repec:rdg:emxxdp:em-dp2009-05 is not listed on IDEAS
- Nichols, Mark W. & Fournier, Gary M., 1999. "Recovering from a bad reputation: changing beliefs about the quality of U.S. autos," International Journal of Industrial Organization, Elsevier, vol. 17(3), pages 299-318, April.
- Requena-Silvente, Francisco & Walker, James, 2007. "Investigating sales and advertising rivalry in the UK multipurpose vehicle market (1995-2002)," Journal of Economics and Business, Elsevier, vol. 59(2), pages 163-180.
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