Does Generic Advertising Help or Hurt Brand Advertising?
AbstractThe purpose of this study is to investigate whether the generic advertising helps or hurts the brand advertising within the differentiated product environments. We develop an analytical model that includes both generic and brand advertising expenditures considering vertical product differentiation. Then the analysis is devoted to examine how marginal effects of expenditure affect each other under product differentiation. To help examine the relationship, we also include a new variable, the degree of product differentiation. Analytical results show that when the generic advertising increases the product differentiation, the high quality brand tends to take benefits while the low quality brand loses. When generic advertising includes messages that do not differentiate quality attributes, the high quality brand loses while the low quality brand takes benefits.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49557.
Date of creation: 2009
Date of revision:
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check off; generic advertising; brand advertising; vertical product differentiation; Marketing;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-16 (All new papers)
- NEP-COM-2009-05-16 (Industrial Competition)
- NEP-MKT-2009-05-16 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Isariyawongse Kosin & Kudo Yasushi & Tremblay Victor J., 2007. "Generic and Brand Advertising in Markets with Product Differentiation," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-17, September.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
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