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Is Persuasive Advertising Always Combative in a Distribution Channel?


  • Chi-Cheng Wu

    () (Department of Business Management, National Sun Yat-Sen University, Kaohsiung 80424, Taiwan, Republic of China)

  • Ying-Ju Chen

    () (Industrial Engineering and Operations Research Department, University of California, Berkeley, Berkeley, California 94720)

  • Chih-Jen Wang

    () (Department of Business Management, Cheng Shiu University, Kaohsiung County 83347, Taiwan, Republic of China)


The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of previously published papers demonstrates that appropriate targeting may partially mitigate the combative nature of persuasive advertising in that either the rival manufacturer or the retailer may benefit. In this paper, we complement their results by demonstrating the possibility that every channel member may benefit from persuasive advertising, i.e., a Pareto improvement along the distribution channel, thereby leading to the conclusion that persuasive advertising need not result in channel conflict.

Suggested Citation

  • Chi-Cheng Wu & Ying-Ju Chen & Chih-Jen Wang, 2009. "Is Persuasive Advertising Always Combative in a Distribution Channel?," Marketing Science, INFORMS, vol. 28(6), pages 1157-1163, 11-12.
  • Handle: RePEc:inm:ormksc:v:28:y:2009:i:6:p:1157-1163

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    References listed on IDEAS

    1. Kelton, Christina M L & Kelton, W David, 1982. "Advertising and Intraindustry Brand Shift in the U.S. Brewing Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 30(3), pages 293-303, March.
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    Cited by:

    1. Jianqiang Zhang & Weijun Zhong & Shue Mei, 2012. "Competitive effects of informative advertising in distribution channels," Marketing Letters, Springer, vol. 23(3), pages 561-584, September.
    2. Grillo, Edoardo, 2016. "The hidden cost of raising voters’ expectations: Reference dependence and politicians’ credibility," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 126-143.


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