The effect of competitive advertising interference on sales for packaged goods

Danaher, Peter J., Bonfrer, Andre and Dhar, Sanjay (2008) The effect of competitive advertising interference on sales for packaged goods. Journal of Marketing Research, 45 2: 211-225. doi:10.1509/jmkr.45.2.211


Author Danaher, Peter J.
Bonfrer, Andre
Dhar, Sanjay
Title The effect of competitive advertising interference on sales for packaged goods
Journal name Journal of Marketing Research   Check publisher's open access policy
ISSN 0022-2437
1547-7193
Publication date 2008-01-01
Year available 2008
Sub-type Article (original research)
DOI 10.1509/jmkr.45.2.211
Open Access Status Not yet assessed
Volume 45
Issue 2
Start page 211
End page 225
Total pages 15
Place of publication Chicago, IL United States
Publisher American Marketing Association
Language eng
Formatted abstract
Competitive advertising interference can occur when viewers of advertising for a focal brand are also exposed to advertising messages for competing brands within a short period (e.g., one week for television advertising). Although competitive advertising interference has been shown to reduce advertising recall and recognition and brand evaluation measures, no studies have examined its impact on brand sales. In this research, the authors use a market response model of sales for two grocery categories for a large grocery chain in the Chicago area to study the extent to which competitive advertising interference influences sales. The model enables the authors to capture the “pure” own-brand advertising elasticities that would arise if there were no competitive interference. The results show that competitive interference effects on sales are strong. When one or more competing brands advertise in the same week as the focal brand, the advertising elasticity diminishes for the focal brand. The decrease depends on the number of competing brands advertising in a particular week and their total advertising volume. The authors find that having one more competitor advertise is often more harmful to a focal brand's advertising effectiveness than if the current number of advertising brands increase their total advertising volume.
Keyword Advertising
Aggregate scanner data
Competitive interference
Econometric models
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
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Created: Thu, 24 Sep 2015, 20:39:06 EST by Karen Morgan on behalf of UQ Business School