318
Views
1
CrossRef citations to date
0
Altmetric
Original Articles

The Threshold Effect of Advertising on the Intensity of Price Promotions: Using a Rational Expectations Model

Pages 98-110 | Published online: 08 Jun 2011

REFERENCES

  • Admati , A. R. 1985 . A noisy rational expectation equilibrium for multi-assets securities markets . Econometrica , 53 : 629 – 657 .
  • Albion , M. S. 1983 . Advertising's hidden effects: Manufacturers' advertising and retail pricing. Boston , MA : Auburn House. .
  • Bagwell , K. and Riordan , M. H. 1991 . High and declining prices signal product quality . American Economic Review , 81 : 224 – 239 .
  • Bain , J. S. 1956 . Barriers to new competition. Cambridge , MA : Harvard University Press. .
  • Blattberg , R. C. and Neslin , S. C. 1989 . Sales promotion: The long and short of it . Marketing Letters , 1 : 81 – 97 .
  • Boulding , W. , Lee , E. and Staelin , R. 1994 . Mastering the mix: Do advertising, promotion, and sales force activities lead to differentiation? . Journal of Marketing Research , 31 : 159 – 172 .
  • Chen , G. R. 2010 . The risk reduction role of advertising in relation to price rigidity . European Journal of Marketing , 44 : 1839 – 1855 .
  • Comanor , W. S. and Wilson , T. A. 1974 . Advertising and market power. Cambridge , MA : Harvard University Press. .
  • Dobson , P. W. 2005 . Exploiting buyer power: Lessons from the British grocery trade . Antitrust Law Journal , 72 : 529 – 562 .
  • Dodds , W. B. , Monroe , K. B. and Grewal , D. 1991 . Effects of price, brand, and store information on buyers' product evaluations . Journal of Marketing Research , 28 : 307 – 319 .
  • Eskin , G. J. and Barron , P. H. 1977 . Effects of price and advertising in teat-market experiments . Journal of Marketing Research , 14 : 499 – 508 .
  • Grossman , G. M. and Shapiro , C. 1984 . Informative advertising with differentiated products . Review of Economic Studies , 51 : 63 – 82 .
  • Grossman , S. J. 1976 . On the efficiency of competitive stock market where trades have diverse information . Journal of Finance , 31 : 573 – 585 .
  • Grossman , S. J. and Stiglitz , J. E. 1980 . On the impossibility of informationally efficient markets . American Economic Review , 70 : 393 – 408 .
  • Hellwig , M. F. 1980 . On the aggregation of information in competitive markets . Journal of Economic Theory , 22 : 477 – 498 .
  • Kalyanaram , G. and Winer , R. S. 1995 . Empirical generalizations from reference price research . Marketing Science , 14 : 161 – 169 .
  • Kamel , J. , Mela , C. F. and Gupta , S. 1999 . Managing advertising and promotion for long-run profitability . Marketing Science , 18 : 1 – 22 .
  • Kihlstrom , R. E. and Riordan , M. H. 1984 . Advertising as signal . Journal of Political Economy , 92 : 427 – 450 .
  • Kirmani , A. and Rao , A. R. 2000 . No pain, no gain: A critical review of the literature on signaling unobservable product quality . Journal of Marketing , 64 : 66 – 79 .
  • Klein , B. and Leftler , K. B. 1981 . The role of market forces in assuring contractual performance . Journal of Political Economy , 89 : 615 – 641 .
  • Kuo , C. J. 1992 . On the public disclosure and the allocation of information in financial markets Taipei , , Taiwan : National Chengchi University. . (Unpublished doctoral dissertation)
  • Lambin , J. J. 1976 . Advertising, competition, and market conduct in oligopoly over time. Amsterdam , , Netherlands : North-Holland. .
  • Lucas , R. E. 1972 . Expectations and the neutrality of money . Journal of Economic Theory , 4 : 103 – 124 .
  • McConnell , J. D. 1968 . Effect of pricing on perception of product quality . Journal of Applied Psychology , 52 : 331 – 334 .
  • Mela , C. F. , Jedidi , K. and Bowman , D. 1998 . The long-term impact of promotions on consumer stockpiling behavior . Journal of Marketing Research , 35 : 250 – 262 .
  • Milgrom , P. and Roberts , J. 1986 . Price and advertising signals of product quality . Journal of Political Economy , 94 : 796 – 821 .
  • Monroe , K. B. 1973 . Buyers' subjective perceptions of price . Journal of Marketing Research , 10 : 70 – 80 .
  • Moriarty , M. 1983 . Feature advertising-price interaction effects in the retail environment . Journal of Retailing , 59 ( 2 ) : 80 – 98 .
  • Nelson , P. 1974 . Advertising as information . Journal of Political Economy , 81 : 729 – 745 .
  • Parker , P. M. 1992 . Price elasticity dynamics over the adoption life cycle . Journal of Marketing Research , 29 : 358 – 367 .
  • Parker , P. M. and Neelamegham , R. 1997 . Price elasticity dynamics over the product life cycle: A study of consumer durables . Marketing Letters , 8 : 205 – 216 .
  • Popkowski-Leszczyc , P. T. L. and Rao , R. C. 1989 . An empirical analysis of national and local advertising effects on price elasticity . Marketing Letters , 1 : 149 – 160 .
  • Rao , A. R. and Monroe , K. B. 1989 . The effect of price, brand name, and store name on buyer's perceptions of product quality: An integrated review . Journal of Marketing Research , 26 : 351 – 357 .
  • Rao , V. R. 1984 . Pricing research in marketing: The state of the art . Journal of Business , 57 : 39 – 60 .
  • Sethuraman , R. and Tellis , G. 2002 . Does manufacturer advertising suppress or stimulate retail price promotions? Analytical model and empirical analysis . Journal of Retailing , 78 : 253 – 263 .
  • Shankar , V. and Bolton , R. N. 2004 . An empirical analysis of determinants of retailer pricing strategy . Marketing Science , 23 : 28 – 49 .
  • Simon , H. 1989 . Price management Amsterdam , , Netherlands : North–Holland/Elsevier. .
  • Stegeman , M. 1991 . Advertising in competitive markets . American Economic Review , 81 : 210 – 223 .
  • Steiner , R. L. 1993 . The inverse association between the margins of manufactures and retailers . Review of Industrial Organization , 8 : 717 – 740 .
  • Stigler , G. J. 1961 . The economics of information . Journal of Political Economy , 69 : 213 – 225 .
  • Vanhonacker , W. R. 1989 . Modeling the effect of advertising on price response: An econometric framework and some preliminary findings . Journal of Business Research , 19 : 127 – 149 .
  • Villarejo-Ramos , A. and Sanchez-Franco , M. 2005 . The impact of marketing communication and price promotion on brand equity . Journal of Brand Management , 12 : 431 – 444 .
  • Wittink , D. R. 1977 . Exploring territorial differences in the relationship between marketing variables . Journal of Marketing Research , 14 : 145 – 155 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.