Do Managers Overreact to Each Others Promotional Activity?

Publication Type

Journal Article

Publication Date

1996

Abstract

This paper examines the generalisability of Leeflang and Wittink's findings that managers tend to under- and overreact to each others' promotional activity (Competitive reaction versus consumer response: Do managers overreact?, International Journal of Research in Marketing 13 (1996), 103–119). Weekly supermarket scanner data similar to that used by Leeflang and Wittink is used to test hypotheses about price and promotion reactions by manufacturers and retailers to competitors' actions. The replication study provides even stronger evidence that managers tend to under- or overreact and thus their behaviour deviates from the normative implications of economic theory.

Discipline

Business

Research Areas

Organisational Behaviour and Human Resources

Publication

International Journal of Research in Marketing

Volume

4

Issue

4

First Page

378

Last Page

387

ISSN

0167-8116

Identifier

10.1016/s0167-8116(96)00020-1

Publisher

Elsevier

Share

COinS