Do Managers Overreact to Each Others Promotional Activity?
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.
Organisational Behaviour and Human Resources
International Journal of Research in Marketing
Bonfrer, Andre and Brodie, R.J..
Do Managers Overreact to Each Others Promotional Activity?. (1996). International Journal of Research in Marketing. 4, (4), 378-387. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2298