The Effect of Competitive Advertising Interference on Sales for Packaged Goods
Publication Type
Journal Article
Publication Date
4-2008
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
Discipline
Marketing
Research Areas
Marketing
Publication
Journal of Marketing Research
Volume
45
Issue
2
First Page
211
Last Page
225
ISSN
0022-2437
Identifier
10.1509/jmkr.45.2.211
Citation
Bonfrer, Andre and Danaher, Peter J..
The Effect of Competitive Advertising Interference on Sales for Packaged Goods. (2008). Journal of Marketing Research. 45, (2), 211-225.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1394
Additional URL
https://doi.org/10.1509/jmkr.45.2.211