Generic and Brand Advertising Strategies Under Inter-Industry Competition

Generic and Brand Advertising Strategies Under Inter-Industry Competition Industries invest in over billion dollars annually to drive up the primary demand and to fence off competing new industries’ threat to their customer bases. Companies in addition to contributing to industry generic campaign also heavily rely on brand advertising in order to capture a greater market share. Using a game-theoretic approach, we study generic and brand advertising competition under such an inter-industry competitive framework. We built an analytical model to study two competing industries each simultaneously making generic advertising decisions followed by firms within each industry simultaneously conducting brand advertising. We found that the mere presence of a rival industry can act as an impetus for an industry to invest in generic advertising. Model analyses and numerical studies suggest that there is a clear interactive nature between the two types of advertising decisions under inter-industry competitive framework. The generic advertising spending of an industry increases as the firms within that industry are more asymmetric. While a firm’s brand advertising spending increases as the generic advertising of its associated industry becomes more effective and that of the rival industry becomes less effective. Extensions of the main model suggest that there is a first-mover advantage in generic advertising under inter-industry competition. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Customer Needs and Solutions Springer Journals

Generic and Brand Advertising Strategies Under Inter-Industry Competition

Loading next page...
 
/lp/springer_journal/generic-and-brand-advertising-strategies-under-inter-industry-xqUaqJMHYX
Publisher
Springer US
Copyright
Copyright © 2017 by Springer Science+Business Media New York
Subject
Business and Management; Marketing; Economics, general; Management
ISSN
2196-291X
eISSN
2196-2928
D.O.I.
10.1007/s40547-017-0070-2
Publisher site
See Article on Publisher Site

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial