Preprint
Manufacturer Advertising and Retail Prices: An Empirical Investigation
SSRN Electronic Journal
2017
Abstract
How do retail prices respond to manufacturer advertising? We use over two years of weekly data for 286 products across eleven product categories to show that retail prices change over and above what is expected after accounting for changes in wholesale prices. This suggests that retailers may behave in a strategic fashion and take advantage of the increased consumer pull when a brand is being advertised. We estimate advertising effects on retail prices that are of sizable magnitude and that vary considerably across products and categories. We propose a number of product and category characteristics that may help explain the way retailers adjust prices in the presence of manufacturer advertising and explore their impact in our data
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Details
- Title
- Manufacturer Advertising and Retail Prices
- Creators
- Michaela Draganska - Drexel University
- Publication Details
- SSRN Electronic Journal
- Publisher
- SSRN
- Resource Type
- Preprint
- Language
- English
- Academic Unit
- Marketing
- Other Identifier
- 991021810514804721