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Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry

Renault, Régis; Liaukonyte, Jura; Ciliberto, Federico; Anderson, Simon P. (2012-04), Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry. https://basepub.dauphine.fr/handle/123456789/12285

Type
Document de travail / Working paper
External document link
http://mpra.ub.uni-muenchen.de/38626/
Date
2012-04
Publisher
University Library of Munich
Series title
MPRA Paper
Series number
38626
Published in
Munich
Pages
40
Metadata
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Author(s)
Renault, Régis

Liaukonyte, Jura

Ciliberto, Federico

Anderson, Simon P.
Abstract (EN)
We model comparative advertising as brands pushing up own brand perception and pulling down the brand image of targeted rivals. We watched all TV advertisements for OTC analgesics 2001-2005 to construct matrices of rival targeting and estimate the structural model. These attack matrices identify diversion ratios and hence comparative advertising damage measures. We find that outgoing comparative advertising attacks are half as powerful as self-promotion in raising own perceived quality and cause more damage to the targeted rival than benefit to the advertiser. Comparative advertising causes most damage through the pull-down effect and has substantial benefits to other rivals.
Subjects / Keywords
Comparative advertising; advertising targets; diversion ratios; attack matrix; push and pull effects; analgesics
JEL
L13 - Oligopoly and Other Imperfect Markets
M37 - Advertising
L65 - Chemicals; Rubber; Drugs; Biotechnology

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