Abstract

This research hypothesizes and tests the following propositions: (1) competitive performance of a brand varies across retail chains, driven by differences in retailers' promotion decisions for the brand, and (2) type, timing, frequency, and magnitude of retail promotions affects brands' competitive performance. Further, we illustrate the presence of asymmetry in brand competition and test the expectation that differences in market shares and price levels are major factors contributing to competitive asymmetry. A model of brand competition is formulated at the retail level. The results indicate that the competitive performance of brands are not uniform across pairs of brands and the retail chains in a market.

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