Abstract
The authors examine the link between advertising and price effects and propose that this relationship depends on the specific advertising positioning strategy employed by an advertiser. The authors note that advertising has different goals, depending on the competitive context of the brand, with some advertisers positioned to differentiate between brands and others positioned to narrow the perceived difference between brands. The authors identify specific types of nonprice advertising positioning that increase brand equity and category price sensitivity, those that decrease both, and those that increase brand equity while increasing category price sensitivity. The hypotheses are tested in two experiments across different product categories. The results imply that tests of advertising effectiveness must extend beyond brand attitudinal measures.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
