Assessing the Competitive Impact of Type, Timing, Frequency and Magnitude of Retail Promotions
This research hypothesizes and tests the following propositions: (1) competitive performance of a brand varies across retails 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 performances of brands are not uniform across pairs of brands and the retails chains in a market.