Price Advertising by Manufacturers and Dealers

• 成果类型: Article
• 署名作者: Xu, Linli; Wilbur, Kenneth C.; Siddarth, S.; Silva-Risso, Jorge M.
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; University of California System; University of California San Diego; University of Southern California; University of California System; University of California Riverside
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2014.1969
• 发表日期: 2014
• 页码: 2816-2834
• 关键词: Advertising; automobiles; channels; choice modeling; demand estimation

摘要

The central prediction of the current paper is that manufacturer price advertising may be a less effective tool for influencing demand than retailer price advertising. We manipulate the source of a price advertisement in an experiment run on a sample of pickup truck owners. Manufacturer price advertising leads to lower indicators of potential demand than dealer price advertising, even among consumers who are experienced with the brand. An econometric analysis of pickup truck sales, price, and advertising data shows that this effect is large enough to detect in market data. Manufacturer and dealer price advertising both increase the demand intercept and the responsiveness of demand to price, but the effects of dealer price advertising are larger. Although dealer price advertising is more effective than manufacturer price advertising, manufacturer price advertising may still be useful to reduce channel conflict.