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How do competitors react to each other's price-promotion and advertising attacks? What are the reasons for the observed reaction behavior? We answer these questions by performing a large-scale empirical study on the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories over a four-year time span.
Co-authored by Dominique Hanssens, Ph.D, co-founder and partner at MarketShare. Dr. Hanssens is the Bud Knapp Professor of Marketing at the UCLA Anderson School of Management, where he has been on the faculty since 1977.
