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| Author: | Sriram, S. Kadiyali, V. |
| Title: | Empirical investigation of channel reactions to brand introductions |
| Journal: | International Journal of Research in Marketing
2009 : DEC, VOL 26:4, p. 345-355 |
| Index terms: | pricing brands new products supply chain distribution channels |
| Language: | eng |
| Abstract: | In this article the impact of a new product introduction on the pricing behavior of incumbent manufacturers and retailers is studied. The authors examine two toothpaste brand introductions during 1993-1995, and calculate the changes in retail and wholesale prices using estimates of the demand and supply model. In the first entry, the new product introduction did not increase competition between manufacturers, and the channel power balance remained the same. After the second entry, however, the retailers' profit share increased at the expense of manufacturers. The study offers manufacturers and retailers insight on the possible reactions of channel members to new product introductions. |
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