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| Author: | Sen, K. C. |
| Title: | Advertising intensity within the carbonated soft drinks industry |
| Journal: | Journal of Advertising Research
1997 : MAY-JUN, VOL. 37:3, p. 37-47 |
| Index terms: | FOOD AND DRINKS INDUSTRY INTERFIRM COMPARISONS SUPPLY AND DEMAND BRANDS EXPENDITURE |
| Language: | eng |
| Abstract: | This paper studies of advertising expenditures of several brands of carbonated soft drinks, and shows that both supply and demand side factors affect advertising intensity. The demand side influence is the need to advertise more on the subcategory of diet brands. Brand market share has a negative impact on advertising intensity because of threshold effects and accumulated market goodwill. Total market growth also has a negative influence on advertising intensity, and this occurs because consumers get familiar with the product category because of increased consumption. The interfirm rivalry between the two largest firms is the main supply side determinant. The largest firms don't get any benefits of economies of scale in advertising but instead spend more on advertising their brands compared to the competition. |
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