Perception Spillovers Across Competing Brands: A Disaggregate Model of How and When

Journal of Marketing Research, Forthcoming

Marshall School of Business Working Paper No. MKT 14-09

47 Pages Posted: 30 Apr 2008

See all articles by Ramkumar Janakiraman

Ramkumar Janakiraman

University of South Carolina - Darla Moore School of Business

Catarina Sismeiro

Imperial College London, Tanaka Business School

Shantanu Dutta

University of Southern California - Marshall School of Business

Date Written: May 16, 2008

Abstract

Drawing on the accessibility-diagnosticity framework, and previous literature in branding and order-of-entry, the authors hypothesize that consumer spillovers can also occur across directly competing products that do not share brand names. The authors suggest two mechanisms (prior perception spillover and dynamic perception spillover) and one moderating variable (product/brand similarity). To test for spillovers across competing brands, the authors develop a structural Bayesian learning model and estimate it using prescription choice and marketing communication data from a panel of physicians. From their model results, the authors find evidence of prior and dynamic perception spillovers across competing brands only when brands are sufficiently similar. In contrast, the authors find no evidence of spillover effects across products that are highly dissimilar. Finally, several policy experiments illustrate the strength and significance of competitive spillovers for product diffusion and, based on their results, the authors derive strategic implications for order-of-entry effects and the entry of "me-too" products.

Keywords: Spillovers, Perception Spillovers, Branding, New Products, Consumers, Choice, Bayesian Learning Framework, Physician Prescription Behavior, Pharmaceuticals

Suggested Citation

Janakiraman, Ramkumar and Sismeiro, Catarina and Dutta, Shantanu, Perception Spillovers Across Competing Brands: A Disaggregate Model of How and When (May 16, 2008). Journal of Marketing Research, Forthcoming; Marshall School of Business Working Paper No. MKT 14-09. Available at SSRN: https://ssrn.com/abstract=1126927

Ramkumar Janakiraman (Contact Author)

University of South Carolina - Darla Moore School of Business ( email )

1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States
8037770534 (Phone)

HOME PAGE: http://businessanalyticslens.com/

Catarina Sismeiro

Imperial College London, Tanaka Business School ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Shantanu Dutta

University of Southern California - Marshall School of Business ( email )

Hoffman Hall 701
Los Angeles, CA 90089-1427
United States
213-740-5038 (Phone)
213-740-7828 (Fax)

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