Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry

43 Pages Posted: 28 Sep 2012

See all articles by Simon P. Anderson

Simon P. Anderson

University of Virginia - Department of Economics

Federico Ciliberto

University of Virginia - Department of Economics; Centre for Economic Policy Research (CEPR)

Jura Liaukonyte

Cornell University

Régis Renault

University of Cergy-Pontoise - THEMA

Multiple version iconThere are 3 versions of this paper

Date Written: May 2012

Abstract

We model comparative advertising as brands pushing up own brand perception and pulling down the brand image of targeted rivals. We watched all TV advertisements for OTC analgesics 2001-2005 to construct matrices of rival targeting and estimate the structural model. These attack matrices identify diversion ratios and hence comparative advertising damage measures. We find that outgoing comparative advertising attacks are half as powerful as self-promotion in raising own perceived quality and cause more damage to the targeted rival than benefit to the advertiser. Comparative advertising causes most damage through the pull-down effect and has substantial benefits to other rivals.

Keywords: advertising targets, analgesics, attack matrix, comparative advertising, diversion ratios, push and pull effects

JEL Classification: L13, L65, M37

Suggested Citation

Anderson, Simon P. and Ciliberto, Federico and Liaukonyte, Jura and Renault, Régis, Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry (May 2012). CEPR Discussion Paper No. DP8988. Available at SSRN: https://ssrn.com/abstract=2153420

Simon P. Anderson (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States
804-924-3861 (Phone)
804-982-2904 (Fax)

Federico Ciliberto

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jura Liaukonyte

Cornell University ( email )

347 Warren Hall
Ithaca, NY 14853
United States

Régis Renault

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011
France
+33 1 34 25 6173 (Phone)

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