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What is Reciprocal Effects of Brand Extensions about?

This study investigates whether advertising a brand extension positively impacts sales of the parent brand through reciprocal spillover effects. Using scanner panel data on yogurt purchases, the authors find that advertising a brand extension increases choice of the parent brand. This provides empirical support for anecdotal claims that brand extensions can benefit existing products. The study separates spillover and substitution effects and finds positive spillover from advertising, unlike previous researc

Author
NamAn
Language
EN

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