Advertising and its effect on industrial concentration: a contingency perspective.

The ongoing debate over the effect of advertising on industrial concentration is investigated. Evidence from prior literature appears to indicate that there is no consistent relationship across industries. A framework which maintains that the effect of advertising on industrial concentration is contingent upon the type of industry being examined (convenience vs. nonconvenience) is proposed. In particular, it is proposed that: a) advertising is positively associated with industrial concentration in convenience goods industries; and b) advertising is not associated with industrial concentration in nonconvenience industries. Longitudinal data from the soft drink and personal computer industries is analyzed using a distributed-lag model to demonstrate the validity of the framework.

Main Author: Taylor, Charles.
Other Authors: Shaoming, Zou., Ozsomer, Aysegul.
Language: English
Published: 1996
Online Access: http://ezproxy.villanova.edu/login?url=https://digital.library.villanova.edu/Item/vudl:178800