A. Kaul et Dr. Wittink, EMPIRICAL GENERALIZATIONS ABOUT THE IMPACT OF ADVERTISING ON PRICE SENSITIVITY AND PRICE, Marketing science, 14(3), 1995, pp. 151-160
Consumers' sensitivities to price changes are an important input to st
rategic and tactical decisions. It has been argued that price sensitiv
ities depend on factors such as advertising Prior studies on the effec
t of advertising on consumer price sensitivity have found seemingly co
nflicting results. We analyze the characteristics of previous studies
in marketing and generate a set of three empirical generalizations. Th
ese are (1) an increase in price advertising leads to higher price sen
sitivity among consumers, (2) the use of price advertising leads to lo
wer prices, and (3) an increase in nonprice advertising leads to lower
price sensitivity among consumers. These generalizations have importa
nt implications for managers and researchers. Managers need to coordin
ate their advertising and pricing decisions to attain maximum profits.
For researchers, our summary and discussion of empirical results prov
ide directions for future.