Advertising and Price
Andrew Ehrenberg, John Scriven and Neil Barnard
A pervasive idea in marketing and economics is that the rational consumer will choose a brand on price unless given a reason not to. Brand differentiation is therefore expected to give a respite from the apparently relentless pressure of price competition. A functional advantage is, however, usually not easy to sustain (if successful, the competition will copy it). Marketing people therefore look to advertising to play a key part in achieving the desired brand differentiation. But is this view justified? Is there systematic evidence...