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Dynamics of Price Elasticity and Brand Life Cycles: An Empirical Study

Hermann Simon
Journal of Marketing Research
Vol. 16, No. 4 (Nov., 1979), pp. 439-452
DOI: 10.2307/3150805
Stable URL: http://www.jstor.org/stable/3150805
Page Count: 14
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Dynamics of Price Elasticity and Brand Life Cycles: An Empirical Study
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Abstract

A brand life cycle model is developed which incorporates carryover effects and obsolescence and allows for time-varying price responses. An empirical study of 35 brands in seven different markets shows typical changes in price elasticity over the brand life cycle. Important implications for strategic pricing and antitrust issues are indicated.

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