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