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ISSN : 1229-8778
Literature suggests that firms within a same product category are competitive in nature. This study, however, was stimulated by the proposition that, as one of win-win marketing strategies, cooperative advertising from firms within a same product category may benefit both companies involved given that cooperative advertising can affect consumer perceptions positively and in turn expand market size for the product category. To this end, this study examines if there is difference in consumer responses dependent upon the types of advertising (independent advertising vs. cooperative advertising). From theoretical and practical points, this study further investigates if market position (market leading brand vs. market following brand) of companies involved in the cooperative advertising matters for consumer responses to advertising. Study results indicate that brand attitudes and purchase intention for brands differ depending on the types of advertising and market position. Importantly, there was an interaction effect between the types of advertising and market position on brand attitudes and purchase intention for brands. Based on the results, practical implications are discussed, followed by limitations of the study.
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