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This study was conducted to investigate the effects of horizontal cooperative advertising in which two or more brands from different product categories are featured together in advertising. This study identified compatibility of usage occasion and type of ad-processing strategy as important factors in determining ad effectiveness, and several hypotheses were induced based on these factors. From theoretical and practical points, this study examined if there is difference in consumer responses dependent upon compatibility of usage occasion(high compatibility vs. low compatibility) and type of ad-processing strategy(top-down ad vs. bottom-up ad). The results of empirical testing are as follows: In the case of the horizontal cooperative advertising, there were significant interaction effects between compatibility of usage occasion and type of ad-processing strategy on consumers' attitude toward the ad and purchase intention. Based on the results, managerial implications as well as limitations and future research directions were presented and discussed.
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