Product innovation is endemic among consumer packaged goods firms, and is an integral component of their marketing strategy. As innovations impact markets, there is a pressing need to develop market response models that can adapt to such changes. Our model copes with the challenges dynamic...

Advertising often aims at creating and reinforcing brand differentiation, which should translate into reduced price competition. Currently unknown are the boundary conditions for long-term advertising benefits, the route through which advertising effects materialize, and the role of competitive...