This research uses P&G's value pricing initiative as a context for testing the ability of a normative economic model to predict competitor and retailer response. We first estimate the response parameters of a demand function for each brand from the period before value pricing was initiated. We...

This paper jointly examines how consumers' perceptions drive their usage of store brands and deals for national brands. We find that both behaviors are influenced by economic as well as hedonic factors. Among hedonic factors, peer approval plays an important role in determining both behaviors....