Why firms do co-promotions in mature markets?

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When their products or services reached the mature stage of life cycle, many telecommunications firms started to form alliance partnering with companies in other industries such as movie theaters and fast food restaurants. They offer discounts to their consumers when they buy products or services from their partnering companies. We show that, even in markets where the total demand does not grow, such co-promotion partnering with companies in different industries can benefit allied firms as well as target consumers who buy products or services from the allied firms. The benefits come from discriminating prices between consumers in price-sensitive segments and price-insensitive segments. (c) 2006 Elsevier Inc. All rights reserved.
Publisher
ELSEVIER SCIENCE INC
Issue Date
2006-09
Language
English
Article Type
Article
Keywords

BRAND ALLIANCES; MONOPOLY; COUPONS; DUOPOLY; SALES

Citation

JOURNAL OF BUSINESS RESEARCH, v.59, no.9, pp.1035 - 1042

ISSN
0148-2963
DOI
10.1016/j.jbusres.2006.04.002
URI
http://hdl.handle.net/10203/4591
Appears in Collection
MT-Journal Papers(저널논문)
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