Abstract: | Competitive intra-channel forces are an important factor to the success (or failure) of newly introduced brands. The present study offers an extended theoretical framework of the advertising life-cycle concept, which illuminates the changes in the manufacturer-retailer balance of power within the marketing channel along the development path of new brands. The theoretical conclusions are then tested against a unique data set. The empirical findings confirm the prediction that dynamic competitive elements will change the intra-channel pricing balance. |