Heerde, H. J. vanGijsbrechts, E.Pauwels, Koen Hendrik2015-12-042015-12-042015-100022-2437http://hdl.handle.net/10679/1247https://doi.org/10.1509/jmr.13.0260Due to copyright restrictions, the access to the full text of this article is only available via subscription.This article explores how media coverage of a price war affects customer, retailer, and investor reactions over time. Using data covering a Dutch supermarket price war (2003–2005), the authors find that price reductions, especially deep reductions, trigger media coverage of the price conflict. This sets off a chain of reactions. Press messages have a significant effect on market share and abnormal stock returns, beyond retailers' own price and advertising. Importantly, this study uncovers striking asymmetries regarding the kind of coverage to which stakeholders react: whereas consumers only respond to the tone of price-related press coverage, retailers and investors only react to its quantity. Next, media coverage feeds back into the retailers' pricing actions: more media coverage triggers new price cuts in addition to those dictated by competitive reactions. As such, media coverage triggers a deeper spiral of price cuts, intensifying the competitive price battle. However, as the price war progresses, media coverage becomes less frequent and less favorable, which decelerates the downward price spiral.engrestrictedAccessarticle52567469300036825590000810.1509/jmr.13.0260Media coveragePrice warRetailingHierarchical BayesTime series econometrics2-s2.0-84945133914