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This paper tests for the presence of differences among the effectiveness of profitability determinants between strategic groups with advertised and unadvertised products by using both the regression analysis and the Chow‐test. Panel data for the 23 Greek dairy firms that operated over the period 1990‐94 are used to examine the determinants of firm profit margins. The results show significant differences for the effects of strategies on profitability between the two strategic groups. Only the firms with nationally branded goods, which are more profitable than the group of producers of unadvertised goods, can effectively apply both the advertising and the diversification strategies to increase profitability

The interaction between public policy, retail structure and conduct has been well debated but a paucity of empirical evidence exploring the interrelationships exists. This paper examines the impact of one policy measure, retail pricing legislation, on retail conduct. It focuses on the experience of the Republic of Ireland, which has had a ban on below‐cost selling of certain grocery products since 1988. OLS regression of quarterly data on a basket of 13 grocery product categories over the period 1984‐1994 identifies legislation as a key influence on retail conduct and as a significant variable in the explanation of retail gross margins. Evidence is found to support a positive relationship between the prohibition of below‐cost selling and retail gross margins indicating a reduction in price competition within the category. Per capita incomes, retailer concentration and retail advertising are found to be significant but negatively related to retail gross margins.