Although this article's primary focus is the moderating effect of the business cycle on a brand's own price and advertising effectiveness, we also consider three additional managerially important issues. First, we investigate whether the effectiveness of advertising or price systematically declines or increases with the passage of time. Second, we examine whether advertising systematically moderates a brand's price elasticity. Third, we examine whether the effect of competitor advertising and price varies across the business cycle. Figure 1 provides a schematic overview of the major aspects of our study.