Firm-based market structure analysis using competitive advertising responses

In past literature, consumer-based measures reflecting perceptions or behaviour of consumers have been used for market structure analysis. However, for developing competitive strategies, firms may need to identify market structures based on how their competitors perceive the market and how they behave. In this article, we develop a firm-based measure using advertising reaction data to drive market structure. We then test hypotheses regarding the situations where the firm-based competitive maps converge with those derived from a traditional consumer-based approach. To derive competitive maps, we collected time-series advertising and sales data for 27 SBUs in six consumer-product categories. Survey data were also collected from marketing managers to test the hypotheses. Our investigation suggests that the maps of two approaches are consistent when markets are stable and predictable.
Publisher
Blackwell Publishing
Issue Date
2001
Language
ENG
Citation

INTERNATIONAL JOURNAL OF ADVERTISING, v.20, no.2, pp.223 - 237

ISSN
0265-0487
URI
http://hdl.handle.net/10203/4598
Appears in Collection
MT-Journal Papers(저널논문)
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