TITLE

COMPETITIVE RESPONSE AND EQUILIBRIA

AUTHOR(S)
Lal, Rajiv; Padmanabhan, V.
PUB. DATE
June 1995
SOURCE
Marketing Science;1995 Part 2 of 2, Vol. 14 Issue 3, pG101
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper investigates the relationship between market share and promotional expenditures in the long run. Using data that span a decade and 91 product categories we find that market shares are stationary for a majority of the products in the data base. We find that relative promotional expenditures for the products are offsetting in the long run. Finally, for products whose market shares show a trend, it is difficult to discern the impact of relative promotional expenditure on the evolution of market share. This result generalizes the empirical finding of Bass et al. (1984) that "... offsetting competitive activity plays a role in the maintenance of what appears to be stationary and zero order behavior."
ACCESSION #
4477240

 

Related Articles

  • Outsourcing's Other Side. Zarocostas, John // WWD: Women's Wear Daily;5/23/2006, Vol. 191 Issue 110, p9 

    The article focuses on a study on the cost effectiveness and risk of creating new competitors in moving manufacturing businesses abroad. St�phane Garelli, principal author of the study and a professor at the business school, found that the global firms most at risk of creating their own...

  • Explaining Variations in the Advertising & Promotional Costs/Sales Ratio: A Rejoinder. Ailawadi, Kusum; Farris, Paul; Parry, Mark // Journal of Marketing;Jan1997, Vol. 61 Issue 1, p93 

    In 1994, the authors (see Ailawadi, Farris, and Parry 1994) reported the results of a failed attempt to validate the findings of Balasubramanian and Kumar's (1990) empirical analysis of the determinants of the firm-level ratio of advertising and promotion to sales (A&P/S). Balasubramanian and...

  • Saab jettisons some print ads to concentrate on events. Connelly, Mary // Automotive News;5/7/20007, Vol. 81 Issue 6254, p24D 

    The article reports that Saab Automobile AB is spending less on magazine advertising in 2007. According to advertising manager Steve Haener, the company has reduced its print presence. He said that event promotion is cost-effective and will put the small-volume luxury brand on consumer shopping...

  • Midea counts on family TV theme in leadership bid. Sudhaman, Arun // Media: Asia's Media & Marketing Newspaper;10/8/2004, p10 

    This article reports that rice cooker brand Midea has unveiled a family themed campaign in an effort to consolidate its market leadership position. Created by Leo Burnett Guangzhou, the new TV campaign will air in China and Hong Kong for one year, communicating the benefits of an anti-mycosis...

  • AN EQUILIBRIUM ANALYSIS OF DEFENSIVE RESPONSE TO ENTRY USING A COUPLED RESPONSE FUNCTION MODEL. Gruca, Thomas S.; Kumar, K. Ravi; Sudharshan, D. // Marketing Science;Fall92, Vol. 11 Issue 4, p348 

    We determine the optimal response to competitive entry in a market characterized by a market share attraction model. The response of an incumbent is limited to changes in prices, advertising and distribution expenditures; brand positions are assumed to be fixed. We also assume that the entrant's...

  • Explaining Variations in the Advertising & Promotional Costs/Sales Ratio: A Reanalysis. Balasubramanian, Siva K.; Kumar, V. // Journal of Marketing;Jan1997, Vol. 61 Issue 1, p85 

    The authors focus on their 1990 model (B&K; see Balasubramanian and Kumar 1990), which indicates that market share, market growth, and their interaction are important predictors of the ratio of advertising and promotional costs to sales (A&P/S). In sharp contrast, Ailawadi, Farris, and Parry's...

  • Explaining Variations in the Advertising & Promotional Costs/Sales Ratio: A Response, Research Criteria, and Guidelines. Balasubramanian, Siva K.; Kumar, V. // Journal of Marketing;Jan1997, Vol. 61 Issue 1, p97 

    Ailawadi, Farris, and Parry (1997) claim that their analyses have invalidated the Balasubramanian and Kumar (1990) model. The authors show reasons why their claim is incorrect and highlight key criteria and guidelines that can help further research.

  • Getting Your Wish List. McPherson, Doug // Response;Oct2004, Vol. 13 Issue 1, p44 

    This article analyzes the rising cost of advertisement of products with respect to their falling response. According to Donald R. Ryan, a senior partner with iKnowtion, a marketing consulting firm in Burlington, Massachusetts, rising prices of general advertising and falling response rates are...

  • Long live the crisis, mother of all inventions. Rodríguez, Inda M. // Caribbean Business;4/23/2009, Vol. 37 Issue 16, p57 

    The article provides information on Guerilla marketing, which is defined as an unconventional system of promotions that relies on imagination, time and energy rather than on having a big marketing budget. It mentions that it is a perfect method to practice amidst the shrinking economy and...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics