Moore, William L.; Winer, Russell S.
January 1987
Marketing Science;Winter87, Vol. 6 Issue 1, p46
Academic Journal
Donald Dietrich and Paul Ries raises issues about the estimation of competitive maps from consumer choice data and estimating the changes in the brand positions over time as a function of marketing mix variables. Dietrich raises an important point about the assumed stability of the parameters in market response functions. Ries indicates that the coffee market represents an unusually easy market from which sensible competitive maps can be recovered due to the natural differences in brewing technology. They feel that such a market is a good place to start with these techniques in that such sensible results provide a necessary condition for the validity of their method. Ries is correct in pointing out that they are limited to drawing inferences about household behavior and not individuals, and that situational usage variation is not accommodated. This is a drawback common to all models and methods using scanner or diary panel data, and it is only recently that they are beginning to understand the implications of the aggregation problem.


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