TITLE

EXTENDING THE ROTTERDAM MODEL TO TEST HIERARCHICAL MARKET STRUCTURES

AUTHOR(S)
Vilcassim, Naufel J.
PUB. DATE
March 1989
SOURCE
Marketing Science;Spring89, Vol. 8 Issue 2, p181
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Two issues that have implications across a firm's marketing activities are the estimation of the market response functions, and the determination of the structure of the market in which its products compete. In a recent paper, Clements and Selvanathan (1988) describe how the Rotterdam Demand System can be used to study these two issues in a joint framework. In this note we extend their model to test hierarchical market structures using data at the brand/form level. We also incorporate idiosyncratic response coefficients that capture the effects of advertising and/or other nonprice marketing mix variables separate from the effects of a price change. These extensions provide additional insights into the nature and extent of competition among brands within a product class. (Market Structures; Demand Estimation; Separability of Preferences)
ACCESSION #
6703782

 

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