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Does competitive entry structurally change key marketing metrics?

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  • Kornelis, Marcel
  • Dekimpe, Marnik G.
  • Leeflang, Peter S.H.

Abstract

To what extent does competitive entry create a structural change in key marketing metrics? New players may just be a temporal nuisance to incumbents, but could also fundamentally change the latter's performance evolution, or induce them to permanently alter their spending levels and/or pricing decisions. Similarly, the addition of a new marketing channel could permanently shift shopping preferences, or could just create a short-lived migration from existing channels. The steady-state impact of a given entry or channel addition on various marketing metrics is intrinsically an empirical issue for which we need an appropriate testing procedure.

Suggested Citation

  • Kornelis, Marcel & Dekimpe, Marnik G. & Leeflang, Peter S.H., 2008. "Does competitive entry structurally change key marketing metrics?," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 173-182.
  • Handle: RePEc:eee:ijrema:v:25:y:2008:i:3:p:173-182
    DOI: 10.1016/j.ijresmar.2008.01.003
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    4. Pauwels, Koen & Leeflang, Peter S.H. & Teerling, Marije L. & Huizingh, K.R. Eelko, 2011. "Does Online Information Drive Offline Revenues?," Journal of Retailing, Elsevier, vol. 87(1), pages 1-17.
    5. Esteban-Bravo, Mercedes & Vidal-Sanz, Jose M. & Yildirim, Gökhan, 2012. "Expenditure trends in US advertising : long-term effects and structural changes with new media introductions," DEE - Working Papers. Business Economics. WB wb121506, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    6. Harald J. van Heerde & Shuba Srinivasan & Marnik G. Dekimpe, 2010. "Estimating Cannibalization Rates for Pioneering Innovations," Marketing Science, INFORMS, vol. 29(6), pages 1024-1039, 11-12.
    7. Leeflang, Peter, 2011. "Paving the way for “distinguished marketing”," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 76-88.

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