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A Time Series Analysis to Asymmetric Marketing Competition Within a Market Structure

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  • Francisco F. R. Ramos

    (Faculty of Economics, University of Porto, Portugal)

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    Abstract

    As a complementary to the existing studies of competitive market structure analysis, the present paper proposed a time series methodology to provide a more detailed picture of marketing competition in relation to competitive market structure. Two major hypotheses were tested as part of this project. First, it was found that some significant cross- lead and lag effects of marketing variables on sales between brands existed even between differents submarkets. second, it was found that high quality brands were able to have the cross-lead and lag effects on the sales of other high quality brands and low quaklity brands while the reverse was not true, supporting the theory of asymmetric switching or sales effects of marketing variables even for the case of durables. Scientific and managerial implications were presented and some future research directions were suggested.

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    Bibliographic Info

    Paper provided by EconWPA in its series Microeconomics with number 9601001.

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    Length: 24 pages
    Date of creation: 24 Jan 1996
    Date of revision:
    Handle: RePEc:wpa:wuwpmi:9601001

    Note: Type of Document - Word 7.0 for Windows 95; prepared on IBM PC ; to print on HP; pages: 24 ; figures: included. Word document submitted by ftp
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    Web page: http://128.118.178.162

    Related research

    Keywords: Asymmetric switching; Automobile market; Cross-lag(lead) effects; Marketing; Multiple time series analysis; Sales effects;

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    References

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    1. Lee G. Cooper, 1988. "Competitive Maps: The Structure Underlying Asymmetric Cross Elasticities," Management Science, INFORMS, vol. 34(6), pages 707-723, June.
    2. Greg M. Allenby, 1989. "A Unified Approach to Identifying, Estimating and Testing Demand Structures with Aggregate Scanner Data," Marketing Science, INFORMS, vol. 8(3), pages 265-280.
    3. Greg M. Allenby & Peter E. Rossi, 1991. "Quality Perceptions and Asymmetric Switching Between Brands," Marketing Science, INFORMS, vol. 10(3), pages 185-204.
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