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Commentary—Defensive Marketing Strategies

Listed author(s):
  • John R. Hauser

    ()

    (Massachusetts Institute of Technology, Cambridge, Massachusetts 02142)

  • Steven M. Shugan

    ()

    (Warrington College of Business, University of Florida, Gainesville, Florida 32611)

For every new product and service entrant, there are usually many incumbents who must defend their positions in the market. Hence, defensive strategy is as least as critical as new-product strategy. Our 1983 article argued that defensive strategy critically depends on the distribution of buyer preferences and the position of the new entrant relative to the position of the incumbent in a multidimensional attribute space. Since the appearance of our 1983 article in , research in defensive strategy has progressed in both prescriptive and descriptive directions. Subsequent research on defensive strategy has also addressed empirical, methodological, theoretical, and substantive issues. Today, defensive strategy is more important than ever, with shorter new-product life cycles, persistent service innovation, remarkable technological change, global competition, and the invention of new channels of distributions.

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File URL: http://dx.doi.org/10.1287/mksc.1070.0341
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Article provided by INFORMS in its journal Marketing Science.

Volume (Year): 27 (2008)
Issue (Month): 1 (01-02)
Pages: 85-87

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Handle: RePEc:inm:ormksc:v:27:y:2008:i:1:p:85-87
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  1. Alexander Chernev, 2007. "Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice," Journal of Consumer Research, Oxford University Press, vol. 33(4), pages 430-444, January.
  2. Jan-Benedict E. M. Steenkamp & Vincent R. Nijs & Dominique M. Hanssens & Marnik G. Dekimpe, 2005. "Competitive Reactions to Advertising and Promotion Attacks," Marketing Science, INFORMS, vol. 24(1), pages 35-54, September.
  3. Lancaster, Kelvin, 1980. "Competition and Product Variety," The Journal of Business, University of Chicago Press, vol. 53(3), pages 79-103, July.
  4. Ajay Kalra & Surendra Rajiv & Kannan Srinivasan, 1998. "Response to Competitive Entry: A Rationale for Delayed Defensive Reaction," Marketing Science, INFORMS, vol. 17(4), pages 380-405.
  5. Wilhelm, Wilbert E. & Xu, Kaihong, 2002. "Prescribing product upgrades, prices and production levels over time in a stochastic environment," European Journal of Operational Research, Elsevier, vol. 138(3), pages 601-621, May.
  6. Niladri B. Syam & Ranran Ruan & James D. Hess, 2005. "Customized Products: A Competitive Analysis," Marketing Science, INFORMS, vol. 24(4), pages 569-584, February.
  7. K. Ravi Kumar & D. Sudharshan, 1988. "Defensive Marketing Strategies: An Equilibrium Analysis Based on Decoupled Response Function Models," Management Science, INFORMS, vol. 34(7), pages 805-815, July.
  8. William T. Robinson, 1988. "Marketing Mix Reactions to Entry," Marketing Science, INFORMS, vol. 7(4), pages 368-385.
  9. Vishal P. Singh & Karsten T. Hansen & Robert C. Blattberg, 2006. "Market Entry and Consumer Behavior: An Investigation of a Wal-Mart Supercenter," Marketing Science, INFORMS, vol. 25(5), pages 457-476, September.
  10. W.J. Lane, 1980. "Product Differentiation in a Market with Endogenous Sequential Entry," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 237-260, Spring.
  11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
  12. Bayus Barry & Chintagunta Pradeep, 2003. "Competitive Entry and Pricing Responses to Product Innovation," Review of Marketing Science, De Gruyter, vol. 1(1), pages 1-26, August.
  13. Gregory S. Carpenter & Kent Nakamoto, 1990. "Competitive Strategies for Late Entry into a Market with a Dominant Brand," Management Science, INFORMS, vol. 36(10), pages 1268-1278, October.
  14. Thomas S. Gruca & K. Ravi Kumar & D. Sudharshan, 1992. "An Equilibrium Analysis of Defensive Response to Entry Using a Coupled Response Function Model," Marketing Science, INFORMS, vol. 11(4), pages 348-358.
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