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Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications

  • Glen L. Urban

    (Alfred P. Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Theresa Carter

    (International Business Machines, Greensboro, North Carolina 27407)

  • Steven Gaskin

    (Information Resources Inc., Waltham, Massachusetts 02254)

  • Zofia Mucha

    (McKinsey & Co., New York, New York 10022)

Registered author(s):

    An empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share. Market share is modeled as a log linear function of order of entry, time between entries, advertising, and positioning effectiveness. The coefficients of the entry, advertising, and positioning variables are significant in a regression analysis on an initial sample of 82 brands across 24 categories. These findings are confirmed by predictions on 47 not previously analyzed brands in 12 categories. Managerial implications for pioneers and later entrants are identified.

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    File URL: http://dx.doi.org/10.1287/mnsc.32.6.645
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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 32 (1986)
    Issue (Month): 6 (June)
    Pages: 645-659

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    Handle: RePEc:inm:ormnsc:v:32:y:1986:i:6:p:645-659
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