IDEAS home Printed from https://ideas.repec.org/a/jec/journl/v1y2005i2p187-206.html
   My bibliography  Save this article

Optimal Defensive Strategies under Varying Consumer Distributional Patterns and Market Maturity

Author

Listed:
  • Ulrike Schuster

    (Vienna University of Economics and Business Administration, Austria)

  • J?rgen W?ckl

    (Vienna University of Economics and Business Administration, Austria)

Abstract

In this paper we describe a simulation approach to explore optimal defensive strategies concerning an entrant situation in an artificial consumer market. There are two questions of interest concerning the adaptation of the strategy to obtain maximal profits¡Xthe effects of (1) varying heterogeneity of the considered consumer aspiration points and (2) the maturity of the market at the time of entry. The resulting optimal price-budget combinations remain stable up to a certain degree of heterogeneity. Then a threshold is reached beyond which further disaggregating the market leads to boundary solutions. The entrant threshold seems to be slightly lower than the incumbent threshold. In the case of very late entry a boundary solution seems to be optimal for the entrant in the sense of minimizing losses.

Suggested Citation

  • Ulrike Schuster & J?rgen W?ckl, 2005. "Optimal Defensive Strategies under Varying Consumer Distributional Patterns and Market Maturity," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 1(2), pages 187-206, July.
  • Handle: RePEc:jec:journl:v:1:y:2005:i:2:p:187-206
    as

    Download full text from publisher

    File URL: http://www.jem.org.tw/content/pdf/Vol.1No.2/05.pdf
    Download Restriction: no

    File URL: http://www.jem.org.tw/content/abstract/Vol.1No.2/English/05.htm
    Download Restriction: no

    References listed on IDEAS

    as
    1. John R. Hauser & Steven M. Shugan, 2008. "Defensive Marketing Strategies," Marketing Science, INFORMS, vol. 27(1), pages 88-110, 01-02.
    2. Asim Ansari & Nicholas Economides & Avijit Ghosh, 1994. "Competitive Positioning in Markets with Nonuniform Preferences," Marketing Science, INFORMS, vol. 13(3), pages 248-273.
    3. 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.
    4. Suman Basuroy & Dung Nguyen, 1998. "Multinomial Logit Market Share Models: Equilibrium Characteristics and Strategic Implications," Management Science, INFORMS, vol. 44(10), pages 1396-1408, October.
    5. 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.
    6. William T. Robinson, 1988. "Marketing Mix Reactions to Entry," Marketing Science, INFORMS, vol. 7(4), pages 368-385.
    7. 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.
    8. Hauser, John R., 1987. "Existence and uniqueness of price equilibria in Defender," Working papers 1878-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:1:y:2005:i:2:p:187-206. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su). General contact details of provider: http://edirc.repec.org/data/cbfcutw.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.