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Order of entry as a moderator of the effect of the marketing mix on market share

Author: Bowman, D. ; Gatignon, HubertINSEAD Area: Marketing Series: Working Paper ; 95/26/MKT Publisher: Fontainebleau : INSEAD, 1995.Language: EnglishDescription: 37 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Order of entry has been demonstrated to have a significant effect on market share. A number of explanations for this effect has been suggested in the marketing and strategy litteratures. In this study, we investigate the influence of order of entry into a market on the effectiveness of a firm's marketing mix decisions. We test for asymmetries in the market response of early entrants versus late entrants using data from two durables (automotive) and three nondurable categories. A market share attraction model is developed where the parameters vary as a function of order of entry. Results show that asymetries in the effectiveness of a brand's marketing mix variables are an essential source of order-of-entry effects
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Order of entry has been demonstrated to have a significant effect on market share. A number of explanations for this effect has been suggested in the marketing and strategy litteratures. In this study, we investigate the influence of order of entry into a market on the effectiveness of a firm's marketing mix decisions. We test for asymmetries in the market response of early entrants versus late entrants using data from two durables (automotive) and three nondurable categories. A market share attraction model is developed where the parameters vary as a function of order of entry. Results show that asymetries in the effectiveness of a brand's marketing mix variables are an essential source of order-of-entry effects

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