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Specifying competitive effects in diffusion models: an empirical analysis

Author: Parker, Philip M. ; Gatignon, HubertINSEAD Area: Marketing Series: Working Paper ; 91/62/MKT Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 31 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This research aims to provide a systematic analysis of alternative specifications of brand-level first purchase diffusion models, and to assess empirically within a product category the relative success of these models in explaining trial dynamic. In particular, this analysis addresses the following issues for a new and growing category: (1) the role of brand-specific versus category-level (competitive) effects across brands, (2) the role of both price and advertising on brand-level trial dynamics, (3) the existence of static versus dynamic price and advertising elasticities, (4) the response of brand trials to absolute versus relative measures of marketing mix activity, (5) the relative ability of various functional forms (e.g. separable versus non separable) in explaining brand-level trial dynamics in a new category, and (6) whether a common functional form, or hypothesized diffusion process can be imposed on all new brands entering into a new category
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This research aims to provide a systematic analysis of alternative specifications of brand-level first purchase diffusion models, and to assess empirically within a product category the relative success of these models in explaining trial dynamic. In particular, this analysis addresses the following issues for a new and growing category: (1) the role of brand-specific versus category-level (competitive) effects across brands, (2) the role of both price and advertising on brand-level trial dynamics, (3) the existence of static versus dynamic price and advertising elasticities, (4) the response of brand trials to absolute versus relative measures of marketing mix activity, (5) the relative ability of various functional forms (e.g. separable versus non separable) in explaining brand-level trial dynamics in a new category, and (6) whether a common functional form, or hypothesized diffusion process can be imposed on all new brands entering into a new category

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