Article ID: | iaor1988951 |
Country: | United States |
Volume: | 7 |
Issue: | 4 |
Start Page Number: | 368 |
End Page Number: | 385 |
Publication Date: | Sep 1988 |
Journal: | Marketing Science |
Authors: | Robinson William T. |
Keywords: | economics, statistics: regression, statistics: multivariate |
Initial product, distribution, marketing expenditure, and price reactions by incumbents are examined for 115 entrants into oligopolistic markets. The most common reaction pattern is either no reaction or only a single reaction. It is very unusual for entrants to face reactions across the entire marketing mix. Reactions in the first two years after entry are explained as a function of the entrant’s strategy, incumbent characteristics, and industry characteristics. The explanation provides insights into why marketing mix reactions to entry are often limited.