Marketing mix reactions to entry

Marketing mix reactions to entry

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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:
Keywords: economics, statistics: regression, statistics: multivariate
Abstract:

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.

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