Article ID: | iaor199683 |
Country: | Netherlands |
Volume: | 76 |
Issue: | 2 |
Start Page Number: | 273 |
End Page Number: | 282 |
Publication Date: | Jul 1994 |
Journal: | European Journal of Operational Research |
Authors: | Horsky Dan, Givon Moshe |
Keywords: | markov processes |
This paper deals with a relatively unexamined facet of stochastic brand switching models-their connection to market share models. The authors derive a composite market share model based on aggregation of heterogeneous Markovian type individuals each purchasing a brand from the product class several times during the period of analysis. The characteristics of this composite model are examined and interestingly suggest a Markov type market share model. Moreover, this examination sheds some light on a phenomenon uncovered in econometric studies of market share response to advertising-the slow decay of the lagged market share term as the length of the measurement period is increased.