Market Share Rewards to Pioneering Brands An Empirical Analysis And Strategic

Cover Market Share Rewards to Pioneering Brands An Empirical Analysis And Strategic
Market Share Rewards to Pioneering Brands An Empirical Analysis And Strategic
Glen L Urban
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1 6 *Note: These values are calculated based on equation 2 with P = 1, ^ nc ' A =1 and L =1 and the parameters in Table 3. Nc nc In our original model (Equation 2), we include price and positioning together in the preference variable (P ). The pooled data allowed further exploration of price effects. In eight categories, approximate price measures were available for each of 39 brands. These were based in each case on small sample audits of retail stores and managerial judements on the relative ...average prices. We fit the model (Equation 2) again, but with an additional variable defined by the log of the price of the n product divided by price of the first product to enter. The value of the coefficient for this price variable was -. 61 and the t statistic -1. 7 (df = 27). This is significant at the 10 percent level. The correlation of the price and preference variable -26- was not great (-. 13) and indicates the price effect may be considered relatively independent of the product positioning measured by preference.

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