Analyzing the effects of a brand introduction on competitive structure using a market share attraction model

Competition in local-service sectors

“…Following Fok and Franses (2004), entry models can broadly be divided into two types of approaches: (i) noncooperative game-theoretic models, and (ii) non-structural empirical models estimated on time-series or panel data. The first set of studies takes a normative viewpoint, and prescribes how firms should respond in an optimal way to later entrants.…”

Does competitive entry structurally change key marketing metrics?

“…While it is well established in (game-) theoretical studies that the equilibrium price is expected to fall with entry (Gruca, Kumar, & Sudharshan, 1992), the empirical investigations of Fok and Franses (2004) could not confirm this hypothesis. Pauwels and Srinivasan (2004), in turn, found a decrease in the equilibrium price in only two out of four categories.…”

“…New entrants may very well create fundamental changes in the marketing mix effectiveness of incumbents (Fok & Franses, 2004). The direction of these changes depends on various factors, such as the type of instrument or brand position.…”

Particle swarm optimization for optimal product line design

“…It is now becoming well-known that in the longer run, optimization algorithms should take into account the retaliatory actions of the incumbent firms, which may launch new products or redesign their existing ones, as a response to the entrance of a new firm to the market. So far, the effects of product introductions on the competitive market structure have been analyzed with the use of attraction models, focusing on marketing instruments (Fok & Franses, 2004) and product price (Rhim & Cooper, 2005). Only two approaches have incorporated competitive reactions using game theory in the conjoint analysis context.…”