Note—On “A Parsimonious Description of the Hendry System”

Abstract

The Hendry market structure and partitioning theory and methodology are explained and contrasted with a strictly empirical approach in this note.

Consumer preference structure analysis

“…The notion of directly and indirectly competitive sets can serve as the basis for simulations of how market positions change as a result of aggressive marketing strategies aimed at direct competitors. While it is beyond the scope of this article to discuss the nature of such simulations, it is worth noting that proprietary marketing science models make such computations feasible (15,27).…”

“…Most journal articles have focused on methods for analyzing switching matrices and creating hierarchies (6,8,13,16,22,23,27). A number have emphasized theories about the nature of brand competition and market dynamics (1,2,15,24,27,28).…”

“…Alternative consumer preference structures suggest different marketing strategies (15,27). The purpose of studying these structures is to develop strategies that are appropriate to market conditions, particularly the nature of consumer needs and the competition to satisfy those needs.…”

“…While preference structure studies have been published for several branded-goods categories such as soft drinks (2,16,23), coffee (8,10), breakfast foods ( l ) , candy (24), facial tissues (27), and financial services (281, no research exists about product hierarchies in direct marketing or, in particular, in the women's apparel catalog market.…”

“…In consumer research, versions of CPSA have a rich history under such names as "Competitive Market Structure Analysis" (8), "Market Structure Analysis" (28), and "Hierarchical Product-Market Structures" (22). Most journal articles have focused on methods for analyzing switching matrices and creating hierarchies (6,8,13,16,22,23,27). A number have emphasized theories about the nature of brand competition and market dynamics (1,2,15,24,27,28).…”