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Identifying Competition Structure from Cross Price Elasticity Matrix
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- Authors
- Issue Date
- 2009-08
- Publisher
- 서울대학교 경영정보연구소
- Citation
- Journal of information and operations management, Vol.19 No.1/2, pp. 131-137
- Abstract
- Analysis of competition structure among products in a product category has been
an important issue in the marketing area since the accurate assessment of market
structure is critical in developing competitive advantages of a firm. The meaningful
characterization of competition structure among products in a market helps firms
evaluate the effectiveness of marketing efforts and identify new opportunities. I
develop a simple procedure for obtaining brand positions from aggregate sales data
by imposing some restrictions on cross price elasticity matrix. The proposed procedure
provides useful information on vulnerability and clout structure among products in
a market and the cross price elasticity matrix is the only input for obtaining such
information. So the input requirement in implementing the proposed model is relatively
minimal since the cross price elasticity information is easily obtained from standard
syndicated data sets.
- Language
- English
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