Abstract

An empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share. Market share is modeled as a log linear function of order of entry, time between entries, advertising, and positioning effectiveness. The coefficients of the entry, advertising, and positioning variables are significant in a regression analysis on an initial sample of 82 brands across 24 categories. These findings are confirmed by predictions on 47 not previously analyzed brands in 12 categories. Managerial implications for pioneers and later entrants are identified.

Keywords

Market shareOrder (exchange)Sample (material)MarketingBusinessAdvertisingRegression analysisProduct (mathematics)Empirical researchMarket share analysisProduct categoryEconometricsEconomicsStatisticsMarket microstructureMathematics

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Publication Info

Year
1986
Type
article
Volume
32
Issue
6
Pages
645-659
Citations
586
Access
Closed

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Glen L. Urban, Theresa Carter, Steven P. Gaskin et al. (1986). Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications. Management Science , 32 (6) , 645-659. https://doi.org/10.1287/mnsc.32.6.645

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DOI
10.1287/mnsc.32.6.645