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Article
Publication date: 1 May 2004

Nobuhiko Terui

Marketshare analysis focuses on the competitive interrelations between products or brands. Marketing activity may affect the performance of a company's own product and that of…

1476

Abstract

Marketshare analysis focuses on the competitive interrelations between products or brands. Marketing activity may affect the performance of a company's own product and that of its competitors not only within a single time horizon but also over several extended periods. Starting from a static marketshare analysis model, the dynamic relationships of market shares between competitive brands are described by multiplicative competitive interaction (MCI) time‐series models, in which the problem of logical consistency for estimated shares is resolved. A Bayesian shrinkage estimator solution is applied to the further problem of model‐induced collinearity in cross‐differential MCI models. Dynamic elasticity is defined and used to measure the delayed and long‐term effects of marketing mix variables on market shares. The dynamic relationships of future market shares are predicted by means of predictive density. Strategic simulations are conducted under several scenarios for marketing planning. It is argued that the new dynamic model proposed here, applied to daily national or store tracking data, provides useful insights into dynamic competitive relationships in the marketplace, to the benefit of corporate planners, marketing directors, brand managers and retail strategists.

Details

Marketing Intelligence & Planning, vol. 22 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 27 May 2014

Chelsea Liu, Graeme Gould and Barry Burgan

The Chinese capital markets are divided into two segments comprising of A-shares (traded by domestic investors) and B-shares (traded by foreign investors). Firms issuing A-shares

1006

Abstract

Purpose

The Chinese capital markets are divided into two segments comprising of A-shares (traded by domestic investors) and B-shares (traded by foreign investors). Firms issuing A-shares are required to produce accounting reports under the Chinese Accounting Standards (CAS) and firms issuing B-shares are required to report under the International Accounting Standards (IAS). The purpose of this paper is to investigate the comparative value-relevance of accounting information in the Chinese capital markets, in particular whether the value-relevance associated IAS exceeds that of CAS.

Design/methodology/approach

This study undertakes a capital market research approach. Two statistical models are employed to test the value-relevance of competing accounting information on share prices: the Price Model and the Return Model. This study takes advantage of the parallel reporting frameworks governing the A-share and B-share markets buy using the same firms which issue both A-shares and B-shares.

Findings

The analysis supporting the study demonstrates that both CAS and IAS information is value relevant to investors in the Chinese capital markets but that IAS provide more useful information. Additionally it is observed that reconciliation variables (representing the discrepancy between IAS- and CAS-based accounting figures) are not significant in explaining market valuation or returns on stock.

Research limitations/implications

This study provides evidence of value-relevance of accounting reports on the Chinese capital markets for the period of 1999-2005. The period under investigation captures the significant development in China's accounting regulations which took place in 1998 and 2001. The recent shift in accounting regulations in China from CAS to IAS is expected to improve the dissemination of financial information by publicly listed Chinese firms.

Practical implications

This study investigates the reporting requirements on the Chinese capital markets during a period in which accounting reporting requirements underwent a significant change as part of the internationalization of accounting standards. Both A- and B-share markets were investigated simultaneously in order to provide an objective analysis and avoid sampling selection bias present in other studies.

Social implications

The recent shift in accounting regulations in China from CAS to IAS is expected to improve the dissemination of financial information by publicly listed Chinese firms.

Originality/value

This paper extends previous research on value-relevance of accounting reports in the Chinese capital markets by capturing the period in which the reporting requirements had experienced significant change. This paper also takes advantage of the dual reporting framework in order to mitigate potential sampling bias present in previous studies and employs a reconciliation variables not previously used.

Details

International Journal of Managerial Finance, vol. 10 no. 3
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 23 March 2023

Yong Tan, Huini Zhou, Peng Wu and Liling Huang

As the quality of the environment decreases, enterprises and consumers' awareness of environmental protection is constantly improving. More and more enterprises begin to increase…

Abstract

Purpose

As the quality of the environment decreases, enterprises and consumers' awareness of environmental protection is constantly improving. More and more enterprises begin to increase their investment in carbon emission reduction and attract environmentally friendly consumers to buy low-carbon products through advertising. The purpose of this paper is to utilize a realistic differential game model to provide dynamic carbon emission reduction strategies, advertising strategies and cooperation methods for complex supply chain members from a long-term perspective.

Design/methodology/approach

This paper uses the extend Vidale-Wolfe model (V-W model) to discuss the dynamic joint emission reduction strategy in the supply chain.

Findings

(1) When consumers' awareness of environmental protection increases, on the whole, carbon emission reduction and profit of products show an upward trend. (2) From a long-term perspective, the manufacturer's advertising subsidy to one of the retailers is the best choice. If the strength of the two retailers is unbalanced, the manufacturer will choose to cooperate with the dominant retailer. (3) Advertising, as a marketing means for retailers to promote low-carbon products, can alleviate the adverse effects of prisoner's dilemma in a semi-cooperative state, but it cannot achieve the Pareto optimization result.

Research limitations/implications

This paper focuses on the analysis of the situation that when the manufacturer is the leader and thinks that consumers are active advocates of low-carbon products.

Originality/value

The results of this paper can provide theoretical basis for the joint emission strategy of supply chain members in low-carbon environment.

Details

Industrial Management & Data Systems, vol. 123 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 12 September 2017

Mouna Sebri and Georges Zaccour

The starting conjecture is that the market share of a brand in one category benefits from its performance in another category, and vice versa. The purpose of this paper is to…

Abstract

Purpose

The starting conjecture is that the market share of a brand in one category benefits from its performance in another category, and vice versa. The purpose of this paper is to assess the umbrella-branding spillovers by investigating the presence of synergy effect between categories when a retailer and/or a manufacturer decide to adopt/use the same name for his products. In fact, besides the cross-category dependency due to substitutability or complementarity, products can also be linked through their brand name in presence of an umbrella-branding strategy.

Design/methodology/approach

The authors propose an extended market-share model to account for the spillover effect at the brand level. The spillover is modeled to be generated by the brand's performance and not specific to marketing instruments, as done in the literature. They adopt a multiplicative competitive interaction (MCI) form for the attraction function. Based on aggregated data of two complementary oral-hygiene categories, the authors estimate the umbrella-branding spillover parameters using the iterate three-stage least squares (I3SLS) method. They contrast the results in three scenarios: no spillover, brand-constant spillover and brand-specific spillover.

Findings

The ensuing results indicate that umbrella-branding spillover is (i) significant and positive, i.e. the brand performance is boosted by its performance in a related category, through the so-called brand-attraction multiplier; (ii) asymmetric, i.e. the spillover is not equal in both directions; and associated to the market strength of each competing brand; (iii) variable across brands. The results show that not accounting for umbrella-branding spillover leads to misestimating the parameters and has a considerable impact on price-elasticities computation.

Research limitations/implications

Because store brands and some national brands exist in many categories, and thus because consumers make inferences when they face a large number of brands in different categories, spillover effects cannot be labelled as simply complementary or substitution-related. Future research may provide insight about the spillover phenomenon in a more general framework that would consider the spillover occurring between more than two categories.

Practical implications

Providing accurate assessment for umbrella-branding spillovers governing the competing brands, the results offer a relevant and straightforward method for decision makers to precisely assess the impact of a marketing effort in one category on the retailer's global performance. The findings provide better forecasts of market response in terms of sales and profit, within a cross-category perspective.

Originality/value

This study develops and estimates a market-share model with the aim of measuring brand-category spillover effects. The literature dealt with cross-category interactions in terms of substitutability or complementarity between the products offered in the two or more categories under investigation. Here, the focal point (and contribution) of the authors is the link at the brand level. Indeed, the authors only require that a minimum of one brand is offered in at least two of the categories of interest. Further, the spillover considered is not specific to marketing instruments, but is generated by the brand performance (attraction or market share), which is the result of both the firms marketing-mix choice and competitors marketing policies.

Details

European Journal of Marketing, vol. 51 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 April 2000

Nobuhiko Terui

In market share analysis, it is fully recognized that we have often inadmissibly predicted market share, which means that some of predictors take the values outside the range [0…

2132

Abstract

In market share analysis, it is fully recognized that we have often inadmissibly predicted market share, which means that some of predictors take the values outside the range [0, 1] and the total sum of predicted shares is not always one, so‐called “logical inconsistency”. Based on the Bayesian VAR model, proposes a dynamic market share model with logical consistency. The proposed method makes it possible to forecast not only the values of market share themselves, but also various dynamic market share relations across different brands or companies. The daily scanner data from the Nikkei POS information system are analyzed by the proposed method.

Details

Marketing Intelligence & Planning, vol. 18 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 13 February 2009

Natalia Rubio and María Jesús Yagüe

The purpose of this paper is to understand the intra‐ and inter‐category differences of the store brand market share. Strategic, structural and performance factors are considered…

1725

Abstract

Purpose

The purpose of this paper is to understand the intra‐ and inter‐category differences of the store brand market share. Strategic, structural and performance factors are considered to be explanatory.

Design/methodology/approach

The paper proposes four possible alternative fixed‐effects panel models for the data. The empirical analysis is performed on the Spanish consumer goods market in 50 traditional categories during the period from 1996 to 2000, when these brands consolidated their position as the best choices on the shelves.

Findings

The paper obtains consistent results for the four models proposed. The analysis of these reveal which strategic, structural and performance factors influence the store brand market share and how they influence it at intra‐ and inter‐category levels.

Research limitations/implication

The main limitations of this research derive from the conditioning factors of the information. Some potential explanatory variables could not be considered in the models or could only be considered to explain the inter‐category differences.

Practical implications

The results obtained have interesting implications for manufacturers and retailers in the management of the brands in their product portfolio and in the management of their relationships in the distribution channel.

Originality/value

This research provides integrated modelling of the store brand market share by jointly considering cross‐sectional and time effects using the panel methodology and proves that considering time avoids some counter‐intuitive results of cross‐sectional research.

Details

European Journal of Marketing, vol. 43 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 November 1992

Bruce Curry, Luiz Moutinho and Fiona Davies

Originates from a research project which aims to investigate thepotential for “intelligent” computer models asdecision‐support tools, with particular emphasis on strategic…

79

Abstract

Originates from a research project which aims to investigate the potential for “intelligent” computer models as decision‐support tools, with particular emphasis on strategic analysis. Describes field work carried out with the intention of validating the working models which have been developed. The fieldwork produced a number of useful suggestions whereby the particular model could be enhanced, as well as demonstrating the potential for applying intelligent models in practice.

Details

Marketing Intelligence & Planning, vol. 10 no. 11
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 5 September 2016

Avichai Shuv-Ami

The current study conceptualizes and empirically tests a new model of market brand equity (MBE). This model, that not just provides an understanding of customer mindsets toward…

2363

Abstract

Purpose

The current study conceptualizes and empirically tests a new model of market brand equity (MBE). This model, that not just provides an understanding of customer mindsets toward the brand, as most empirical models do, but also measures the marketing benefits of such mindsets. The present study offers two models. One is comprehensive and theoretical while the other is an empirical model. The empirical model is a practical model drawn from the more comprehensive and conceptualized model. The hypothesized empirical MBE model is tested using structural equation modeling (SEM) analysis followed by a formula that offers a method to calculate and rank competitive brands in the market place. The purpose of this paper is to conclude with a discussion of the implications of the model.

Design/methodology/approach

The findings of the present research are based on a representative sample of 964 cellular phone users selected randomly from an Israeli internet panel were analyzed. The questions related to the dimensions of the brand equity needed a more intimate relationship of the customers with the brand. Thus, those questions were asked only with regard to the brand that the respondents were mainly using. These questions were concerned with brand knowledge, brand commitment and brand overall attitude. The other questions that the respondents answered were about three other brands on the market. All dimensions, except purchase barriers, were measured on a ten-point scale.

Findings

SEM analysis was used to test the hypothesized MBE model as well as alternative models. The results, which supported the hypothesized model, indicated that knowledge has a strong positive effect on image, personality and attitude. Image has a positive effect on attitude, but that of personality was insignificant. Attitude, image and personality have a positive effect on commitment. Commitment affects recommendation strongly and positively. Both commitment and recommendation have a positive and significant effect on potential market share.

Research limitations/implications

The limitations of the current research are that it was not measured over time and that only one product category has been tested. In addition to dealing with these limitations, future research may also add additional marketing performance outcome variables such as the ability to obtain premium prices and to exercise brand power in relation to channels of distribution.

Practical implications

The model presented in this paper provides the marketer with the ability to compare, from a competitive perspective, the relative average in the market place of customer mindset, customer performance and marketing performance. The analysis also reveals whether to invest in strengthening customer mindset or in capturing a greater market share. When the brand leader is far from its followers, an additional analysis may be required and it may be necessary to increase the sensitivity of the analysis by examining separately (without the leading brand) the relative differences between the follower brands. Moreover, the measurement questions should be adjusted to fit different product categories. For example, in testing the MBE in the service industry, “product performance,” which is a component of brand commitment, should be measured by the “quality of service.” But the way of using the model will not change. Another example for future research may be found in sport marketing, such as among football or basketball clubs. In such instances, performance – winning or losing – or even the quality of the players on the team may be considered. It is suggested here that the MBE’s measurement of fast-moving products vs slow moving ones. However, in such cases the model would probably show a significant difference in involvement with the brands of fast-moving products displaying much lower customers’ involvement then brands of slow-moving products.

Originality/value

The empirical model suggested in this study is a new and practical market-based brand equity that uses commitment as the main construct, building brand equity to represent the performance outcome of the customer mindset used in the models noted above. The current study also offers a new practical and useful formula for calculating and ranking MBE.

Details

EuroMed Journal of Business, vol. 11 no. 3
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 28 April 2023

Lingli Shu, Xiaoyan Li and Xuedong Liang

For nanostores, striving to become the community group-buying leader is gaining prominence. This paper aims to construct Hotelling linear models to investigate whether nanostores…

Abstract

Purpose

For nanostores, striving to become the community group-buying leader is gaining prominence. This paper aims to construct Hotelling linear models to investigate whether nanostores should be registered as leaders and their decisions in a competitive environment.

Design/methodology/approach

This paper constructs three Hotelling linear models: neither nanostore registers as community leader, only one nanostore registers as community leader and both nanostores register as community leader. The competitive operation strategies of two general nanostores under three scenarios are solved.

Findings

The study finds that nanostores without a cost advantage may benefit from being the first leader. The nanostore's preferred decisions depend on the investment cost parameters of its own and competitors which may lead to market share competition. Furthermore, consumers' sensitivity to community group-buying service has a negative effect on nanostores' profit.

Originality/value

The study is one of the few to consider the competition between community leaders. Besides, the study considers that the utilities functions of consumers are concurrently impacted by the service decisions, along with the price in different nanostores. It can provide nanostores useful implications in the dynamic industry.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 23 October 2009

Kari Heimonen and Outi Uusitalo

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly…

5607

Abstract

Purpose

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly competitive oligopolistic Finnish beer market in which price competition among the homogeneous larger‐type beer brands is not allowed during the period of the study.

Design/methodology/approach

Competition is modelled using the Lanchester model. The impacts of advertising on market shares are estimated using the impulse‐response functions from vector autoregression, and the full information maximum likelihood and advertising elasticities.

Findings

Some new insights into beer market dynamics are obtained. First, the impacts of advertising are not similar across brands. Second, overspills of advertising impacts across brands are detected. Third, the reactions to competitors' advertising attacks are mild.

Originality/value

The paper utilizes four‐week brand‐level data on the market shares of the leading beer brands in Finland and the brands' advertising expenditure. During the period of the data, price competition is not allowed, which creates a unique opportunity to study the impacts of advertising on the market shares of brands.

Details

Marketing Intelligence & Planning, vol. 27 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

1 – 10 of over 160000