Investigating the effects of a line extension or new brand introduction on market structure
- Pradeep K. Chintagunta
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Market structure has been characterized by the locations of brands in the perceptual space of households (perceptual map) and the importance weights associated with the attributes of this map. It is hypothesized that a line extension or a new brand introduced into this market could potentially affect the brand locations or the importance weights. We show how a simple extension of a recent approach to market structure analysis enables us to empirically identify which, if any, of these two aspects of market structure is affected by the line extension or new brand. An empirical application to the detergent product market is provided.
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- Investigating the effects of a line extension or new brand introduction on market structure
Volume 7, Issue 4 , pp 319-328
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- market structure
- probit model
- line extensions
- Industry Sectors
- Author Affiliations
- 1. University of Chicago, 1101 East 58th Street, 60637, Chicago, IL, USA