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Title: The emergence of market structure in new repeat-purchase categories : the interplay of market share and retailer distribution
Authors: Bronnenberg, Bart J.
Mahajan, Vijay
Vanhonacker, Wilfried R.
Keywords: Studies
Statistical analysis
Retailing industry
Distribution planning
Market shares
Brand equity
Category management
Issue Date: Feb-2000
Citation: Journal of marketing research, v. 37, no. 1, Feb. 2000, p. 16-31
Abstract: The authors of a study look at brand-share dynamics among competing brands in new repeat-purchase categories. In such new categories, market shares are strongly affected by retailer distribution decisions. Because a retailer that considers a brand for distribution can take into account the prior performance of that brand with other retailers, the success of a manufacturer in obtaining distribution can depend positively on its brand's market share to date. This creates positive feedback between a brand's market share and its distribution over the growth stage of the category. Temporary positive feedback, along with the way manufacturers influence their brand's market share and distribution, is hypothesized to drive the emergence of the market structure.
Rights: Reprinted with permission from JMR, Journal of Marketing Research, published by the American Marketing Association, Bart J. Bronnenberg, Vijay Mahajan, Wilfried R. Vanhonacker, Feb. 2000, v.37, no. 1, p. 16-31.
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