Impact of Consumer Preference Formation on Marketing Objectives and Competitive Second Mover Strategies  

Oleh:

Carpenter, Gregory S. ; Nakamoto, Kent

Jenis: Article from Bulletin/Magazine
Dalam koleksi: JOURNAL OF CONSUMER PSYCHOLOGY vol. 5 no. 4 (1996), page 325-358.
Topik: competitive markets; consumer preference formation; marketing objectives; competitive second mover; strategies

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ42.3 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

In this article, we consider the impact of the dynamics of consumer preference formation on the optimal competitive strategy for a second brand entering a market dominated by a pioneer. In particular, our analysis explicitly incorporates the perceptual dominance and prototypicality of a succesfull pioneer into models of consumer and managerial decision making. Based on these models, we derive optimal entry strategies for a second mover that competes with the pioneer in brand positioning, advertising and price. Analyses using classical models of decision making, which include prototypically, show that optimal second mover strategies engage a process of competition that leads to falling prices and profits until further entry is unprofitbale. However, the empirical evidence shows that pioneers enjoy persistent competitive advantages. Our analysis, incorporating the prototypically of the pioneer, shows that it is optimal for the second mover to adopt a niche strategy (with a maximally differentiated position, high price, low advertisin outlay) that is consistent with the persistent pioneering advantage. Our results suggest an important role for brand prototypically in the design of competitive strategies and for the process of competition between brands.

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