Management Papers
Document Type
Journal Article
Date of this Version
8-1995
Publication Source
The Review of Economics and Statistics
Volume
77
Issue
3
Start Page
522
Last Page
534
DOI
10.2307/2109912
Abstract
In many advertising-intensive industries one observes market share persistence, i.e., firms maintaining lead market shares over long periods of time. I hypothesize that firms that have the largest stock of well-established brands, a stock that I term brand capital, are most likely to introduce new products in response to new market information about consumer preferences. Firms with less brand capital delay their introductions until the uncertainty concerning the market size is reduced. I present empirical support in a study of new product introductions in the U.S. beverage industry.
Recommended Citation
Thomas, L. A. (1995). Brand Capital and Incumbent Firms' Positions in Evolving Markets. The Review of Economics and Statistics, 77 (3), 522-534. http://dx.doi.org/10.2307/2109912
Date Posted: 27 November 2017
This document has been peer reviewed.