Management Papers

Document Type

Journal Article

Date of this Version

5-1997

Publication Source

International Journal of Research in Marketing

Volume

14

Issue

2

Start Page

163

Last Page

176

DOI

10.1016/S0167-8116(96)00035-3

Abstract

The objective of this study is to estimate the effectiveness of different defense strategies when faced with a new product introduction by a competitor. Using a sample of in cumbentsacross a wide range of industries, we find that faster reactions to the new entrant have a positive impact on the perceived success of the defense strategy. However, the greater the breadth of reaction (number of marketing mix instruments used), the less successful is the defense. The ability of an incumbent to maintain its market position is also significantly affected by industry characteristics and the degree of competitive threat posed by the new product entry.

Copyright/Permission Statement

© 1997. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

retaliation, competitive response, innovative entry, reaction speed

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Date Posted: 19 February 2018

This document has been peer reviewed.