Date of this Version
International Journal of Research in Marketing
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.
© 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/
retaliation, competitive response, innovative entry, reaction speed
Gatignon, H., Robertson, T. S., & Fein, A. J. (1997). Incumbent Defense Strategies Against New Product Entry. International Journal of Research in Marketing, 14 (2), 163-176. http://dx.doi.org/10.1016/S0167-8116(96)00035-3
Date Posted: 19 February 2018
This document has been peer reviewed.