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Management Science Vol. 32 No. 6 1986

Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications

Glen L. Urban1; Theresa Carter2; Steven Gaskin3; Zofia Mucha4

1 Alfred P. Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139 · 2 International Business Machines, Greensboro, North Carolina 27407 · 3 Information Resources Inc., Waltham, Massachusetts 02254 · 4 McKinsey & Co., New York, New York 10022

open access

Abstract

An empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share. Market share is modeled as a log linear function of order of entry, time between entries, advertising, and positioning effectiveness. The coefficients of the entry, advertising, and positioning variables are significant in a regression analysis on an initial sample of 82 brands across 24 categories. These findings are confirmed by predictions on 47 not previously analyzed brands in 12 categories. Managerial implications for pioneers and later entrants are identified.

DOI
10.1287/mnsc.32.6.645
Volume
32
Issue
6
Pages
645-659
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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