Disaggregate Market Share Response Models

International Journal of Research in Marketing, Vol. 19, No. 3, pp. 253-266, 2002

14 Pages Posted: 6 Apr 2010

See all articles by Alexandru M. Degeratu

Alexandru M. Degeratu

McKinsey & Co. Inc.

Wayne S. DeSarbo

Pennsylvania State University

M. Kim Saxton

Indiana University - Kelley School of Business - Department of Marketing

Michael Ahearne

University of Houston - C.T. Bauer College of Business

Date Written: 2002

Abstract

Traditional market share response (multiplicative competitive interaction or MCI) models have been gainfully employed in marketing research practice as an effective methodology for estimating competitive effects. Legions of books and articles on MCI models and their use have been published documenting the successful formulation and implementation of this class of models. In this spirit, this paper proposes a generalization of this class of models to a latent structure framework incorporating within-segment random brand effects. We apply and contrast this new formulation against the traditional aggregate MCI model formulations in an application involving physician prescription shares for three major brands of central nervous system (CNS) ethical pharmaceuticals (known as CNS drugs). We conclude the manuscript with managerial implications and suggestions for future research.

Keywords: Market share models, Finite mixtures, Random effects, Prescription drugs, Maximum likelihood

JEL Classification: M30

Suggested Citation

Degeratu, Alexandru M. and DeSarbo, Wayne S. and Saxton, M. Kim and Ahearne, Michael, Disaggregate Market Share Response Models (2002). International Journal of Research in Marketing, Vol. 19, No. 3, pp. 253-266, 2002 , Available at SSRN: https://ssrn.com/abstract=1584807 or http://dx.doi.org/10.2139/ssrn.1584807

Alexandru M. Degeratu

McKinsey & Co. Inc. ( email )

55 East 52nd Street
21st Floor
New York, NY 10022
United States

Wayne S. DeSarbo

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

M. Kim Saxton

Indiana University - Kelley School of Business - Department of Marketing ( email )

Kelley School of Business
Bloomington, IN 47405
United States

Michael Ahearne (Contact Author)

University of Houston - C.T. Bauer College of Business ( email )

334 Melcher Hall
Houston, TX 77204-6021
United States
713-743-4155 (Phone)
713-743-4572 (Fax)

HOME PAGE: http://www.bauer.uh.edu/Directory/profile.asp?firstname=Michael&lastname=Ahearne

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