IDENTIFYING DYNAMIC BRAND COMPETITION ON ONLINE MARKETPLACES THROUGH CONSUMERS’ CONSIDERATION SETS

48 Pages Posted: 1 Jul 2020 Last revised: 9 Jan 2021

See all articles by Meihua Zuo

Meihua Zuo

Guangdong University of Technology

Spyros Angelopoulos

Tilburg University

Carol Xiaojuan Ou

Tilburg University

Hongwei Liu

Guangdong University of Technology

Zhouyang Liang

Guangdong University of Technology

Date Written: April 22, 2020

Abstract

Whilst brands on online marketplaces constantly face the challenge of identifying the market structure and analyzing the competitive power, the topic of dynamic brand competition has received scant attention. To address this lacuna, we model the competitive power of brands on online marketplaces through consumers’ consideration sets. Grounded on network theory, we use a large empirical dataset from one of the biggest online marketplaces in China. We explore the relation between network position and competitive power of brands through the local and global centrality and closure, and depict the redistribution of market-share of related products after adjusting the length of the production line. We show that on the context of online marketplaces the span of structural holes of a brand negatively influences its competitive power, while betweenness and degree centrality demonstrate a positive impact. We further show that intra-brand relations have a significantly greater impact on competitive power compared to the inter-brands ones, while intra-brand relations represent the main reason for the fluctuation of competitive power over time. Our study contributes to the literature on dynamic brand competition on online marketplaces, while we also draw an agenda for future research on this topic.

Keywords: Online marketplaces, dynamic competition analysis, clickstream data, spatial auto-regressive model, network analysis

Suggested Citation

Zuo, Meihua and Angelopoulos, Spyros and Ou, Carol Xiaojuan and Liu, Hongwei and Liang, Zhouyang, IDENTIFYING DYNAMIC BRAND COMPETITION ON ONLINE MARKETPLACES THROUGH CONSUMERS’ CONSIDERATION SETS (April 22, 2020). Available at SSRN: https://ssrn.com/abstract=3598889 or http://dx.doi.org/10.2139/ssrn.3598889

Meihua Zuo

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

Spyros Angelopoulos (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Carol Xiaojuan Ou

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Hongwei Liu

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

Zhouyang Liang

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

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