Econometric Analysis of the Market Share Attraction Model

35 Pages Posted: 26 Aug 2006

See all articles by D. Fok

D. Fok

Econometric Institute - Erasmus University Rotterdam; Erasmus Research Institute of Management (ERIM); Tinbergen Institute Rotterdam

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Richard Paap

Erasmus University Rotterdam (EUR) - Department of Econometrics; Tinbergen Institute; Erasmus Research Institute of Management (ERIM)

Date Written: February 2001 5,

Abstract

Market share attraction models are useful tools for analyzing competitive structures. The models can be used to infer cross-effects of marketing-mix variables, but also the own effects can be adequately estimated while conditioning on competitive reactions. Important features of attraction models are that they incorporate that market shares sum to unity and that the market shares of individual brands are in between 0 and 1. Next to analyzing competitive structures, attraction models are also often considered for forecasting market shares. The econometric analysis of the market share attraction model has not received much attention. Topics as specification, diagnostics, estimation and forecasting have not been thoroughly discussed in the academic marketing literature. In this chapter we go through a range of these topics, and, along the lines, we indicate that there are ample opportunities to improve upon present-day practice.

Keywords: Market share attraction model, model selection, estimation, diagnostics, forecasting

JEL Classification: M, M31, C44, C52

Suggested Citation

Fok, Dennis and Franses, Philip Hans and Paap, Richard, Econometric Analysis of the Market Share Attraction Model (February 2001 5,). ERIM Report Series Reference No. ERS-2001-25-MKT. Available at SSRN: https://ssrn.com/abstract=370883

Dennis Fok (Contact Author)

Econometric Institute - Erasmus University Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1333 (Phone)
+31 10 408 9162 (Fax)

Tinbergen Institute Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

Richard Paap

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Tinbergen Institute ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
1,020
Abstract Views
4,323
rank
21,514
PlumX Metrics