Journal article
A Relationship between Market Share Elasticities and Brand Switching Probabilities
Journal of marketing research, Vol.35(1), pp.99-113
02/01/1998
DOI: 10.2307/3151933
Abstract
The authors derive a theoretical relationship between the aggregate market share elasticity matrix and the aggregate brand switching matrix on the basis of a logit model of heterogeneous consumers choosing among competing brands in a product class. Aggregate cross-elasticities are shown to be proportional (through a single scaling constant) to their corresponding aggregate row-conditional brand switching probabilities. Aggregate own-elasticities are shown to be proportional (through the negative of the same scaling constant) to one minus their corresponding aggregate row-conditional repeat purchase probabilities. An empirical analysis conducted on household scanner panel data in the liquid laundry detergent category shows that the theoretical correspondence holds as a very good approximation. An illustrative use of the relationship in estimating aggregate (store-level) models of market share indicates that the relationship helps improve predictive validity in a holdout period.
Details
- Title: Subtitle
- A Relationship between Market Share Elasticities and Brand Switching Probabilities
- Creators
- Randolph E. BucklinGary J. RussellV. Srinivasan
- Resource Type
- Journal article
- Publication Details
- Journal of marketing research, Vol.35(1), pp.99-113
- DOI
- 10.2307/3151933
- ISSN
- 0022-2437
- eISSN
- 1547-7193
- Language
- English
- Date published
- 02/01/1998
- Academic Unit
- Marketing
- Record Identifier
- 9984380432102771
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