Modeling Competitive Responsiveness

  • Peter S.H. Leeflang
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 121)

Competitive Responsiveness

1The study of competition and competitive responsiveness has a long tradition, involving a variety of models developed and applied in many different situations. We give a brief survey of specific applications and methodologies used to model competitive responsiveness and summarize findings about competitive reaction effects and factors that may explain competitive reactions. In addition, we attend to the use of competitive response models for normative decision making. For all these purposes, we use an evolutionary model building scheme that demonstrates the unique development of different models and methods.

A brand’s or firm’s success depends on the degree to which its managers’ decisions satisfy selected consumers’ needs and preferences better than competing brands/firms do (Day and Reibstein, 1997). Thus, firms’ actions andreactions to competitive actions strongly influence their performance. In modern marketing, much attention has been devoted to...


Market Share Demand Function Reaction Function Competitive Reaction Advertising Expenditure 
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© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of GroningenGroningenThe Netherlands

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