Abstract
Most brand managers believe that a brand that has more products should have a higher brand share because it offers more options to customers. We utilize the underlying structure of the products (within a brand) to develop three measures of brand width: the number of stock keeping units (SKUs), the number of distinct feature levels, and the number of distinct products. To examine the impact of brand width on brand share, we develop a logit model and estimate the sensitivities of brand share to our brand width measures using panel data of eight food product categories. Our logit model suggests that the brand width measures provide explanatory and predictive power. In addition, our latent-class analysis implies that different segments have different (brand choice) responses to different measures of brand width. We also use the estimated model to simulate the impact of stock-out and delayed new product introduction on brand share. Our simulation results suggest: (1) stock-out will lower the brand share in a long run and its impact is more severe when the stock-out duration lengthens; and (2) delayed new product introduction will lower the brand share initially but has minimal impact on the brand share in a long run.
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Chong, JK., Ho, TH., Tang, C.S. (1998). Product Structure, Brand Width and Brand Share. In: Ho, TH., Tang, C.S. (eds) Product Variety Management. International Series in Operations Research & Management Science, vol 10. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5579-7_3
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DOI: https://doi.org/10.1007/978-1-4615-5579-7_3
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