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The effects of imbalanced competition on demonstration strategies

Amir Heiman and Chezy Ofir

International Journal of Research in Marketing, 2010, vol. 27, issue 2, 175-187

Abstract: This paper analyzes the effect of competition on product demonstration decisions. Pre-purchase product demonstration enables marketers to differentiate products that are ex-post differentiated but are judged according to perceived fit, rather than actual fit, due to pre-purchase consumer uncertainty. Imbalanced competition accompanied by fit uncertainty motivates the follower to offer demonstrations to avoid a price war. This paper explores the conditions that lead the leader to retaliate. In addition to effects on quantity, competition may increase the quality of demonstrations offered by the leader.

Keywords: Imbalanced doupolistic competition; Demonstration; Differentiation; Test-drive; Non-price competition (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:27:y:2010:i:2:p:175-187

DOI: 10.1016/j.ijresmar.2010.02.001

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