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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167811610000248
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Effects of Imbalanced Competition on Demonstration Strategies (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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

Access Statistics for this article

International Journal of Research in Marketing is currently edited by Roland Rust

More articles in International Journal of Research in Marketing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().