Market share modeling within a switching regression framework

K. Lau, A. Kagan and G. V. Post

Omega, 1997, vol. 25, issue 3, 345-353

Abstract: Marketers often need to analyze and predict market share for a brand or a firm. These predictions can be based on product attributes and marketing variables. Two analytical techniques have been shown to be better at this task than other models: Multinomial Logit (MNL) and the Multiplicative Competitive Interaction (MCI) model. This study shows that the MNL and MCI models can be derived from a common foundation. It also extends the MNL model by integrating it with switching regression techniques. This new model, switching multinomial logit (SMNL), provides several theoretical advantages over both the basic MCI and MNL models. With a sample data set, the SMNL model outperforms the simple MNL model with a 10% reduction in errors.

Keywords: switching; regression; market; share; Multinominal; Logit; Model; Multiplicative; Competitive; Model (search for similar items in EconPapers)
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305-0483(96)00054-0
Full text for ScienceDirect subscribers only

Related works:
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:jomega:v:25:y:1997:i:3:p:345-353

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().