CONTEXT EFFECTS, NEW BRAND ENTRY, AND CONSIDERATION SETS

The authors examine how new brand entries affect consumers' considerat ion sets. A within-subject longitudinal experiment examines several en try positions into existing markets. The results suggest that new bran d entries produce changes in consideration sets toward dominating, com promise, and assimilated brands, away from extreme brands in two-brand markets, and toward dominating and away from extreme brands in eight- brand markets. These results are confirmed by a second experiment that utilizes a between-subject design and markets with six existing brand s.