Ew. Foekens et al., HIERARCHICAL VERSUS OTHER MARKET SHARE MODELS FOR MARKETS WITH MANY ITEMS, International journal of research in marketing, 14(4), 1997, pp. 359-378
Understanding the competition between products constitutes an importan
t problem area in marketing. The existence of many items in a product
category requires that researchers consider placing restrictions on th
e nature of competition in consumer response models. However, little i
s known about the relative appropriateness of alternative model specif
ications that differ in constraints. We propose hierarchical models, a
nd we compare different possible hierarchies against each other and ag
ainst recently developed nonhierarchical specifications. We discuss ho
w the alternative specifications accommodate asymmetry in competition,
We also show analytical linkages between the different models, and we
provide a preliminary empirical comparison of these models based on a
ggregate (market-level) scanner data. (C) 1997 Elsevier Science B.V.