Lg. Cooper et al., COMPETITIVE-COMPONENT ANALYSIS - A NEW APPROACH TO CALIBRATING ASYMMETRIC MARKET-SHARE MODELS, Journal of marketing research, 33(2), 1996, pp. 224-238
Managers are unlikely to keep current with advanced developments in ma
rket-response analysis, and technical analysts often lack the marketpl
ace knowledge of the many product categories they must track through s
yndicated data; this is a recipe for bad decisions. The authors presen
t methods based on three-mode factor analysis and multivariate regress
ion that can help both analysts and managers make better decisions reg
arding whether UPCs should be aggregated into brand units and, if so,
how should the aggregation be done; which marketing instruments to tra
ck; and how to disentangle correlated promotional strategies. The prac
ticality of this approach is demonstrated by an application to UPC-lev
el data (25 UPCs, seven marketing instruments, and 156 weeks). In this
example, to aggregate UPCs within a manufacturer into brand units wou
ld distort the relations between the marketing instruments and market
responses. A multivariate regression from the competitive-component sc
ores provides a methodologically sound and practical method for calibr
ating market response in such cases.