The authors outline a conceptual framework for analyzing differences i
n competitive marketing behavior of businesses in established industri
al markets. They explicitly distinguish between retaliatory and cooper
ative marketing behavior. The structural characteristics of the served
markets and the competitive positions of businesses are postulated to
affect the nature and likelihood of retaliatory and cooperative behav
ior with respect to price and sales force expenditures. The authors sp
ecify different models explaining these dimensions of competitive mark
eting behavior at the strategic business unit level and test their hyp
otheses by estimating the various competitive behavior models using re
levant data obtained from the PIMS (Profit Impact of Market Strategies
) Program. The empirical results support several theoretical arguments
and provide insights into the determinants of competitive marketing b
ehavior in industrial markets.