Marketing Mix Reactions to Entry

Citation
T. Robinson, William, Marketing Mix Reactions to Entry, Marketing science , 7(4), 1988, pp. 368-385
Journal title
ISSN journal
07322399
Volume
7
Issue
4
Year of publication
1988
Pages
368 - 385
Database
ACNP
SICI code
Abstract
Initial product, distribution, marketing expenditure, and price reactions by incumbents are examined for 115 entrants into oligopolistic markets. The most common reaction pattern is either no reaction or only a single reaction. It is very unusual for entrants to face reactions across the entire marketing mix. Reactions in the first two years after entry are explained as a function of the entrant's strategy, incumbent characteristics, and industry characteristics. The explanation provides insights into why marketing mix reactions to entry are often limited.