This paper considers optimal positioning, advertising, and pricing strategies for a firm contemplating entry in a market dominated by an entrenched competitor. Drawing on behavioral research on consumer preference formation, we develop an individual-level model that reflects differing consumer...

Brand positioning and competitive reaction are important determinants of optimal brand strategy. Analyses of brand strategy have focused on optimal pricing and positioning issues using either empirical models of perceptions and preferences, game theory to examine competition, or both. However,...