This paper analyzes how a firm should adjust its marketing expenditures and its price to defend its position in an existing market from attack by a competitive new product. Our focus is to provide usable managerial recommendations on the strategy of response. In particular we show that if...

Despite some misconceptions, consumer rationality is a property of the researcher rather than the consumer. Consumers become more rational as we are better able to predict their behavior or other important outcomes influenced by their behavior. Perfect rationality results when we achieve...

Advance selling occurs when sellers allow buyers to purchase at a time preceding consumption (Shugan and Xie 2000). Electronic tickets, smart cards, online prepayments, and other technological advances make advance selling possible for many, if not all, service providers. These technologies...

Channel coordination and, more generally, coordination of activities between interdependent economic agents is even more important today than when the paper was published more than 20 years ago. One reason is the trend toward globalization and outsourcing caused, in part, by the development of...

Eric Tsang's response makes the legitimate point that prediction and explanation can be different goals. However, his arguments also suffer from several errors in logic, most often the converse error. I do not claim that unrealistic assumptions breed good theories. I only claim that breakthrough...

features many and diverse articles that analyze competitive responsiveness. Although recent editorials (e.g., Shugan 2002) suggest that competitive responsiveness is only a part of a comprehensive competitive marketing strategy, it remains a vital part. For that reason and many others, is...

Influential forecasts occur when the forecast itself determines whether the forecast is tested. New product sales forecasts are often influential because a low forecast may cause a firm not to launch a new product so that actual sales are never observed. This paper considers a dilemma we face as...

The opening of Count Lev Nikolayevich (Leo) Tolstoy's novel inspired linguist, molecular physiologist and biogeographer Jared M. Diamond's eponym for the Anna Karenina principle (Diamond 1997). The principle suggests that no one property guarantees success but many guarantee failure. The Anna...

, in collaboration with the Informs Society on Marketing Science (ISMS), announces a new type of authored submission—the database report. will consider the publication of submitted databases. The same standards will apply to these detached databases as for the data employed in submitted...

For every new product and service entrant, there are usually many incumbents who must defend their positions in the market. Hence, defensive strategy is as least as critical as new-product strategy. Our 1983 article argued that defensive strategy critically depends on the distribution of buyer...