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Competitive Maps: The Structure Underlying Asymmetric Cross Elasticities



A special case of three-mode factor analysis is used to portray the systematic structure underlying asymmetric cross elasticities for a broad class of market-share attraction models. Analysis of the variation over retail outlets and weeks reveals competitive patterns corresponding to sales for the major brands in the market as well as patterns reflecting shelf-price competition. Analysis of the brand domain results in a joint space. One set of brand positions portrays how brands exert influence over the competition. The other set of points portrays how brands are influenced by others. The interset distances (angles) provide direct measures of competitive pressures. Maps are formed as spatial representations of each of the competitive patterns discovered.

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