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Competitive product positioning and pricing under brand loyalty

Faculty Advisor

Date

2016

Keywords

product differentiation, spatial competition, brand loyalty, pricing

Abstract (summary)

We analyze the pure strategy equilibrium in prices and the corresponding equilibrium product differentiation in a two-stage linear spatial competition duopoly model with quadratic transportation costs. Both firms have segments of brand loyal and non-brand loyal consumer segments, with the two firms primarily competing on the brand switching segment. A comparative statics analysis is undertaken, looking at the impact of a change in size, presence, and asymmetry of the brand loyal segments.

Publication Information

Enstroem, R. & Ghosh, S. (2016). Competitive product positioning and pricing under brand loyalty. Indian Economic Review, 51(1-2), 69–81.

DOI

Notes

Item Type

Article

Language

English

Rights

All Rights Reserved