Authors : Carmen Otero Neira , Teresa Garcia and Maria Concepcion Varela
Abstract: Firms have incentives to improve their competitive position. For this purpose they carry out a variety of aggressive marketing actions, introducing new products, lowering the prices of existing ones, or increasing their marketing budgets. The success or failure of such actions and the achievement of the competitive advantages deriving from them depend on the responses of their competitors. We justify theoretically a set of hypotheses on the effect of 2 marketing actions-price cut and sales promotion- and of the characteristics of the firm that responds, on the time that the firm took to respond. These are then tested empirically with data provided by marketing managers of industrial firms.
Carmen Otero Neira , Teresa Garcia and Maria Concepcion Varela , 2007. Competitive Marketing Rivalry. Explaining the Time of Response to Strategic Actions . International Business Management, 1: 30-34.