The Entropy Concept And the Hendry Partitioning Approach
The Entropy Concept And the Hendry Partitioning Approach
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It is also used to analyze a product category in disequilibrium. For illustration, consider the dry-bleach example in Figure 2. Suppose that brand C is "under disturbance" as a result of an aggressive promotion of product design improvements, and that the campaign is successful. The Hendry model posits that in this situation the switching levels I« botv/een brands A and B v/ill still be balanced. The gain in share of brand C v/ill be drawn from brands A and B in proportion to their shares-. Thu...s, five-eights of the gain in the share of brand C v/ill cone from brand A.
Recall that the sv/itching is proportional to share relationship, when combined with the zero-order assumption, leads to equation (1) for switching between items i and j. There is considerable empirical and theoretical support for equation (1) which states that the switching between two choice alternatives is equal to a constant times their shares within the choice category. Under these assumptions, Kalv/ani and Morrison (1977) show that the empirical switching constant for a given product category is equal to the ratio of actual switch- ing to the expected switching when consumer choice probabilities are homogeneous and each individual's probability of choosing alternative i is equal to its share within the category S..
What to read after The Entropy Concept And the Hendry Partitioning Approach?
You can find similar books in the "Read Also" column, or choose other free books by Manohar U Kalwani to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
It is also used to analyze a product category in disequilibrium. For illustration, consider the dry-bleach example in Figure 2. Suppose that brand C is "under disturbance" as a result of an aggressive promotion of product design improvements, and that the campaign is successful. The Hendry model posits that in this situation the switching levels I« botv/een brands A and B v/ill still be balanced. The gain in share of brand C v/ill be drawn from brands A and B in proportion to their shares-. Thu...s, five-eights of the gain in the share of brand C v/ill cone from brand A.
Recall that the sv/itching is proportional to share relationship, when combined with the zero-order assumption, leads to equation (1) for switching between items i and j. There is considerable empirical and theoretical support for equation (1) which states that the switching between two choice alternatives is equal to a constant times their shares within the choice category. Under these assumptions, Kalv/ani and Morrison (1977) show that the empirical switching constant for a given product category is equal to the ratio of actual switch- ing to the expected switching when consumer choice probabilities are homogeneous and each individual's probability of choosing alternative i is equal to its share within the category S..
What to read after The Entropy Concept And the Hendry Partitioning Approach?
You can find similar books in the "Read Also" column, or choose other free books by Manohar U Kalwani to read onlineMoreLess
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