Estimating loyalty and switching with an application to the automobile market

Article Abstract:

A brand switching model that explores customer choice in terms of past, present and substitute choices is introduced. This model characterizes the market as comprised of two categories of consumers: the 'Loyals' and the 'Shoppers.' Use of the model will yield estimates of the ratio between the two groups in various submarkets, measures of the submarkets' success in capturing Shoppers, and criteria for evaluating some of the market's competitive structures based on loyalty and shopping proportions. An empirical application of the model to the US automobile market offers several interesting conclusions pertaining to such issues as the American market's competitiveness as compared to that of foreign markets, the nature of competition between submarkets in terms of form, and loyalty and shopping as influenced by previous dealer experience.

Automobile industry, Consumer preferences, Consumer behavior, Loyalty

---

Airline mergers and competition: an integration of stock and product price effects

Article Abstract:

Research on airfares argues that market power plays a significant role in airline mergers while studies on stock prices conclude that market power is not a prime determinant in horizontal mergers. To find clarification on these contrasting views, a study was conducted that combines the two lines of research by investigating the same set of airline mergers from a capital market perspective. It relates stock-market changes to product-market changes, thereby coming up with a dual market point of view. Potential sources of noise are removed by sampling airline mergers during the 1985-1988 timeframe when implementation of the antitrust policy was not strict. Results suggest that airline mergers lead to both greater market power and more efficient operations. Implications are discussed.

Scheduled Airlines, Scheduled Air Transportation, Air Transportation, Scheduled, And Air Courier Services, Mergers, acquisitions and divestments, Acquisitions and mergers, Airlines, Antitrust law

---

Similar abstracts:

• Abstracts: Detecting and modeling changing volatility in the copper futures market. Modes of fluctuation in metal futures prices
• Abstracts: Interstate banking and small business finance: implications from available evidence. Can your small company acquire resources as favorably as the large company?
• Abstracts: Uncertainty and Leontief systems: an application to the selection of space station system designs. Forecasting error evaluation in material requirements planning (MRP) production-inventory systems
• Abstracts: Dependability and organizational bankruptcy: an application of agency and prospect theory
• Abstracts: Organizational decline and innovation: a contingency framework. Temporal sequences in information acquisition for decision making: a focus on source and medium

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.