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| Author: | Jacobson, R. |
| Title: | Distinguishing among competing theories of the market share effect. |
| Journal: | Journal of Marketing
1988 : OCT, VOL. 52:4, p. 68-80 |
| Index terms: | MARKETING THEORY MARKET SHARE MARKETING PROFITABILITY |
| Language: | eng |
| Abstract: | The relationship between market share and profitability is discussed. Literature about the topic is reviewed. Theories of the market share effect are compared. Factors influencing the relationship are highlighted. A reduced form model of profitability is developed. This form produces market share coefficients indistinguishable from zero.It is consistent with an underlying structural model with no direct market share effect. The bivariate correlation between market share and return on investment is analysed. Unobservable factors influencing both variables are highlighted. Managerial implications are summarized. |
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