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Empirical Analysis of Competitive Interaction in Food Product Categories

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  • William P. Putsis Jr.

Abstract

This paper provides an overview of recent research on estimating competitive interaction in food product categories. In particular, the focus of this review is on research using scanner data conducted at the disaggregate (e.g., store, chain or local market) level, including empirical studies of vertical (i.e., within-channel) conduct. Studies addressing the competitive interaction on price, as well as non-price variables (e.g., in-store display and feature advertising) are considered. The author first describes the methodologies available for measuring the competitive interaction between firms and then briefly summarizes recent empirical developments. Given the complexity of the interactions that take place in practice, it is argued that much of the richness of actual competitive behavior is lost in aggregate analysis. Competitive interaction is the result of a complex set of variables and influences-?demand side factors, market and industry structure, firm ?"personality",? and category characteristics all interact in a complex fashion to determine strategic behavior of retailers and manufacturers.

Suggested Citation

  • William P. Putsis Jr., 1998. "Empirical Analysis of Competitive Interaction in Food Product Categories," Food Marketing Policy Center Research Reports 041, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:fpcrep:041
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    File URL: http://fmpc.uconn.edu/publications/rr/rr41.pdf
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    References listed on IDEAS

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    1. Kadiyali, Vrinda & Vilcassim, Naufel & Chintagunta, Pradeep, 1998. "Product line extensions and competitive market interactions: An empirical analysis," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 339-363, November.
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    Cited by:

    1. Peterson, Everett B. & Cotterill, Ronald W., 1998. "Incorporating Flexible Demand Systems in Empirical Models of Market Power," Research Reports 25159, University of Connecticut, Food Marketing Policy Center.

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