Abstract

Having reliable models to predict the influence of marketing instruments on market performance is critical for efficient allocation of marketing resources. An Attraction Model is often used to predict market share, although it does not account for changing market structure. Howie and Kleczyk (2007) proposed a joined pre- and post- new brand introduction model based on a re-conceptualization of market share as a series of two-brand groups. The model is evaluated on its reliability of market share estimation. The study results reveal that the Full-Factorial Attraction Model accounts for the changing market structure as well as has a high predictive power. 

Key words: Market share estimation, Full-Factorial Attraction Model, GLS estimation.