Marketing Seminar- Barış Depecik

Author: CASE
Time: 10:00
Location: CASE 124




FRIDAY–21 April  2017

CAS 124-10:00


Speaker : Barış Depecik - Bilkent University

Title       :  Who Benefits from Brand Exits? Why?

Time      : 10:00 -11:30

Place      : CAS 124

Abstract: The increasing frequency of brand exits raises two questions pertinent for both manufacturers and retailers: When a brand disappears from the market, (i) what brands are better positioned to benefit from the exit? and (ii) what marketing efforts influence the realignment of sales after the exit?  To answer these questions, we develop a dynamic brand sales response model. The model allows for examination of the long-term effects of a brand exit on sales and identification of the drivers of excess demand redistribution following the exit.  We apply the model to brand exit events across five multiple repeat-purchase product categories. The results indicate that the market shares of a deleted brand, post-exit promotion strategies, and the incumbent brand’s similarity to the deleted brand explain variations in sales response to exits across brands. We examine the effect of similarity on multiple dimensions and reveal what underlying product attributes are most critical in attracting consumers of the deleted brand. Our results generate insights that will help firms better manage their product portfolios and marketing investments to maximize their share of the freed up demand.