Skip to main content

Market share determination in marketing service industries - A demand side approach*

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

A marketing service industry provides its business clients with its services such as advertising media or inbound telecommunication (i.e. toll free 800 calls) to increase their sales. By extending Dorfman and Steiner (1954) to the world where firms obtain costly marketing services from outside specialized providers, this paper studies the market shares of providers of a marketing service from the perspective of their clients. It derives that at the optimal point for a representative client, a provider's market share equals the ratio of the profits contributed by its service to the total profits contributed by the services of all providers in the market. Under certain conditions, a provider's market share is just a function of quality-price ratios. This result should facilitate choosing a marketing service from alternative providers and analyzing market shares in marketing-service industries.

Keywords: Market share; Specialized providers; Telecommunications

Document Type: Research Article

DOI: https://doi.org/10.1080/1043859022000012733

Affiliations: 1: Citicards Inc. 2: Economic Research Division, Alpha Bank and University of Patras, Greece

Publication date: 2003-10-01

More about this publication?
  • Access Key
  • Free ContentFree content
  • Partial Free ContentPartial Free content
  • New ContentNew content
  • Open Access ContentOpen access content
  • Partial Open Access ContentPartial Open access content
  • Subscribed ContentSubscribed content
  • Partial Subscribed ContentPartial Subscribed content
  • Free Trial ContentFree trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more