Assessment of aggregate interaction effect and aggregate persistence effect in market share analysis

Abstract

The paper proposes an alternative conceptualization to decision variable interaction in market share analysis, by isolating the interaction free market share. The multicollinearity problem would thus be reduced. Further a method to correct for autocorrelation is proposed. Persistence which is the long term impact of current marketing action is identified. The theoretical conceptualization is run over a frequently moving consumer brand – Britannia Tiger glucose biscuits and the managerial implications are discussed.