Determinants of Market Share

The economic well-being of a business firm can often be summarized in terms of its market share. Market share responds to price, advertising expenditures, retail availability, and product characteristics. Marketing managers are compelled to understand the dynamics of market share behavior in these terms. This article is an analysis of market share movements for a low-cost, frequently purchased consumer product. It represents a first effort in understanding such movements for marketing management's major decision variables.