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Comparative Response Strategies

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Comparative Response Strategies- Introduction: In the current competitive market, various rivalries between industry giants may be witnessed. There are various components in which these competitions are studied. The core principle of such competition should be focussing on one’s own strength and avoiding one’s weaknesses. But, many a times, companies and industries tend to neglect this fundamental. Various companies implement various marketing mixes with different composition of the constituents. There for to analyse the action-response relationship can be studies by a matrix called Comparative Response Matrix.
Comparative Response Matrix: The Comparative Response Matrix is an important tool used to study the competition between two companies. The matrix has three parameters namely Price, Quality and Advertisement. These three parameters give a 3x3 matrix which give us nine different action-response parameters. The matrix can be drawn as follows:

COMPANY B(Response) | COMPANY A(Action) | | | Price | Quality | Advertising | | Price | Cp,p | Cq,p | | | | | | Ca,p | | | | | | | Quality | Cp,q | Cq,q | Ca,q | | Advertising | Cp,a | Cq,a | Ca,a |

Table1. Comparative Response matrix Therefore all the nine parameters mentioned in the table signify the responses taken by company B against the actions taken by company A.
We can further discuss each parameter separately using examples from the industry in detail. 1. Cpp : The Cpp determines that the company B has responded to company A’s action with the same tool. We may witness this more often in the sectors with larger consumer base where the number of consumers is significantly high. The tool here that is used to combat the action of the company A is price. In this strategy, Company B may respond in either way to the action of company A. Suppose Company A

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