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Advertising Marketing and Communication

In: Business and Management

Submitted By oesoes
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Question 6:
Why might we normally expect (in a market with no market functional differences between the brands) that the duplications down each column are approximately the same?
Table 3 shows average duplication of each brand, duplication coefficient, expected duplication and the difference of expected duplication and average duplication. In a market, it is expected the duplications across each brands are approximately the same due to constant duplication coefficient. Expected duplication is the value of penetration of each brand multiply by the duplication coefficient of overall market. For example, expected duplication for Kettle Fries is 37%, 33% for BB Corn Chips and 28% for BB Twisties. The average duplication for Kettle Fries is 37%, 33% for BB Corn Chips and 30% for BB Twisties. This proved that the expected duplication is most likely to be the same as average duplication for each brand. Marketers used expected duplication to forecast the average duplication pattern of a product. However, BB Standard is a special case. The expected duplication is not consistent as compare to other brands. The expected duplication of BB Standard is 112%. This might be involvement of partitioning on the brand. Partitioning means clustering of brands compete more intensely with others (Dawes 2006). This is supported by Winchester, Thiel, Arding and Lees (n.d.), “the Duplication of Purchase Law states that the competitive brands which consumers purchase will be similar in the aggregate from brand to brand however the purchase duplications for one brand with another will vary in line with the penetration of other brand.” It is expected that application of separate partition with different duplication coefficients in Duplication of Purchase Law (Lee 2009). For example, the partition for salty snacks could be different categorization: potato, corn and extruded. The reason for partitioning for BB standard is higher, this may due to the product price is cheaper or there is a promotion going on.

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