“The New Kid on The Block: A Meta-Analysis of Incumbents’ Responses to Low-Cost Market Entrants”

Dissertation Essay 2 with Carlos Lourenço and Charles H. Noble.

Preliminary Data Analysis (Targeted to Journal of Academy of Marketing Science)

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Accepted for the presentation at BI-JAMS thought leaders' conference on generalizations in marketing: systematic reviews and meta-analyses

The entry of a new firm into an existing market provokes incumbents’ defensive marketing actions to protect their markets. Although a large body of literature in marketing, strategy, and economics has been accumulated reporting incumbents’ reactions to entry, the main findings of these studies remain fragmented. Accordingly, researchers and practitioner still need a comprehensive framework that investigates the type, intensity, and direction of the incumbent’s response to the rival’s entry. To get a holistic view, the present study applies a meta-analysis technique to re-analyze existing research findings on the incumbents’ reactions to the new entry. Specifically, the authors draw a distinction between price and non-price strategies (including quality, advertising, and promotion) and compare price vs. non-price responses to the rival’s entry. The authors first provide a summary of the various findings regarding the incumbents’ responses to the entry. Then, they aggregate prior research findings to explore the type, intensity, and direction of these reactions. The findings of this study will help managers to better understand and predict competitors’ reaction to the entry and will offer several directions for future research 

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"Bluff or Real? Helping Incumbents Recognize How a Really Threatening Firm Looks Like"

With Carlos Lourenço , Charles H. Noble and Rafael Becerril Arreola

Preliminary Data Analysis (Targeted to Strategic Management Journal )

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In this paper, we use a rich, multi-market longitudinal dataset from the US airline industry to explore determinants of bluff vs. serious market entry threats. The threat is bluff when the potential entrant is, ‘in reality’, not planning to enter the market. We will estimate the probability of threat being “real” as a function of market characteristics, a potential entrant’s and incumbents’ characteristics as well as their market network structure. According to the motivation-capability framework, we argue that threats are more likely to be real when the potential entrant has “motivation” to enter a market as well as the “capability” of doing so. To deal with the fact that it is not always possible to know whether a threat is serious or bluff when there is no market entry (because threat might be real, but incumbents’ deterrence strategies were effective to deter the entry), we employ state-of-the-art multiple imputation methodologies (e.g., MICE). All in all, the findings of this research will provide better insights for practitioners to more effectively and efficiently allocate their limited marketing resources over time to defend their market in the face of a rival’s threat of entry and actual entry