Market Response as a Function of Design, Competition, and Socio-political Condition: An Empirical Model

Abstract

Some previous researches about market response focus on the design of the product, some others focus on market and competition, and a few researches consider politic and regulation. All of those factors affect the market response. Therefore, this study concerns to consider all of those factors. An empirical model of market response as a function of product design, company income, product trend, competitor's condition, marketing effort, socio-economic condition, and political condition is developed in this study, then a set of real case data of an automotive product are utilized to finalize and validate the model. Chi-square tests show that the output of the model is close to the real data. The final model developed can be used to assess current condition of the factors, to predict the future condition, and to help the decision maker in prioritizing the actions to maintain the market response.