The Relationship between Market Share and Information in a High-Tech Industry
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Vasilis Theoharakis
The role of information in high-technology markets is critical (Dutta, Narasimhan and Rajiv 1999; Farrell and Saloner 1986; Weiss and Heide 1993). In these markets, the volatility and volume of information present managers and researchers with the considerable challenge of monitoring such information and examining how potential customers may respond to it. This article examines the effects of the type and volume of information on the market share of different technological standards in the Local Area Networks (LAN) industry. We identify three different types of information: technological, availability and adoption. Our empirical application suggests that all three types of information have significant effects on the market share of a technological standard, but their direction and magnitude differ. More specifically, technology-related information is negatively related to market share as it demonstrates that the underlying technology is immature and still evolving. Both availability and adoption-related information have a positive effect on market share, but the former is larger than the latter. We conclude that high-tech firms should emphasize the dissemination of information, especially availability-related, as part of their promotional strategy for a new technology. Otherwise, they may risk missing an opportunity to achieve a higher share and establish their market presence.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Article
- Assessing Heterogeneity in Discrete Choice Models Using a Dirichlet Process Prior
- Durable Good, Extended Warranty and Channel Coordination
- The Relationship between Market Share and Information in a High-Tech Industry
- Product Entry Timing in Dual Distribution Channels: The Case of the Movie Industry
- Holding Company Cost Economies in the Global Advertising and Marketing Services Business
- Buyer Shopping Costs and Retail Pricing: An Indirect Empirical Test
- A New Approach for Capturing and Potraying the Competitive Structure of a Market: An Application To The Bush-Kerry-Nader Presidential Contest
- Long-term Profit Impact Of Integrated Marketing Communications Program
