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Consumer Preference Formation and Pioneering Advantage

Gregory S. Carpenter and Kent Nakamoto
Journal of Marketing Research
Vol. 26, No. 3 (Aug., 1989), pp. 285-298
DOI: 10.2307/3172901
Stable URL: http://www.jstor.org/stable/3172901
Page Count: 14
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Consumer Preference Formation and Pioneering Advantage
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Abstract

Market pioneers outsell later entrants in both consumer and industrial markets. Entry barriers arising from preemptive positioning and switching costs have been advanced to explain this market share difference, termed "pioneering advantage." However, empirical studies show that pioneering advantages are present even in mature markets in which brands reposition and switching costs are minimal. In these cases, the authors argue that pioneering advantage can arise from the process by which consumers learn about brands and form their preferences. This process can produce a preference structure that favors the pioneer, making it difficult for later entrants to "compete away" the pioneer's large market share, even if brands can reposition and switching costs are minimal.

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