An Analysis of the Demand Structure for Branded Consumer Products

This article reports the results of a demand analysis investigating the underlying structure and price responsiveness of a consumer product market. The analysis employs a non-linear demand model arising directly from recent empirical research on individual consumer behavior and is concerned with the determinants of market share in a competitive environment. The empirical investigation focuses on the form of the relationship relating price and adverstising expenditures to market share, and in this interest a number of linear models relating these variables were fitted to provide a reference for the results obtained with the non-linear model. Finally, the results of the study were put into perspective and related to the relevant literature.