Impact of Distribution Reorganization on What- and Where Sample Clauses

Impact of Distribution Reorganization on What- and Where to-Buy Decisions‌ In order to quantify the impact of bankruptcy induced distribution reorganization on consumers’ what and where-to-buy decisions, I run counterfactual scenario 3. In this scenario, I com- pute market shares for the market where there exist significant brand equity changes for both Chrysler LLC and GM but where no dealer closings happened. Then I compare counterfactual scenario 3 market shares with baseline market shares to assess brand and retailer substitution. Figure 10 shows the effect of Chrysler LLC’s dealer network pruning on cumulative brand level substitutions. Chrysler LLC’s Dodge brand stands to lose substantially (-15.8 percent) while Chrysler LLC’s Chrysler brand is not impacted as much (-1.74 percent). The results suggests heterogeneous distribution network structure effects at the brand level. When it comes to Chrysler LLC’s competitors, Honda (7.9 percent) and Toyota (2.97 percent) benefit the most from Chrysler LLC’s dealer network pruning, while Ford gains the least (0.13 percent). Do all Honda dealers gain from Chrysler LLC’s dealer network pruning? Do some Honda dealers gain more than others? Since my model is at the retailer level, I can directly address these questions as well. In Figure 11, I plot the locations and market share gains of two Honda and two Toyota dealers due to Chrysler LLC’s dealer network pruning. The results clearly show that the substitution effects from tempered competition is quite heterogeneous across competing manufacturers’ dealers and also within dealers of the same competing manufacturer. For example, whereas the Honda dealer that is closer to the terminated Chrysler LLC dealers gains 7.58 percent of the switching consumers, the more distant Honda dealer only attracts
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