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Competitor Response Modeling
Predictive modeling that anticipates how competitors might respond to strategic moves, such as pricing changes or product launches.
Implications
A method used to predict how competitors will react to strategic moves, such as price changes or new product launches, allowing companies to anticipate and plan for these reactions.
Example
Example: A retail chain uses competitor response modeling to predict how its main competitor will react to a new store opening, helping to prepare marketing and pricing strategies in advance.
Related Terms
Different from competitive scenario planning, which explores a range of possible futures, response modeling specifically anticipates direct reactions from competitors.
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