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BARRIERS TO ENTRY AND MARKET ENTRY DECISIONS IN CONSUMER AND INDUSTRIAL GOODS MARKETSABSTRACTThis study tests six market entry barriers in consumer, and industrial markets, i.e., cost advantages of incumbents, product differentiation of incumbents, capital requirements, customer switching costs, access to distribution channels, and government policy. The market entry decisions of 137 executives from 49 major U.S. corporations were modeled with a decision making instrument consisting of 32 market entry opportunities. Each respondent's decisions were modeled using regression analysis. The differences concerning the importance of the six market entry barriers for early and late entry into consumer, and industrial goods markets were investigated. The results indicate that marketing executives use all six barriers in making market entry decisions. The cost advantages of incumbents is considered to be the most important relative to other market entry barriers. Important differences were also discovered among the other five barriers. Furthermore, the importance of barriers also differs for entry into consumer versus industrial goods markets.
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