The Invalidity of Profit=F(Market Share) PIMS Validation of Marketing Games

Abstract

Research that purports to validate simulations should itself be valid. A current stream of research puts forth as game validation criteria “laws” drawn from the Profit Impact of Marketing Strategies (PIMS) project. One PIMS-based “law” is that profit is a function of market share. The present study invalidates that PIMS profit=f(market share) criterion based on the PIMS project itself, published conceptual logical reservations against that relationship, published empirical studies against that relationship, and the invalidity in several vital respects of the methodology applying that relationship.