| Summary: | 碩士 === 國立高雄應用科技大學 === 國際企業系 === 98 === Since Taiwan has joined the WTO, it faced the pressure of the open market, traffic decrease and cancellation of self-production rate. This is a very urgent problem, how to enhance competitiveness for automobile industry in Taiwan at present. In recent years, product line extensions have become a favored strategy of product managers. Therefore more and more enterprises use the market share by the product line extension. This thesis uses Fixed Effect Model intends to investigate product line rivalry in the Taiwan automobile industry. The purpose is probing into the effect of price and market share from product line extension and the others possible influence of important variables in different markets.
This article uses 585 data of Taiwan automobile industry for a sample of between 2007and 2009 to set up the panel data. It distinguishes car emission into different markets, small, medium, large-sized and the whole market in Taiwan. It uses the Fixed Effect Model to analyze these four markets. Empirical results obtained the following conclusion, in the equation of price that shows product line length have had positive and statistically significance correlated with price between medium and the whole market. In the equation of market share, product line length have had positive and statistically significance correlated with market share as well; however, competitor product line length have had negatively and statistically significantly correlated with market share in these three markets and whole markets. Clearly, the product line extension is still a main strategy of enterprise competition in automobile market.
Key Words: Product Line Extensions, Fixed Effect Model, Market Segmentation.
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