Market demarcation : Theoretical framework and results of an empirical investigation of the German car market

Market demarcation is based on the idea that a sales market is not an undifferentiated set of products, but that it rather embodies an entity made up of separate groups of products which differ with regard to certain demand‐relevant characteristics. The term market demarcation is defined first as a market structure explained by drawing boundaries. Carrying on from this idea, describes a procedure for demarcating markets. The procedure comprises three steps: the first aim is to define the products which make up the overall market that has to be structured. The second task is to determine the centre on the basis of which the overall market can be divided up into different submarkets. Finally, these submarkets must be identified using statistical methods.