In:
Journal of Marketing Research, SAGE Publications, Vol. 41, No. 4 ( 2004-11), p. 448-456
Abstract:
The authors develop a sales model that can be used to assess cross-category price effects that are specific to individual items (stockkeeping units) from store-level sales data. Previous cross-category studies have typically assumed that the cross-category effects are the same across brands or items because the potential number of price effects to be estimated is large. The authors address this problem by decomposing the variability of cross-category price effects into two components: variability across items and across stores. They capture the variability across items by representing the item-level parameters as draws from distributions with category-level means. They account for variability across stores through a random-effects factor structure that represents the variation of within- and between-category price effects separately. The model is calibrated on weekly store sales data of items in three orange juice subcategories (refrigerated, frozen, and shelf-stable). The authors study competition between national brands and private labels across the subcategories, for which their model lends itself well. The results show asymmetrical price competition not only within but also across subcategories: the cross-subcategory impact of national brands on store brands appears to be substantially greater than that of store brands on national brands. In addition, the model supports the implementation of price zones at a more granular level than the current practice.
Type of Medium:
Online Resource
ISSN:
0022-2437
,
1547-7193
DOI:
10.1509/jmkr.41.4.448.47017
Language:
English
Publisher:
SAGE Publications
Publication Date:
2004
detail.hit.zdb_id:
2066604-4
detail.hit.zdb_id:
218319-5
SSG:
3,2
