Promotional Elasticities and Category Characteristics

1996 ◽  
Vol 60 (2) ◽  
pp. 17-30 ◽  
Author(s):  
Chakravarthi Narasimhan ◽  
Scott A. Neslin ◽  
Subrata K. Sen
Keyword(s):  
Panel Data ◽  
Significant Relationship ◽  
Product Category ◽  
Private Label ◽  
Impulse Buying ◽  
Scanner Data ◽  
Product Categories ◽  
Managerial Implications ◽  
Scanner Panel Data ◽  
Scanner Panel

The authors study the relationships between product category characteristics and average brand promotional elasticity within the category. They present a framework for understanding these relationships and use it to generate hypotheses. The authors also consider three types of promotions and seven category characteristics. They study 108 product categories and use data compiled from weekly scanner data, scanner panel data, and survey data. Their results indicate that promotional elasticities are higher for categories with relatively fewer number of brands, higher category penetration, shorter interpurchase times, and higher consumer propensity to stockpile. The authors find no statistically significant relationship between promotional elasticity and either impulse buying or private label market share. They discuss the reasons for these results and their managerial implications.

scholarly journals How brand loyal shoppers respond to three different brand discontinuation scenarios

2017 ◽  
Vol 51 (11/12) ◽  
pp. 1918-1937 ◽  
Author(s):  
Denisa Hebblethwaite ◽  
Andrew G. Parsons ◽  
Mark T. Spence
Keyword(s):  
Panel Data ◽  
Design Methodology ◽  
Research Effort ◽  
Product Category ◽  
Content Type ◽  
Product Range ◽  
Scanner Panel Data ◽  
Scanner Panel ◽  
Range Study ◽  
Brand Product

Purpose Retailers may respond to a manufacturer discontinuing a brand or product range in three ways: not offering an alternative, thus reducing the assortment size; replacing it with a substitute; or introducing a rebranded product by the same manufacturer, if such an option is available. This study aims to evaluate all three scenarios and assess the extent to which total category sales are affected; how these discontinuations affect alternative offerings within the product category; and whether usage levels moderate within category switching behaviour. Shoppers did not have the option of switching stores to acquire the discontinued brand – their preferred brand/product range ceased to exist. Design/methodology/approach All three studies are quasi-experiments using scanner panel data. The product discontinuations examined are real events that took place within the major supermarket chain in New Zealand. Findings In all the three scenarios, average category sales decreased for the three-month period following the discontinuation. In Study 1, where a preferred brand of milk was discontinued with no replacement, overall category sales decreased but competing brands gained sales; introducing a replacement corn chip range (Study 2) successfully captured the spend on the discontinued range, but other brands lost sales; and rebranding a cereal (Study 3) decreased both brand sales and category sales. With the exception of Study 1, near-substitute product offerings did not capture a greater proportion of the spend from the discontinued brand as compared to less similar substitutes. Expectations were that heavy users would have a greater propensity to shift to near alternatives than would medium/light users; however, none of the studies lend support. Originality/value This is the first research effort to use scanner panel data to explore the reactions by brand loyal customers to three different brand discontinuation scenarios initiated by the manufacturer.

Nonstationary Conditional Trend Analysis: An Application to Scanner Panel Data

1993 ◽  
Vol 30 (3) ◽  
pp. 288-304 ◽  
Author(s):  
Peter J. Lenk ◽  
Ambar G. Rao ◽  
Vikas Tibrewala
Keyword(s):  
Panel Data ◽  
Trend Analysis ◽  
Negative Binomial Distribution ◽  
Negative Binomial ◽  
Model Misspecification ◽  
Base Period ◽  
Marketing Environment ◽  
Marketing Activities ◽  
Scanner Panel Data ◽  
Scanner Panel

Planning and evaluating consumer promotions is facilitated by knowledge of the types of consumers who contribute to incremental sales. In particular, interest may focus on identifying the contributions of buyers segmented on the basis of their prior purchase history. When the distribution of the number of purchase occasions in a base period can be described by the negative binomial distribution (NBD), conditional trend analysis (CTA) is a simple and effective approach for identifying the sources of incremental sales during a test (promotional) period. As currently implemented, CTA assumes a stationary marketing environment. The authors propose an extension of CTA that explicitly incorporates varying marketing activities. They also show that the often observed underprediction of purchases in the test period by nonbuyers in the base period is a consequence of the skewness of the NBD and is not necessarily due to model misspecification. An illustration with scanner panel data is provided.

On Using Demographic Variables to Determine Segment Membership in Logit Mixture Models

1994 ◽  
Vol 31 (1) ◽  
pp. 128-136 ◽  
Author(s):  
Sachin Gupta ◽  
Pradeep K. Chintagunta
Keyword(s):  
Panel Data ◽  
Mixture Models ◽  
Mixture Model ◽  
Demographic Variables ◽  
Demographic Characteristics ◽  
Empirical Application ◽  
Scanner Panel Data ◽  
Scanner Panel ◽  
Specific Profile ◽  
Brand Preferences

The authors propose an extension of the logit-mixture model that defines prior segment membership probabilities as functions of concomitant (demographic) variables. Using this approach it is possible to describe how membership in each of the segments, segments being characterized by a specific profile of brand preferences and marketing variable sensitivities, is related to household demographic characteristics. An empirical application of the methodology is provided using A.C. Nielsen scanner panel data on catsup. The authors provide a comparison with the results obtained using the extant methodology in estimation and validation samples of households.

scholarly journals The effects of price promotion on relative virtue and vice food products

2017 ◽  
Vol 20 (5) ◽  
pp. 637-654
Author(s):  
Josefa Parreño-Selva ◽  
Francisco J. Mas-Ruiz ◽  
Enar Ruiz-Conde
Keyword(s):  
Survey Data ◽  
Product Category ◽  
Scanner Data ◽  
Price Promotion ◽  
Low Fat ◽  
Price Promotions ◽  
Product Categories ◽  
Light Product ◽  
Enduring Involvement ◽  
Product Sales

Retailers use price promotion of light and regular products, but not all of these products are perceived as relative virtues and vices, respectively. This paper aims to identify whether consumers distinguish between the two product categories. Survey data is used to distinguish between each product category, and identifies low-fat milk as a light product that gives both immediate and delayed rewards. Daily scanner data from a hypermarket supports the effects of price promotions on sales within and between product categories, as expected. We expect that, (1) due to these light products representing more enduring involvement, demand is less price sensitive compared to demand for regular products; (2) as nonimpulse purchase products, price promotions of light products cannibalize the sales of other light products; and (3) the loss of light product benefits associated with switching means that price promotions of light products hurt regular product sales more than vice versa.

Sign in / Sign up

Export Citation Format

Share Document