Flexible Decomposition Of Sales Promotion Effects Using Store-Level Scanner Data
- Topics:
- Brand Management
- Tags:
- Decomposition,
- Elasticity,
- Hardware,
- Peripherals,
- Sales,
- Sales Force Management,
- Sales Promotion,
- Sales Strategy,
- Scanners
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Overview: Recent studies in marketing show decompositions of sales promotion effects based on household-level scanner data. Typically, the total elasticity is decomposed into choice, timing, and quantity elastic ties. This article proposes a model that estimates standard, enhanced, and flexible decompositions based on store-level data. The standard decomposition divides the own-brand sales elasticity into a market share ("choice") elasticity, a period share ("timing") elasticity, and a category sales ("quantity") elasticity. The enhanced decomposition includes two extensions. One extension is the separation of the category sales elasticity into a between-store share and a total market elasticity, which allows people to measure cross-store effects of promotions. Hence, the relative contribution of the latter two elastic ties increases at the cost of the relative contribution of the market shares elasticity. The flexible estimation of promotion effects, separately for four types of support, provides superior insight into marketplace phenomena relevant to marketing scientists and marketing practitioners.
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Format: PDF | Size: 218KB | Date: Dec 2000 | Pages: 41
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