Sales Models For Many Items Using Attribute Data
- Topics:
- Brand Management
- Tags:
- Hardware,
- Item,
- Model,
- Peripherals,
- Sales,
- Sales Force Management,
- Sales Model,
- Sales Strategy,
- Scanners
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Overview: Sales models are mainly used to analyze markets with a small number of items, obtained after aggregating to the brand level. In practice, one may require analyses at a more disaggregate level. For such an analysis the number of relevant items in the product category make commonly used sales models difficult to use as they would contain too many parameters. This paper proposes a new model, which allows for the analysis of a market with many items while using only a moderate number of easily interpretable parameters. This is achieved by writing the sales model as a Hierarchical Bayes model. The marketing-mix effectiveness is related to item characteristics such as brand, package size, and package type and shelf position. Besides entering and changing products, the model also allows items to leave the market. This paper considers the representation, specification, and estimation of the model. It applies the model to a ketchup scanner data set with 23 items at the chain level. The results indicate that the model fits the sales of most items very well.
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Format: PDF | Size: 707KB | Date: Jul 2002 | Pages: 28
