The estimation of pre- and postpromotion dips with store-level scanner data

Van Heerde, Harald J. and Leeflang, Peter S.H. and Wittink, Dick R. (1999) The estimation of pre- and postpromotion dips with store-level scanner data. [Working Paper]. p. 28. Research Report (No. 99B36).

[img]
Preview
PDF (Full text)
Download (183kB)
Related URLs:

Abstract/Index

One of the mysteries of store-level scanner data modeling is the lack of a dip in sales in the week(s) following a promotion. Researchers expect to find a postpromotion dip because analyses of household scanner panel data indicate that consumers tend to accelerate their purchases in response to a promotion that is, they buy earlier and/or purchase larger quantities than they would in the absence of a promotion. Thus, one should also find a pronounced dip in store-level sales in the week(s) following a promotion. However, researchers find such dips usually neither at the category nor at the brand level. Several arguments have been proposed for the lack of a postpromotion dip in store-level sales data. These arguments explain why dips may be hidden. Given that dips are difficult to detect by traditional models (and by a visual inspection of the data), we propose models that can account for a multitude of factors which together cause complex pre- and postpromotion dips. We use three alternative distributed lead- and lag structures: an Almon model, an Unrestricted dynamic effects model, and an Exponential decay model. In each model, we include four types of price discounts: without any support, with display-only support, with feature-only support, and with feature and display support. The models are calibrated on store-level scanner data for two product categories: tuna and toilet tissue. We estimate the dip to be between 4 and 25 percent of the current sales effect, which is consistent with household-level studies.

Item Type: Report / Paper (Working Paper)
Research documents and activity classification: Working Papers > Refereed Working Papers / of international relevance
Divisions: Department of Business and Management
Additional Information: The definitive version of the paper has been published in "Journal of Marketing Research (JMR)", Aug 2000, Vol. 37 Issue 3, pages 383-395.
MIUR Scientific Area: Area 13 - Economics and Statistics > SECS-P/08 Corporate Finance
Deposited by: Maria Teresa Nistico
Date Deposited: 07 Dec 2010 14:24
Last Modified: 21 Apr 2015 23:13
URI: http://eprints.luiss.it/id/eprint/794

Downloads

Downloads per month over past year

Repository Staff Only

View Item View Item