MEASURING
THE EFFECT OF RETAIL STORE PROMOTIONS ON BRAND AND STORE SUBSTITUTION
by V. Kumar and Robert P. Leone
Using store-level scanner data, the authors investigate the effect
of retail store price promotion, featuring, and displays on sales
of brands of disposable diapers within a city. A hierarchical,
cross-sectional, and time-series modeling procedure is used to
identify the competitive structure among retail stores within
a test market city. Models are developed for pooled store pairs
to investigate the effect of promotion on store substitution.
The specification of these models is based on findings from within-store
brand substitution, followed by featuring and displays. Similarly,
these activities produced store substitution in certain instances.
However which specific promotional variables are significant and
the magnitude of the effect are a function of the geographic proximity
of the stores.
Journal
of Marketing Research, Vol. 25 (May 1998)
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