Allocation of shelf space: A case study of refrigerated juice products in grocery stores

Mark G. Brown and Jong-Ying Lee
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Mark G. Brown: Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240, Postal: Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240
Jong-Ying Lee: Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240, Postal: Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240

Agribusiness, 1996, vol. 12, issue 2, 113-121

Abstract: The results of this study show how shelf space can be allocated between products in a profit maximizing framework. Cross sectional data were analyzed to determine whether orange juice might have less than optimal shelf space. Estimates of product demands indicate that cross-facings-per-store effects were insignificant; and, hence, only own-facings-per-store effects were used in the analysis. Results indicate that orange juice's actual share of department facings of 51% is less than its optimal share of department facings that range from 80 to 61.6% based on alternative markup assumptions. © 1996 John Wiley & Sons, Inc.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:12:y:1996:i:2:p:113-121

DOI: 10.1002/(SICI)1520-6297(199603/04)12:2<113::AID-AGR1>3.0.CO;2-5

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