Merchandising and the life cycle of books sold by mail

Pierre Desmet
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Pierre Desmet: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, ESSEC Business School

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Abstract: Space allocation is a major decision for the catalog business. It depends on the demand function and management constraints. Sales elasticities with respect to price and catalog space allocated to books sold by mail order are measured at different stages of the product's life cycle. Econometric analysis of a sample of more than 700 observations for books sold by a French catalog club confirms that price elasticity is higher for repeats than for new books. Surprisingly, space elasticity is stable for the two groups. The study also concludes that some results obtained in advertising research on the effect of so‐called mechanical variables of catalog display (frame, left/right page, etc.) are also valid for catalogs.

Keywords: catalog; space allocation; model; price elasticity; mechanical variables (search for similar items in EconPapers)
Date: 1995
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Published in Journal of Direct Marketing / Journal of Interactive Marketing, 1995, 9 (3), ⟨10.1002/dir.4000090308⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02132588

DOI: 10.1002/dir.4000090308

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