Estimation of Product Category Sales Responsiveness to Allocated Shelf Space

Pierre Desmet () and Valérie Renaudin
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Valérie Renaudin: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: A retail chain manager has to draw on experience based on data available from his points of sale to diagnose space misallocations in stores and to make recommendations. This paper presents an empirical estimate of shelf-space elasticities from a variety-store chain database at product category level with a share of space vs. share of sales econometric model. It suggests that external influences could explain space elasticity differences. Results show that space-elasticities increase with the impulse buying rate of the product category and do not depend on the type of store.

Keywords: space allocation; shelf space elasticities; impulse buying (search for similar items in EconPapers)
Date: 1998-01-25
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Citations: View citations in EconPapers (49)

Published in International Journal of Research in Marketing, 1998, 15 (1), pp.443-457

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00143451

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