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Estimating sales and sales market share from sales rank data for consumer appliances

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  • Touzani, Samir
  • Van Buskirk, Robert

Abstract

Our motivation in this work is to find an adequate probability distribution to fit sales volumes of different appliances. This distribution allows for the translation of sales rank into sales volume. This paper shows that the log-normal distribution and specifically the truncated version are well suited for this purpose. We demonstrate that using sales proxies derived from a calibrated truncated log-normal distribution function can be used to produce realistic estimates of market average product prices, and product attributes. We show that the market averages calculated with the sales proxies derived from the calibrated, truncated log-normal distribution provide better market average estimates than sales proxies estimated with simpler distribution functions.

Suggested Citation

  • Touzani, Samir & Van Buskirk, Robert, 2016. "Estimating sales and sales market share from sales rank data for consumer appliances," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 451(C), pages 266-276.
    • Handle: RePEc:eee:phsmap:v:451:y:2016:i:c:p:266-276
    DOI: 10.1016/j.physa.2016.01.030
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    References listed on IDEAS

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    Cited by:

    1. Gerke, Brian F. & McNeil, Michael A. & Tu, Thomas, 2017. "The International Database of Efficient Appliances (IDEA): A new tool to support appliance energy-efficiency deployment," Applied Energy, Elsevier, vol. 205(C), pages 453-464.
    2. Radim Dušek & Viktor Vojtko & Jan Šalamoun, 2018. "Estimating Local Consumer Market Size for Marketing Decision-Making," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(6), pages 1441-1449.

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