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A Plackett-Burman Experiment to Increase Supermarket Sales of a National Magazine

Author

Listed:
  • Gordon H. Bell

    (LucidView, Oak Ridge, Tennessee 37830)

  • Johannes Ledolter

    (Tippie College of Business, University of Iowa, Iowa City, Iowa 52242, and Vienna University of Economics and Business Administration, 1090 Vienna, Austria)

  • Arthur J. Swersey

    (Yale School of Management, New Haven, Connecticut 06520)

Abstract

This paper describes and discusses a Plackett-Burman experiment aimed at increasing supermarket sales of a top-selling national magazine. The experiment involved 10 factors relating to in-store advertising and the location of the magazine within the store. We discuss issues including choice of factors, alternative designs, sample-size determination (number of test stores and the length of the test period), and the analysis of the resulting data. We show the large benefits that accrued from our approach of testing many factors simultaneously compared to the common industry practice of sequentially testing one factor at a time. We also discuss the potential opportunities of applying this approach to other service problems.

Suggested Citation

  • Gordon H. Bell & Johannes Ledolter & Arthur J. Swersey, 2009. "A Plackett-Burman Experiment to Increase Supermarket Sales of a National Magazine," Interfaces, INFORMS, vol. 39(2), pages 145-158, April.
    • Handle: RePEc:inm:orinte:v:39:y:2009:i:2:p:145-158
    DOI: 10.1287/inte.1080.0424
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    References listed on IDEAS

    as
    1. Alain Bultez & Philippe Naert, 1988. "SH.A.R.P.: Shelf Allocation for Retailers' Profit," Marketing Science, INFORMS, vol. 7(3), pages 211-231.
    2. Rook, Dennis W, 1987. "The Buying Impulse," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(2), pages 189-199, September.
    3. Urban, Timothy L., 2005. "Inventory models with inventory-level-dependent demand: A comprehensive review and unifying theory," European Journal of Operational Research, Elsevier, vol. 162(3), pages 792-804, May.
    Full references (including those not matched with items on IDEAS)

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