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Which Brands gain Share from which Brands? Inference from Store-Level Scanner Data

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  • Rutger van Oest

    ()
    (Tilburg University)

  • Philip Hans Franses

    ()
    (Faculty of Economics, Erasmus Universiteit Rotterdam)

Abstract

Market share models for weekly store-level data are useful to understand competitive structures by delivering own and cross price elasticities. These models can however not be used to examine which brands lose share to which brands during a specificperiod of time. It is for this purpose that we propose a new model, which does allow for such an examination. We illustrate the model for two product categories in two markets, and we show that our model has validity in terms of both in-sample fit and out-of-sample forecasting. We also demonstrate how our model can be used to decompose own and cross price elasticities to get additional insights into the competitive structure.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-079/4.

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Date of creation: 06 Oct 2003
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Handle: RePEc:dgr:uvatin:20030079

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Web page: http://www.tinbergen.nl

Related research

Keywords: competitive structure; elasticity decomposition; market shares; share-switching; store-level scanner data;

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