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Estimation of Product Category Sales Responsiveness to Allocated Shelf Space

Author

Listed:
  • 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)

  • Valérie Renaudin

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Pierre Desmet & Valérie Renaudin, 1998. "Estimation of Product Category Sales Responsiveness to Allocated Shelf Space," Post-Print halshs-00143451, HAL.
  • Handle: RePEc:hal:journl:halshs-00143451
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