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Economic evaluation of shelf-space management in grocery stores


  • Chanjin Chung

    (Associate Professor, Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078)

  • Todd M. Schmit

    (Assistant Professor, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)

  • Diansheng Dong

    (Research Associate, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)

  • Harry M. Kaiser

    (Professor, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)


Recently, many commodity groups have shifted promotion expenditures from generic advertising to non-advertising activities such as in-store promotion programs. Accordingly, corresponding evaluation methods need to be developed to identify the benefits of these non-advertising programs. We develop a general framework to assess product sales performance of in-store shelf-space management programs in retail stores. The framework was applied to the evaluation of dairy case management programs in the Northwestern Hudson Valley market, New York. Simulation results on fluid milk product sales indicate that preferred product locations vary between smaller convenience stores and larger supermarket retailers. On average, the dairy case management program was estimated to improve product sales 6 to 10% at the retailer level. [Econlit subject codes: M300, Q130] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 583-597, 2007.

Suggested Citation

  • Chanjin Chung & Todd M. Schmit & Diansheng Dong & Harry M. Kaiser, 2007. "Economic evaluation of shelf-space management in grocery stores," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 583-597.
  • Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:583-597
    DOI: 10.1002/agr.20141

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    References listed on IDEAS

    1. Schmit, Todd M. & Chung, Chanjin & Kaiser, Harry M., 2006. "The Dairy Case Management Program: Does It Mooove More Milk?," Choices, Agricultural and Applied Economics Association, vol. 21(2).
    2. repec:dau:papers:123456789/1757 is not listed on IDEAS
    3. Pierre Desmet & Valérie Renaudin, 1998. "Estimation of Product Category Sales Responsiveness to Allocated Shelf Space," Post-Print halshs-00143451, HAL.
    4. Hoyer, Wayne D, 1984. " An Examination of Consumer Decision Making for a Common Repeat Purchase Product," Journal of Consumer Research, Oxford University Press, vol. 11(3), pages 822-829, December.
    5. Schmit, Todd M. & Kaiser, Harry M. & Chung, Chanjin, 2004. "The Dairy Case Management Program: Does It Mooove More Milk? A Case Study of the Northwestern Hudson Valley Market," Research Bulletins 122093, Cornell University, Department of Applied Economics and Management.
    6. H. Tien, 1974. "Reply," Demography, Springer;Population Association of America (PAA), vol. 11(4), pages 708-714, November.
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    1. repec:eee:joreco:v:34:y:2017:i:c:p:311-318 is not listed on IDEAS
    2. repec:eee:jouret:v:86:y:2010:i:2:p:125-136 is not listed on IDEAS
    3. Erica Herpen & Erjen Nierop & Laurens Sloot, 2012. "The relationship between in-store marketing and observed sales for organic versus fair trade products," Marketing Letters, Springer, vol. 23(1), pages 293-308, March.

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