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Sales by multi-product retailers: a comment

  • Jens-Peter Loy

    (Department of Agricultural Economics, University of Kiel, Kiel, Germany)

  • Christoph R. Weiss

    (Department of Economics, Vienna University of Economics and Business Administration, Vienna, Austria)

Registered author(s):

    Immanent to the retail business is its multiproduct nature. In a recent issue of this journal Richards (2006) introduces a multiproduct model for perishable food items. Richards concludes that depth and breadth of sales are complementary marketing tools to increase store sales. He also provides empirical support for this hypothesis. We will show in the following that Richards' model does not suggest a complementarity between depth and breadth of sales. Instead, these tools are substitutes in his model. Therefore, the interpretation of his empirical result has to be reconsidered. Copyright © 2009 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/mde.1467
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    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 30 (2009)
    Issue (Month): 8 ()
    Pages: 513-515

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    Handle: RePEc:wly:mgtdec:v:30:y:2009:i:8:p:513-515
    Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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    1. Levy, Daniel, et al, 1997. "The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 791-825, August.
    2. Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M. & Villas-Boas, Sofia B, 2007. "Sales : tests of theories on causality and timing," CUDARE Working Paper Series 1031, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    3. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
    4. Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
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