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Journal articles (1998), International Journal of Research in Marketing, pp. 443-457

Estimation of Product Category Sales Responsiveness to Allocated Shelf Space

DESMET Pierre , RENAUDIN V.

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.

DESMET, P. and RENAUDIN, V. (1998). Estimation of Product Category Sales Responsiveness to Allocated Shelf Space. International Journal of Research in Marketing, pp. 443-457.