Spatial mapping of price competition using logit-type market share models and store-level scanner-data

This paper proposes a methodology to obtain reliable spatial maps of price competition using store-level scanner data. Specifically, a procedure to obtain a symmetric matrix of similarities between brands considering their substitutability depending on price variations is proposed. The matrix is der...

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Published in:The Journal of the Operational Research Society 2009-01, Vol.60 (1), p.52-62
Main Authors: González-Benito, Ó, Martínez-Ruiz, M P, Molla-Descals, A
Format: Article
Language:English
Subjects:
Analysis
Applied sciences
Asymmetry
Awards & honors
Brands
Brandy
Business and Management
Case-Oriented Paper
Case-Oriented Papers
Competition
competitive maps
Consumer behavior
Consumers
Coordinate systems
cross-elasticity
Economic competition
Elasticity of demand
Exact sciences and technology
Financial market structures
Firm modelling
Management
Market competition
Market prices
Market share
Market shares
market structure
Marketing
Operational research and scientific management
Operational research. Management science
Operations Research/Decision Theory
Price elasticity
price rivalry
Prices
Research methodology
Scanners
store-level scanner data
Studies
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cited_by cdi_FETCH-LOGICAL-c467t-cdc0065c32ba2bb642a247a975b14bff95cc460219a29c7963ac05aba320857c3
cites cdi_FETCH-LOGICAL-c467t-cdc0065c32ba2bb642a247a975b14bff95cc460219a29c7963ac05aba320857c3
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creator González-Benito, Ó
Martínez-Ruiz, M P
Molla-Descals, A
description This paper proposes a methodology to obtain reliable spatial maps of price competition using store-level scanner data. Specifically, a procedure to obtain a symmetric matrix of similarities between brands considering their substitutability depending on price variations is proposed. The matrix is derived from a market response model where price cross-effects are split into two components. The first component accounts for the fact that price variation in one brand can have different effects to price variation in other brands (ie j → j′≠j′ → j). The second component accounts for the fact that the price of each brand can have different effects across competing brands (ie j → j′≠j → j ″ ). The matrix is obtained by imposing symmetry on this second component of price cross-effects. The parameterization of this symmetric matrix of similarities as the distances between the spatial representations of brands allows us to obtain the positioning maps. The proposed approach is illustrated through an empirical application.
doi_str_mv 10.1057/palgrave.jors.2602524
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subjects Analysis
Applied sciences
Asymmetry
Awards & honors
Brands
Brandy
Business and Management
Case-Oriented Paper
Case-Oriented Papers
Competition
competitive maps
Consumer behavior
Consumers
Coordinate systems
cross-elasticity
Economic competition
Elasticity of demand
Exact sciences and technology
Financial market structures
Firm modelling
Management
Market competition
Market prices
Market share
Market shares
market structure
Marketing
Operational research and scientific management
Operational research. Management science
Operations Research/Decision Theory
Price elasticity
price rivalry
Prices
Research methodology
Scanners
store-level scanner data
Studies
title Spatial mapping of price competition using logit-type market share models and store-level scanner-data
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