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Author:Bronnenberg, B. J.
Mahajan, V.
Title:Unobserved Retailer Behavior in Multimarket Data: Joint Spatial Dependence in Market Shares and Promotion Variables
Journal:Marketing Science
2001 : SUMMER, VOL. 20:3, p. 284-299
Index terms:RETAILING
MARKET SHARE
PROMOTION
Language:eng
Abstract:In this paper, the authors propose a solution to this inference problem using the fact that retailers have trade territories consisting of multiple contiguous markets. This implies that the unobserved actions of retailers cause a measurable spatial dependence among the marketing variables. The intuition behind the authors' approach is that by accounting for this spatial dependence, the authors account for the effects of the retailer's behavior. In this context, the authors' study hopes to make the following contributions at the core of which lies the above intuition. The authors separate the market response effect from the reverse retailer effect by computing responses to price and promotion net of any spatial-and therefore retailer-influence.
SCIMA record nr: 229849
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