Point-of-Sale Marketing Mix and Brand Performance – The Moderating Role of Retail Format and Brand Type
54 Pages Posted: 2 Mar 2018 Last revised: 5 Dec 2018
Date Written: November 29, 2018
In this paper, we study the role of point-of-sale (POS) marketing mix variables in explaining variation in brand shares (i) at different retail formats, and (ii) across national and store brands. Different store formats attract different types of shopping trips, and different brand types differ in consumer's quality uncertainty and cross-category spillovers in learning through consumption. Together, these have implications for how POS variables such as prices, features and assortment differentially impact brand shares at different retail formats, and of different brand types, and the corresponding implications for retailers and manufacturers. We use Nielsen store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in over 200 Nielsen markets. Consistent with theoretical predictions, we find that brand shares at convenience (drug) stores are least (most) sensitive to price and feature changes. Further, brand shares at convenience stores (supermarkets) are most (least) sensitive to changes in assortment. Interestingly, the two different assortment metrics we consider - number of sizes and number of variants per size (packaging, flavors, fragrance, etc.) - have a differential impact on brand shares across formats and on different brand types, which as we show, has important consequences for manufacturer profits, and for retailers reallocating national and store brand assortment at their stores.
Keywords: retailing, brand share, supermarkets, mass merchandisers, drug stores, prices, assortment, marketing mix
JEL Classification: M310, L11, D4
Suggested Citation: Suggested Citation