Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types

56 Pages Posted: 2 Mar 2018 Last revised: 1 Dec 2019

See all articles by Pranav Jindal

Pranav Jindal

UNC Kenan-Flagler Business School

Ting Zhu

Purdue University - Krannert School of Management

Pradeep K. Chintagunta

University of Chicago

Sanjay K. Dhar

University of Chicago - Marketing Management

Multiple version iconThere are 2 versions of this paper

Date Written: Noveber 27, 2019

Abstract

We study differences in the effects of prices, non-price promotions, and brand line length on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types. Together, these provide predictions on how marketing mix variables differentially impact brand shares at various retail formats. We use Nielsen Homescan and 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. We then describe how our findings linking the effects of marketing mix variables with different retail formats has implications for brand manufacturers.

Keywords: retailing, brand share, supermarkets, mass merchandisers, drug stores, prices, line length, marketing mix, shopping costs

JEL Classification: M310, L11, D4

Suggested Citation

Jindal, Pranav and Zhu, Ting and Chintagunta, Pradeep K. and Dhar, Sanjay K., Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types (Noveber 27, 2019). Available at SSRN: https://ssrn.com/abstract=3127580 or http://dx.doi.org/10.2139/ssrn.3127580

Pranav Jindal (Contact Author)

UNC Kenan-Flagler Business School ( email )

Chapel Hill, NC 27599
United States

Ting Zhu

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

Pradeep K. Chintagunta

University of Chicago ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-8015 (Phone)
773-702-0458 (Fax)

Sanjay K. Dhar

University of Chicago - Marketing Management ( email )

Rosenwald 331C
Chicago, IL 60637
United States
773-702-3005 (Phone)
773-702-0458 (Fax)

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