An Empirical Investigation of Spatial Externalities in Product Arrangements on Retail Shelves

Voleti, S (2014) An Empirical Investigation of Spatial Externalities in Product Arrangements on Retail Shelves. Working Paper. SSRN. (Submitted)

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Abstract

A product's position on the shop shelf relative to other products in the category is an important yet understated factor affecting product demand. We present a parametric demand model that interprets the location of shelf facings as a set of (potentially irregular) lattice data and thereafter deploy spatial econometric techniques to (a) jointly estimate shelf position dependent demand parameters for all the stock keeping units (SKUs) in the focal category, and (b) develop an understanding of the nature of position-effects on SKU sales. In particular, we empirically investigate the (a) existence, (b) source, (c) range, (d) directionality, and (e) monetary value of spatial externalities in product demand.

Affiliation: Indian School of Business
ISB Creators:
ISB CreatorsORCiD
Voleti, Shttp://orcid.org/0000-0002-6858-014X
Item Type: Monograph (Working Paper)
Uncontrolled Keywords: Spatial Externalities, SAR model, Planograms, Position Effects
Subjects: Marketing
Depositing User: Mohan Dass
Date Deposited: 15 Apr 2019 06:14
Last Modified: 15 Apr 2019 06:14
URI: http://eprints.exchange.isb.edu/id/eprint/835
Publisher URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_i...
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