Push Vs . Pull : the Case
نویسندگان
چکیده
Purchase shares of major national-brands in consumer packaged-goods industries vary substantially across stores, both between markets and within markets. This paper measures the extent to which this variation in national-brand purchase shares depends on store-specific supply decisions, which are traditionally within the purview of trade marketing. We first demonstrate the extent to which purchase shares of the top two national brands across 6 different categories vary across markets, accounts (defined as chain-market interactions) and stores: market-level variation accounts for almost 55% of the variation in market shares across stores, while chain-level and store-level variation explain an additional 20% and 9% of the variation, respectively. We then measure the extent to which a store’s assortment, pricing, feature and display decisions affect the purchase shares of the top national brands. We find that relative pricing and assortment shares are the two most-important push factors in determining a brand’s purchase share. Finally, we measure the extent to which the variation in top national-brand market shares across markets and stores is determined by these storespecific supply factors. We find that, on average, approximately 50% of the variation across stores, as well as 50% of the variation across markets, can be attributed to these push factors. These results demonstrate the importance of supply-side trade marketing on market shares relative to demandside consumer marketing. Given a literature that has emphasized the strong persistence of market shares across time, our results suggest that a significant mechanism for this persistence must be enacted through store-level supply effects.
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