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Market-Based Solutions to Vital Economic Issues


Kenan Institute 2023 Grand Challenge: Workforce Disrupted
Market-Based Solutions to Vital Economic Issues
Nov 27, 2019

Marketing Mix Response Across Retail Formats – The Role Of Shopping Trip Types


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.

Note: Research papers posted on SSRN, including any findings, may differ from the final version chosen for publication in academic journals.

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