Non Linear Price Elasticities
- Editore:
VDM Verlag
- EAN:
9783639163117
- ISBN:
3639163117
- Pagine:
- 316
- Formato:
- Paperback
- Lingua:
- Tedesco
Descrizione Non Linear Price Elasticities
Price elasticities and cross-price elasticities havetypically been assumed to be constant for all pricechanges, when modelling market shares. Yet there isincreasing evidence that deep price cuts and heavypromotions have a disproportionate effect, whichdepends on where a brand is positioned in the market.In this book, the breakfast cereal market is beingstudied. Weekly scanner data were analysed usingmultilevel modeling methods to provide a completeunderstanding of this market. The effects of pricechanges and promotions are estimated by using dummyvariables for own and competitive products' pricechanges and promotions for the product modelled.Price decreases and price increases are modelledseparately to find out whether consumers react indifferent ways to price increases and pricedecreases. The results show strong evidence that thepercentage change in price has a non-linear effect onthe percentage change in share for the own priceeffects. This book is useful for graduate andupper-level undergraduate students and researchers inMarketing Research.
