IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v61y2021ics0969698921000990.html
   My bibliography  Save this article

SKU performance and distribution: A large-scale analysis of the role of product characteristics with store scanner data

Author

Listed:
  • Hirche, Martin
  • Greenacre, Luke
  • Nenycz-Thiel, Magda
  • Loose, Simone
  • Lockshin, Larry

Abstract

This study investigates the relationship between distribution and market share across various consumer packaged goods (CPG) categories and specific stock keeping units (SKUs). The study identifies product-related characteristics that result in substantive deviations above or below market shares predicted by the distribution – market share relationship. The association of product price, brand (private label [PL] v. national brand [NB]) and pack size with above (or below) expected market share for a given distribution level is analysed. Results indicate larger pack sizes, PL and medium price levels result in market share above what would be predicted by an SKU’s distribution. This presents a source for competitive advantage in markets driven by push–pull dynamics.

Suggested Citation

  • Hirche, Martin & Greenacre, Luke & Nenycz-Thiel, Magda & Loose, Simone & Lockshin, Larry, 2021. "SKU performance and distribution: A large-scale analysis of the role of product characteristics with store scanner data," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921000990
    DOI: 10.1016/j.jretconser.2021.102533
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698921000990
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2021.102533?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard Friberg & Mark Sanctuary, 2017. "The Effect of Retail Distribution on Sales of Alcoholic Beverages," Marketing Science, INFORMS, vol. 36(4), pages 626-641, July.
    2. Peter C. B. Phillips & Xiaohu Wang & Yonghui Zhang, 2019. "HAR Testing for Spurious Regression in Trend," Econometrics, MDPI, vol. 7(4), pages 1-28, December.
    3. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    4. Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
    5. Edwin M. M. Ortega & Artur J. Lemonte & Gauss M. Cordeiro & Vicente G. Cancho & Fábio L. Mialhe, 2018. "Heteroscedastic log-exponentiated Weibull regression model," Journal of Applied Statistics, Taylor & Francis Journals, vol. 45(3), pages 384-408, February.
    6. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    7. Yu, Ping & Phillips, Peter C.B., 2018. "Threshold regression with endogeneity," Journal of Econometrics, Elsevier, vol. 203(1), pages 50-68.
    8. Joffre Swait & Rick L. Andrews, 2003. "Enriching Scanner Panel Models with Choice Experiments," Marketing Science, INFORMS, vol. 22(4), pages 442-460, September.
    9. Olbrich, Rainer & Jansen, Hans Christian & Hundt, Michael, 2017. "Effects of pricing strategies and product quality on private label and national brand performance," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 294-301.
    10. Amit K. Ghosh, 2017. "The influence of price and promotion on package size propensity," American Journal of Business, Emerald Group Publishing Limited, vol. 32(2), pages 93-103, June.
    11. Sam W & Peijin X & Ching RY & Kelly HZ, 2018. "Improved EBLUPs in Mixed-Effects Regression Models," Biostatistics and Biometrics Open Access Journal, Juniper Publishers Inc., vol. 4(4), pages 78-86, January.
    12. David J. Reibstein & Paul W. Farris, 1995. "Market Share and Distribution: A Generalization, a Speculation, and Some Implications," Marketing Science, INFORMS, vol. 14(3_supplem), pages 190-202.
    13. Yao, Jun & Oppewal, Harmen, 2016. "Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size," Journal of Retailing, Elsevier, vol. 92(1), pages 109-121.
    14. Paul Farris & James Olver & Cornelis De Kluyver, 1989. "The Relationship Between Distribution and Market Share," Marketing Science, INFORMS, vol. 8(2), pages 107-128.
    15. ter Braak, Anne & Geyskens, Inge & Dekimpe, Marnik G., 2014. "Taking private labels upmarket: Empirical generalizations on category drivers of premium private label introductions," Journal of Retailing, Elsevier, vol. 90(2), pages 125-140.
    16. Phillips, Peter C.B. & Shi, Shu-Ping, 2018. "Financial Bubble Implosion And Reverse Regression," Econometric Theory, Cambridge University Press, vol. 34(4), pages 705-753, August.
    17. Baty, Florent & Ritz, Christian & Charles, Sandrine & Brutsche, Martin & Flandrois, Jean-Pierre & Delignette-Muller, Marie-Laure, 2015. "A Toolbox for Nonlinear Regression in R: The Package nlstools," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 66(i05).
    18. Maas, Cora J. M. & Hox, J.J.Joop J., 2004. "The influence of violations of assumptions on multilevel parameter estimates and their standard errors," Computational Statistics & Data Analysis, Elsevier, vol. 46(3), pages 427-440, June.
    19. Ramalingam Shanmugam & Arashi M & Salarzadeh Jenatabadi H, 2018. "Longitudinal Data Analysis Using Liu Regression," Biostatistics and Biometrics Open Access Journal, Juniper Publishers Inc., vol. 7(5), pages 102-105, July.
    20. Parment, Anders, 2008. "Distribution strategies for volume and premium brands in highly competitive consumer markets," Journal of Retailing and Consumer Services, Elsevier, vol. 15(4), pages 250-265.
    21. Wilbur, Kenneth C. & Farris, Paul W., 2014. "Distribution and Market Share," Journal of Retailing, Elsevier, vol. 90(2), pages 154-167.
    22. Nash, John C. & Varadhan, Ravi, 2011. "Unifying Optimization Algorithms to Aid Software System Users: optimx for R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 43(i09).
    23. Robert P. Rooderkerk & Harald J. van Heerde & Tammo H. A. Bijmolt, 2013. "Optimizing Retail Assortments," Marketing Science, INFORMS, vol. 32(5), pages 699-715, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ohlwein, Martin, 2022. "Same but different - The effect of the unit of measure on the valuation of a unit price," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    2. Sharp, Byron & Dawes, John & Victory, Kirsten, 2024. "The market-based assets theory of brand competition," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Hirche, Martin & Farris, Paul W. & Greenacre, Luke & Quan, Yiran & Wei, Susan, 2021. "Predicting Under- and Overperforming SKUs within the Distribution–Market Share Relationship," Journal of Retailing, Elsevier, vol. 97(4), pages 697-714.
    4. Antonis A. Michis, 2023. "Retail distribution evaluation in brand-level sales response models," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 366-378, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hirche, Martin & Farris, Paul W. & Greenacre, Luke & Quan, Yiran & Wei, Susan, 2021. "Predicting Under- and Overperforming SKUs within the Distribution–Market Share Relationship," Journal of Retailing, Elsevier, vol. 97(4), pages 697-714.
    2. Antonis A. Michis, 2023. "Retail distribution evaluation in brand-level sales response models," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 366-378, September.
    3. Richard Friberg & Mark Sanctuary, 2017. "The Effect of Retail Distribution on Sales of Alcoholic Beverages," Marketing Science, INFORMS, vol. 36(4), pages 626-641, July.
    4. Sharp, Byron & Dawes, John & Victory, Kirsten, 2024. "The market-based assets theory of brand competition," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    5. Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & Zambaldi, Felipe & Neves, Marcos Fava, 2021. "Distribution effectiveness through full- and self-service channels under economic fluctuations in an emerging market," Journal of Retailing, Elsevier, vol. 97(4), pages 545-560.
    6. Ailawadi, Kusum L. & Farris, Paul W., 2017. "Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions," Journal of Retailing, Elsevier, vol. 93(1), pages 120-135.
    7. Franses, Philip Hans & Kloek, Teun & Lucas, Andre, 1998. "Outlier robust analysis of long-run marketing effects for weekly scanning data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 293-315, November.
    8. Gregory, Allan W. & McCurdy, Thomas H., 1986. "The unbiasedness hypothesis in the forward foreign exchange market: A specification analysis with application to France, Italy, Japan, the United Kingdom and West Germany," European Economic Review, Elsevier, vol. 30(2), pages 365-381, April.
    9. Reischmann, Markus, 2016. "Creative accounting and electoral motives: Evidence from OECD countries," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 243-257.
    10. Towfiqul Islam Khan & Mashfique Ibne Akbar, 2015. "Illicit Financial Flow in view of Financing the Post-2015 Development Agenda," Southern Voice Occasional Paper 25, Southern Voice.
    11. Potrafke, Niklas, 2019. "Electoral cycles in perceived corruption: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 215-224.
    12. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    13. Joachim Zietz, 2006. "Detecting neglected parameter heterogeneity with Chow tests," Applied Economics Letters, Taylor & Francis Journals, vol. 13(6), pages 369-374.
    14. Eric T. Anderson & Duncan I. Simester, 2001. "Are Sale Signs Less Effective When More Products Have Them?," Marketing Science, INFORMS, vol. 20(2), pages 121-142, March.
    15. McDonald, John, 2009. "Using least squares and tobit in second stage DEA efficiency analyses," European Journal of Operational Research, Elsevier, vol. 197(2), pages 792-798, September.
    16. Olivier Rubel & Prasad A. Naik, 2017. "Robust Dynamic Estimation," Marketing Science, INFORMS, vol. 36(3), pages 453-467, May.
    17. Marusia Ivanova, 2007. "Genesis and Evolution of Market Share Predictive Models," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 117-148.
    18. Crespí-Cladera, Rafel & Pascual-Fuster, Bartolomé, 2014. "Does the independence of independent directors matter?," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 116-134.
    19. Barron, Kai & Parry, Charles D.H. & Bradshaw, Debbie & Dorrington, Rob & Groenewald, Pam & Laubscher, Ria & Matzopoulos, Richard, 2022. "Alcohol, Violence and Injury-Induced Mortality: Evidence from a Modern-Day Prohibition," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Online Ea, pages 1-44.
    20. Christopher Winship & Larry Radbill, 1994. "Sampling Weights and Regression Analysis," Sociological Methods & Research, , vol. 23(2), pages 230-257, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921000990. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.