IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v23y2007i4p583-597.html
   My bibliography  Save this article

Economic evaluation of shelf-space management in grocery stores

Author

Listed:
  • Chanjin Chung

    (Associate Professor, Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078)

  • Todd M. Schmit

    (Assistant Professor, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)

  • Diansheng Dong

    (Research Associate, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)

  • Harry M. Kaiser

    (Professor, Department of Applied Economics and Management, Cornell University, Ithaca, NY, 14853)

Abstract

Recently, many commodity groups have shifted promotion expenditures from generic advertising to non-advertising activities such as in-store promotion programs. Accordingly, corresponding evaluation methods need to be developed to identify the benefits of these non-advertising programs. We develop a general framework to assess product sales performance of in-store shelf-space management programs in retail stores. The framework was applied to the evaluation of dairy case management programs in the Northwestern Hudson Valley market, New York. Simulation results on fluid milk product sales indicate that preferred product locations vary between smaller convenience stores and larger supermarket retailers. On average, the dairy case management program was estimated to improve product sales 6 to 10% at the retailer level. [Econlit subject codes: M300, Q130] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 583-597, 2007.

Suggested Citation

  • Chanjin Chung & Todd M. Schmit & Diansheng Dong & Harry M. Kaiser, 2007. "Economic evaluation of shelf-space management in grocery stores," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 583-597.
    • Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:583-597
    DOI: 10.1002/agr.20141
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20141
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.20141?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
    ---><---

    References listed on IDEAS

    as
    1. Hoyer, Wayne D, 1984. "An Examination of Consumer Decision Making for a Common Repeat Purchase Product," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(3), pages 822-829, December.
    2. McLaughlin, Edward W. & Perosio, Debra J., 1996. "The Role of the Supermarket Buyer," Research Bulletins 122826, Cornell University, Department of Applied Economics and Management.
    3. Schmit, Todd M. & Kaiser, Harry M. & Chung, Chanjin, 2004. "The Dairy Case Management Program: Does It Mooove More Milk? A Case Study of the Northwestern Hudson Valley Market," Research Bulletins 122093, Cornell University, Department of Applied Economics and Management.
    4. Lenz, John E. & Forker, Olan D. & Hurst, Susan J., 1991. "U.S. Commodity Promotion Organizations: Objectives, Activities, and Evaluation Methods," Research Bulletins 123097, Cornell University, Department of Applied Economics and Management.
    5. Schmit, Todd M. & Chung, Chanjin & Kaiser, Harry M., 2006. "The Dairy Case Management Program: Does It Mooove More Milk?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 21(2), pages 1-6.
    6. repec:dau:papers:123456789/1757 is not listed on IDEAS
    7. Pierre Desmet & Valérie Renaudin, 1998. "Estimation of Product Category Sales Responsiveness to Allocated Shelf Space," Post-Print halshs-00143451, HAL.
    8. H. Tien, 1974. "Reply," Demography, Springer;Population Association of America (PAA), vol. 11(4), pages 708-714, November.
    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. Roose, Gudrun & Vermeir, Iris, 2023. "Putting spatial product presentation cues on the map: Review and research directions," Journal of Business Research, Elsevier, vol. 155(PA).
    2. Murray, Chase C. & Talukdar, Debabrata & Gosavi, Abhijit, 2010. "Joint Optimization of Product Price, Display Orientation and Shelf-Space Allocation in Retail Category Management," Journal of Retailing, Elsevier, vol. 86(2), pages 125-136.
    3. Erica Herpen & Erjen Nierop & Laurens Sloot, 2012. "The relationship between in-store marketing and observed sales for organic versus fair trade products," Marketing Letters, Springer, vol. 23(1), pages 293-308, March.
    4. Adam, Abdulfatah & Jensen, Jørgen D. & Sommer, Iben & Hansen, Gitte L., 2017. "Does shelf space management intervention have an effect on calorie turnover at supermarkets?," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 311-318.
    5. Monika Matušovičová & Martin Kuchta & Monika Stanková, 2022. "Improvement in Customer Experience Through the Creation of Virtual Brand Communities," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 34(1), pages 79-92.

    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. Els Breugelmans & Katia Campo & Els Gijsbrechts, 2007. "Shelf sequence and proximity effects on online grocery choices," Marketing Letters, Springer, vol. 18(1), pages 117-133, June.
    2. Berger, A. & Grigoriev, A. & van Loon, J., 2008. "Price strategy implementation," Research Memorandum 035, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. Parker, Jeffrey R. & Lehmann, Donald R., 2011. "When Shelf-Based Scarcity Impacts Consumer Preferences," Journal of Retailing, Elsevier, vol. 87(2), pages 142-155.
    4. Eisend, Martin, 2014. "Shelf space elasticity: A meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 168-181.
    5. Kasper, J.D.P., 2005. "The culture of market oriented organisations," Research Memorandum 052, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    6. Hübner, Alexander H. & Kuhn, Heinrich, 2012. "Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management," Omega, Elsevier, vol. 40(2), pages 199-209, April.
    7. Adam, Abdulfatah & Jensen, Jørgen D. & Sommer, Iben & Hansen, Gitte L., 2017. "Does shelf space management intervention have an effect on calorie turnover at supermarkets?," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 311-318.
    8. Summers, Teresa A. & Hebert, Paulette R., 2001. "Shedding some light on store atmospherics: influence of illumination on consumer behavior," Journal of Business Research, Elsevier, vol. 54(2), pages 145-150, November.
    9. Noble, Stephanie M. & Lee, Kang Bok & Zaretzki, Russell & Autry, Chad, 2017. "Coupon clipping by impoverished consumers: Linking demographics, basket size, and coupon redemption rates," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 553-571.
    10. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.
    11. Melis, Kristina & Campo, Katia & Lamey, Lien & Breugelmans, Els, 2016. "A Bigger Slice of the Multichannel Grocery Pie: When Does Consumers’ Online Channel Use Expand Retailers’ Share of Wallet?," Journal of Retailing, Elsevier, vol. 92(3), pages 268-286.
    12. Lee, Seunghwan & Kim, Yukyoum & Heere, Bob, 2018. "Sport team emotion: Conceptualization, scale development and validation," Sport Management Review, Elsevier, vol. 21(4), pages 363-376.
    13. Rahkovsky, Ilya & Lin, Biing-Hwan & Lin, Chung-Tung Jordan & Lee, Jonq-Ying, 2013. "Effects of the Guiding Stars Program on purchases of ready-to-eat cereals with different nutritional attributes," Food Policy, Elsevier, vol. 43(C), pages 100-107.
    14. Sahay, Arvind, 2013. "A Customer Oriented Approach To Identifying Competitive Advantage," IIMA Working Papers WP2013-05-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    15. Andrew Lim & Brian Rodrigues & Xingwen Zhang, 2004. "Metaheuristics with Local Search Techniques for Retail Shelf-Space Optimization," Management Science, INFORMS, vol. 50(1), pages 117-131, January.
    16. Shuk Ying Ho & David Bodoff & Kar Yan Tam, 2011. "Timing of Adaptive Web Personalization and Its Effects on Online Consumer Behavior," Information Systems Research, INFORMS, vol. 22(3), pages 660-679, September.
    17. Bianchi-Aguiar, Teresa & Hübner, Alexander & Carravilla, Maria Antónia & Oliveira, José Fernando, 2021. "Retail shelf space planning problems: A comprehensive review and classification framework," European Journal of Operational Research, Elsevier, vol. 289(1), pages 1-16.
    18. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    19. Remeikiene Rita, 2015. "Evaluation of Self-Employment Development Factors: Latvian Case," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 27(1), pages 5-11, December.
    20. Sofronis Clerides & Pascal Courty, 2017. "Sales, Quantity Surcharge, and Consumer Inattention," The Review of Economics and Statistics, MIT Press, vol. 99(2), pages 357-370, May.

    More about this item

    Statistics

    Access and download statistics

    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:wly:agribz:v:23:y:2007:i:4:p:583-597. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.