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Sales by multi-product retailers: a comment

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  • Jens-Peter Loy

    (Department of Agricultural Economics, University of Kiel, Kiel, Germany)

  • Christoph R. Weiss

    (Department of Economics, Vienna University of Economics and Business Administration, Vienna, Austria)

Abstract

Immanent to the retail business is its multiproduct nature. In a recent issue of this journal Richards (2006) introduces a multiproduct model for perishable food items. Richards concludes that depth and breadth of sales are complementary marketing tools to increase store sales. He also provides empirical support for this hypothesis. We will show in the following that Richards' model does not suggest a complementarity between depth and breadth of sales. Instead, these tools are substitutes in his model. Therefore, the interpretation of his empirical result has to be reconsidered. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Jens-Peter Loy & Christoph R. Weiss, 2009. "Sales by multi-product retailers: a comment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 513-515.
    • Handle: RePEc:wly:mgtdec:v:30:y:2009:i:8:p:513-515
    DOI: 10.1002/mde.1467
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    References listed on IDEAS

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    1. Levy, Daniel & Bergen, Mark & Dutta, Shantanu & Venable, Robert, 1997. "The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 112(3), pages 791-824.
    2. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-659, September.
    3. Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M. & Villas-Boas, Sofia Berto, 2008. "Sales: Tests of theories on causality and timing," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1257-1273, November.
    4. Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M. & Villas-Boas, Sofia Berto, 2008. "Sales: Tests of theories on causality and timing," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1257-1273, November.
    5. Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
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    Cited by:

    1. Hoffman, Angela & Senkler, Heike, 2011. "Interformat price competition of multi-product retailers: Evidence for German grocery retailing," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114533, European Association of Agricultural Economists.
    2. Carlo Russo & Rachael Goodhue, 2018. "Farmgate prices, retail prices, and supermarkets' pricing decisions: An integrated approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 24-43, December.

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