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Using store-level scanner
data, the authors investigate the effect of retail store
price promotion, featuring, and displays on sales of brands
of disposable diapers within a city. A hierarchical,
cross-sectional, and time-series modeling procedure is used
to identify the competitive structure among retail stores
within a test market city. Models are developed for pooled
store pairs to investigate the effect of promotion on store
substitution. The specification of these models is based on
findings from within-store brand substitution, followed by
featuring and displays. Similarly, these activities produced
store substitution in certain instances. However which
specific promotional variables are significant and the
magnitude of the effect are a function of the geographic
proximity of the stores.
Journal of Marketing Research, Vol. 25 (May 1998)
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