ENG ELC 220 Lecture Notes - Lecture 9: Habituation, Product Type, Stockout
23 Oct 2020
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Document Summary
Summary eisend shelf space elasticity: a meta-analysis. Shelf space elasticity: the ratio of additional sales to additional space allocated in retail settings. The magnitude of the elasticity is assumed to depend on the characteristics of the product, the store, the direction and amount of the variation of shelf space, and on methodological factors. Most important findings influences on shelf space elasticity: product and shelf characteristics. Average observed shelf space elasticity is 0. 17 varies across categories: lowest: commodities & staples (grundnahrungsmittel); highest: impulse buys. Relationship between shelf space change and elasticity provides info about customer response: a shelf space increase results in greater elasticity estimates than a shelf space reduction, store characteristics. In larger stores, difference btw elasticities for brand vs. category is greater than in small stores. Shelf space allocated to an item influences the item"s sales purchased more frequently: chance of oos and reshelving frequently decreases and total sales increase.
