Breakdown of price-elasticity in retail with the use of scanned data

Breakdown of price-elasticity in retail with the use of scanned data

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Article ID: iaor2009398
Country: Brazil
Volume: 25
Issue: 2
Start Page Number: 201
End Page Number: 217
Publication Date: May 2005
Journal: Pesquisa Operacional
Authors:
Keywords: retailing
Abstract:

This article focuses on the estimation of the total price-elasticity of demand, decomposed in brand choice and quantity price-elasticity, and it discusses the implications of such decomposition for a specific product category, using a scanner data sample of Brazilian households. Two models were used: the brand choice decision was modeled through the conditional logit based on household utility maximization; the decision of how much to buy was modeled through classical linear regressions.

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