Sanjay K. Dhar
James M. Kilts, Jr. Professor of Marketing
James M. Kilts, Jr. Professor of Marketing
Sanjay K. Dhar studies strategic marketing management, advanced marketing strategy, brand management, new product development, pricing strategy, promotion strategy, advertising strategy, product placement strategy, retail price advertising strategies, retail management best practices, consumer and retail sales promotions, trade promotions, private labels, category management, loyalty reward programs, EDLP pricing, assortment management, purchase incidence, and brand choice. His research has been selected as a finalist for the 2012 William O’Dell Award, which awards an article published in the Journal of Marketing Research in the last 5 years that has made the most significant long-term contribution to marketing theory, methodology, and/or practice, awarded the 2008 Paul Green Award which recognizes the best article published in the Journal of Marketing Research, the John D. C. Little Award in 1995 for the best paper in marketing published in an INFORMS journal and he was a runner-up for the Davidson Award in 2003 for the best paper published in the Journal of Retailing. Dhar has published articles in the Journal of Political Economy, Marketing Science, the Journal of Marketing Research, the Journal of Marketing, the Journal of Retailing, Management Science, Marketing Letters, Quantitative Marketing and Economics, and Pricing Theory and Practice.
In 2010, Veritas Prep listed Dhar as one of 6 “Must Have” professors at Chicago Booth based on student input. In 2006, the Economic Times in India identified Dhar as one of twelve "Indians who have made a global impact on marketing research and thought." He received the 2017 Faculty Excellence Teaching Award voted by Evening and Weekend MBA students, the 2012 Hillel Einhorn Teaching Award voted by executive MBA students in North America, the 2008 Hillel Einhorn Teaching Award voted by executive MBA students in Asia, the McKinsey Award for Teaching Excellence in 2000 awarded once every 2 years, was cited among the outstanding faculty in Business Week's Guide to Best Business Schools (McGraw-Hill, 1997, 1999, and 2001), and in 1994 he was awarded the Emory Williams Teaching Award by students for his outstanding teaching performance. "I stress the importance of learning fundamentals in my classes, which enables my students to address any marketing problem - no matter how complex - because they can apply the principles to dissect the problem."
Dhar received a bachelor's degree in technology (mechanical engineering) with honors from the Indian Institute of Technology of India in 1983. His MBA is from the Indian Institute of Management, India. He also worked in several management positions for Lipton India Limited, a subsidiary of Unilever. He then came to the United States, where he studied at the University of California in Los Angeles. He earned a PhD in management in 1992. He has been a Chicago Booth faculty member since 1992.
Dhar also has extensive industry based executive teaching and consulting experience and regularly advises firm on strategic marketing, pricing and new product development.
In addition to teaching and research, Dhar enjoys working with his two children and taking care of their several pets, as well as his three tropical fish aquariums.
Advertising strategy; brand management; consumer promotion evaluation and planning (bonus buys versus in-store coupons, package coupons, free-standing insert (FSI) coupons, cross-ruff coupons); e-commerce strategy; marketing strategy; new product development, management and strategy; product placement strategy; retail management best practices (promotion and merchandise planning and evaluation, store formats, impact of private labels, efficient consumer response (ECR) initiatives, category management, efficient assortment management, loyalty reward programs, every day low pricing (EDLP); trade promotions.
“Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales”, 2022, Marketing Science 41(6): 1163-1180. (with Ali Goli, Simha Mummalaneni and Pradeep Chintagunta) https://doi.org/10.1287/mksc.2022.1362
“Retail Store Formats, Competition and Shopper Behavior: A Systematic Review”, 2022, Volume 98, Issue 1, 71-91 Journal of Retailing. (with Andre Bonferer and Pradeep Chintagunta) https://doi.org/10.1016/j.jretai.2022.02.006.
"Marketing Mix Response across Retail Formats - The Role of Shopping Trip Types," 2020, 84(2), 114-132 (with P. Jindal, T. Zhu and P. Chintagunta)
“The Effect of the WIC Program on Consumption Patterns in the Cereal Category”, 2018, Quantitative Marketing and Economics, Volume 16, 1 (March), 79-109 (with Romana Khan and Ting Zhu)
For a listing of research publications, please visit the university library listing page.
REVISION: Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales
Date Posted:Tue, 01 Feb 2022 21:16:00 -0600
We evaluate whether and how branded TV product placement affects sales for cigarette brands. We use data on product placement from TV shows and data on retail sales of cigarettes to estimate a demand model that incorporates the level of product placement exposure for each cigarette brand. We find that product placement has a small yet positive and statistically significant effect on both own-brand sales and competitor-brand sales: both of these elasticities are roughly 0.02. These results indicate that cigarette product placement affects demand for individual cigarette brands and that it also leads to greater overall cigarette use. This issue is of particular importance to policymakers because product placement is one of the few remaining ways that cigarette brands can reach a mass audience. To illustrate how these results could be used by policymakers, we use our model estimates to evaluate how cigarette sales would be affected by two hypothetical kinds of regulations. Limiting ...
REVISION: Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales
Date Posted:Tue, 04 Jan 2022 19:41:16 -0600
We evaluate whether and how branded TV product placement affects sales for cigarette brands. We use data on product placement from TV shows and data on retail sales of cigarettes to estimate a demand model that incorporates the level of product placement exposure for each cigarette brand. We find that product placement has a small yet positive and statistically significant effect on both own-brand sales and competitor-brand sales: both of these elasticities are roughly 0.02. These results indicate that cigarette product placement affects demand for individual cigarette brands and that it also leads to greater overall cigarette use. This issue is of particular importance to policymakers because product placement is one of the few remaining ways that cigarette brands can reach a mass audience. To illustrate how these results could be used by policymakers, we use our model estimates to evaluate how cigarette sales would be affected by two hypothetical kinds of regulations. Limiting ...
REVISION: Do Households' Budget Allocations Vary with Economic Factors? Evidence from Nielsen Data
Date Posted:Sat, 16 Oct 2021 01:16:46 -0500
How do households' joint budget allocations across different store types (grocery vs. discount vs. warehouse vs other stores), category types (food vs. non food) and brand types (private label vs. national brand) change with changes to their income, wealth, employment status, household size and macro factors like the recession? We answer this question using consumer packaged goods (CPG) purchases from more than 1000 categories by a representative panel of US households over fourteen years. We measure within household effects on expenditure shares of joint bivariate (e.g., grocery-food) and trivariate (e.g. grocery-food-private label) baskets along with their effects on univariate baskets. We demonstrate that such an analysis is important for nuanced responses to changes in economic conditions by managers across the different combinations of store formats, product categories and brand types. For example, managers of national brands looking at univariate baskets would conclude that an ...
REVISION: Do Households' Budget Allocations Vary with Economic Factors? Evidence from Nielsen Data
Date Posted:Tue, 12 Oct 2021 19:38:33 -0500
How do households' joint budget allocations across different store types (grocery vs. discount vs. warehouse vs other stores), category types (food vs. non food) and brand types (private label vs. national brand) change with changes to their income, wealth, employment status, household size and macro factors like the recession? We answer this question using consumer packaged goods (CPG) purchases from more than 1000 categories by a representative panel of US households over fourteen years. We measure within household effects on expenditure shares of joint bivariate (e.g., grocery-food) and trivariate (e.g. grocery-food-private label) baskets along with their effects on univariate baskets. We demonstrate that such an analysis is important for nuanced responses to changes in economic conditions by managers across the different combinations of store formats, product categories and brand types. For example, managers of national brands looking at univariate baskets would conclude that an ...
REVISION: Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales
Date Posted:Tue, 03 Aug 2021 06:05:43 -0500
We evaluate whether and how branded TV product placement affects sales for cigarette brands. We use data on product placement from TV shows and data on retail sales of cigarettes to estimate a demand model that incorporates the level of product placement exposure for each cigarette brand. We find that product placement has a small yet positive and statistically significant effect on both own-brand sales and competitor-brand sales: both of these elasticities are roughly 0.02. These results indicate that cigarette product placement affects demand for individual cigarette brands and that it also leads to greater overall cigarette use. This issue is of particular importance to policymakers because product placement is one of the few remaining ways that cigarette brands can reach a mass audience. To illustrate how these results could be used by policymakers, we use our model estimates to evaluate how cigarette sales would be affected by two hypothetical kinds of regulations. Limiting ...
REVISION: Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Programs on Cigarette Sales
Date Posted:Tue, 06 Jul 2021 12:01:50 -0500
We evaluate whether and how branded TV product placement affects sales for cigarette brands. We use data on product placement from TV shows and data on retail sales of cigarettes to estimate a demand model that incorporates the level of product placement exposure for each cigarette brand. We find that product placement has a small yet positive and statistically significant effect on both own-brand sales and competitor-brand sales: both of these elasticities are roughly 0.02. These results indicate that cigarette product placement affects demand for individual cigarette brands and that it also leads to greater overall cigarette use. This issue is of particular importance to policymakers because product placement is one of the few remaining ways that cigarette brands can reach a mass audience. To illustrate how these results could be used by policymakers, we use our model estimates to evaluate how cigarette sales would be affected by two hypothetical kinds of regulations. Limiting ...
REVISION: Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types
Date Posted:Fri, 04 Dec 2020 03:12:46 -0600
We study differences in the effects of prices, non-price promotions, and brand line length on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types. Together, these provide predictions on how marketing mix variables differentially impact brand shares at various retail formats. We use Nielsen Homescan and store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in over 200 Nielsen markets. We then describe how our findings linking the effects of marketing mix variables with different retail formats has implications ...
REVISION: Income and Wealth Effects on Consumer Packaged Goods Purchases
Date Posted:Tue, 03 Mar 2020 05:44:06 -0600
When economic cycles cause changes in household income and wealth, consumers change their budget allocations across store formats, product categories, and brands. Using Nielsen Homescan data for the years 2004 to 2014, we investigate the impact of income and wealth changes on households' budget allocations to (i) alternative store formats; (ii) food and non-food categories; and (iii) private labels and national brands. Since budgets can be reallocated across formats, categories and brands simultaneously, we measure the causal effects on the "joint' (e.g., grocery store - food - national brand budget shares) budget allocations of households. This allows us to decompose income and wealth effects on the "marginal' (e.g., grocery store) shares, which previous literature has focused on, into those on its joint components (e.g., grocery - food - national brand, grocery - food - private label, etc.). This joint analysis reveals situations in which managers of a specific brand-type in a ...
REVISION: Income and Wealth Effects on Consumer Packaged Goods Purchases
Date Posted:Tue, 07 Jan 2020 09:16:27 -0600
When economic cycles cause changes in household income and wealth, consumers change their budget allocations across store formats, product categories, and brands. Using Nielsen Homescan data for the years 2004 to 2014, we investigate the impact of income and wealth changes on households' budget allocations to (i) alternative store formats; (ii) food and non-food categories; and (iii) private labels and national brands. Since budgets can be reallocated across formats, categories and brands simultaneously, we measure the causal effects on the "joint' (e.g., grocery store - food - national brand budget shares) budget allocations of households. This allows us to decompose income and wealth effects on the "marginal' (e.g., grocery store) shares, which previous literature has focused on, into those on its joint components (e.g., grocery - food - national brand, grocery - food - private label, etc.). This joint analysis reveals situations in which managers of a specific brand-type in a ...
REVISION: Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types
Date Posted:Sun, 01 Dec 2019 04:13:25 -0600
We study differences in the effects of prices, non-price promotions, and brand line length on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types. Together, these provide predictions on how marketing mix variables differentially impact brand shares at various retail formats. We use Nielsen Homescan and store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in over 200 Nielsen markets. We then describe how our findings linking the effects of marketing mix variables with different retail formats has implications ...
REVISION: Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types
Date Posted:Sun, 24 Nov 2019 05:50:24 -0600
We study differences in the effects of prices, non-price promotions, and assortment on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types. Together, these provide predictions on how marketing mix variables differentially impact brand shares at various retail formats. We use Nielsen Homescan and store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in over 200 Nielsen markets. We then describe how our findings linking the effects of marketing mix variables with different retail formats has implications for ...
New: The Effect of the WIC Program on Consumption Patterns in the Cereal Category
Date Posted:Tue, 12 Nov 2019 06:56:19 -0600
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is a federally-funded food assistance program for low income participants who are at nutritional risk. Beneficiaries receive vouchers for specific foods and brands, selected for their nutritional value. While the program is designed to improve nutrition, it may also induce changes in consumption behavior that persist beyond participation in the program. In this paper, we study how participation in WIC impacts the consumption patterns and preferences during and after the program. Our analysis focuses on the cereal category, in which the subsidized brands must meet certain nutritional guidelines. As expected, during the program households increase cereal consumption volume and shift their choices towards the WIC-approved brands. More interesting is that once households exit the program, the higher category consumption rate and elevated share of WIC brands persist. To understand the behavioral mechanism ...
REVISION: Marketing Mix Response Across Retail Formats - The Role of Shopping Trip Types
Date Posted:Tue, 03 Sep 2019 03:47:40 -0500
In this paper, we study the differences in the effects of marketing mix variables, such as prices, non-price promotions, and assortment, on brand shares at different retail formats. Our conceptual framework rests on the presence of fixed and variable costs of shopping and has two building blocks: (i) The trade-off between these costs has implications for the different formats visited on different types of shopping trips; and (ii) the magnitude of fixed costs, that shoppers can justify investing on different trip types, influences the marginal sensitivities of brand shares to changes in marketing mix variables on those trips. Taken together, the building blocks provide predictions on how marketing mix variables differentially impact brand shares at various retail formats. We use Nielsen Homescan and store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in ...
REVISION: Point-of-Sale Marketing Mix and Brand Performance – The Moderating Role of Retail Format and Brand Type
Date Posted:Tue, 04 Dec 2018 14:56:59 -0600
In this paper, we study the role of point-of-sale (POS) marketing mix variables in explaining variation in brand shares (i) at different retail formats, and (ii) across national and store brands. Different store formats attract different types of shopping trips, and different brand types differ in consumer's quality uncertainty and cross-category spillovers in learning through consumption. Together, these have implications for how POS variables such as prices, features and assortment differentially impact brand shares at different retail formats, and of different brand types, and the corresponding implications for retailers and manufacturers. We use Nielsen store level data from 2011-2014 and analyze the top ten spending product categories across four retail formats - convenience stores, drug stores, supermarkets and mass merchandisers, in over 200 Nielsen markets. Consistent with theoretical predictions, we find that brand shares at convenience (drug) stores are least (most) ...
REVISION: Point-of-Sale Marketing Mix and Brand Performance – The Moderating Role of Retail Format and Brand Type
Date Posted:Fri, 02 Mar 2018 06:43:03 -0600
In this paper, we study the role of point-of-sale (POS) marketing mix variables in explaining variation in brand shares (i) at different retail formats, and (ii) across national and store brands in different price tiers. Stores in different retail formats differ in their positioning, the clientele they attract, and types of shopping trips made to the store. Further, national and store brands in different price tiers differ in the quality perception, and the contracts between the retailer and the manufacturer. Together, this implies that POS variables may influence brand shares very differently in different retail formats and for different brand types, which has important implications for retailers and manufacturers. We use Nielsen store level data from 2011-2014 and analyze the top ten spending product categories spreading across four product departments - dry grocery, non-food grocery, dairy and frozen, and across four retail formats - convenience stores, drug stores, supermarkets ...
REVISION: Point-of-Sale Marketing Mix and Brand Performance - The Moderating Role of Retail Format and Brand Type
Date Posted:Wed, 21 Feb 2018 05:49:05 -0600
In this paper, we study the role of point-of-sale (POS) marketing mix variables in explaining variation in brand shares (i) at different retail formats, and (ii) across national and store brands in different price tiers. Stores in different retail formats differ in their positioning, the clientele they attract, and types of shopping trips made to the store. Further, national and store brands in different price tiers differ in the quality perception, and the contracts between the retailer and the manufacturer. Together, this implies that POS variables may influence brand shares very differently in different retail formats and for different brand types, which has important implications for retailers and manufacturers. We use Nielsen store level data from 2011-2014 and analyze the top ten spending product categories spreading across four product departments - dry grocery, non-food grocery, dairy and frozen, and across four retail formats - convenience stores, drug stores, supermarkets ...
REVISION: Brand Performance at Walmart versus Supermarkets – The Role of Marketing Mix and Consumer Format Loyalty
Date Posted:Sat, 15 Jul 2017 06:55:58 -0500
In this paper, we study the role of marketing mix variables in explaining variation in brand shares (i) across different brand types defined based on price tiers, (ii) at supermarkets and Walmart supercenters, and (iii) among loyal and non-loyal consumers of these channels. In doing so, we extend the previous literature (Bronnenberg et al. (2007) and Hwang and Thomadsen (2015)) which explores the role of geographic differences and point of sale activities in explaining variation in brand shares of top brands at supermarkets. In order to draw generalizations across categories, rather than study a subset of brands in each category, we classify brands into “premium”, “value” and “store” brands and study the relative drivers of choices of brands in these groups. We use Nielsen household data from 2011-2014 and analyze 10 product categories which account for 15% of all spending. The categories include dry grocery, non-food grocery, dairy and frozen product departments. We find that shares ...
Update: Brand Performance Across Store Formats: Beyond Walmart's Low Prices
Date Posted:Sun, 28 Aug 2016 13:59:41 -0500
We study whether certain types of brands are more likely to perform better at Walmart supercenters as compared to supermarkets. We correlate the variation in brand sales performance at these two store formats (over time and across markets) with marketing mix variables such as prices, promotions, assortments, and competition while controlling for market and time specific trends, and differences in consumers shopping at different formats. Based on data from four product categories in the Nielsen homescan panel, we consistently find that value brands perform better at Walmart supercenters, while premium brands perform better at supermarkets. We find substantial differences in assortments carried at Walmart supercenters and supermarkets. On average, assortment explains 30% of the variation in relative brand shares while prices and promotions explain 24% of the variation. Importantly, this pattern persists among consumers not loyal to either format i.e., who split their spending at ...
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Update: Food Purchases During the Great Recession
Date Posted:Sun, 28 Aug 2016 11:46:06 -0500
Using the Nielsen Homescan data, we describe what happened to household purchase behavior during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to understand how the recession impacted: households’ grocery spending in a broad cross-section of 31 food categories; prices paid and quantities bought by households in these categories; the types of outlets they made purchases in; the composition of the food basket in the choice of more expensive brands and less expensive brands and private label products; product volume purchased with retailer discounts and coupons; and, whether there were differences in these behaviors across different demographic groups. We find that during the recession, households purchased more in these food categories, and substituted to cheaper outlets and items sold on deal. However, contrary to expectations, we do not find evidence that the recession was the primary driver behind the increases in store brand share and coupon ...
New PDF Uploaded
Update: Brand History, Geography, and the Persistence of Brand Shares
Date Posted:Sun, 21 Aug 2016 03:38:55 -0500
We study persistence in the geographic variation in market shares of branded goods in consumer packaged goods industries across 50 U.S. city-markets. We match scanner data on local market shares and survey data on local quality perceptions for the largest brands in 34 consumer packaged goods industries. These data are then matched with historic information on the year and US city-market in which each brand was first launched. We find that these consumer brands have persistently higher market shares in markets closest to their respective cities-of-origin than in markets farthest from their respective cities-of-origin, where they were typically launched later. For 6 of the 34 industries, we collected more complete historic entry data with which we can determine the local order of entry among the top brands in each of the 50 U.S. city-markets. We find a persistent effect from differences in the order-of-entry of competing brands on their current relative brand shares and quality ...
New PDF Uploaded
REVISION: Brand Performance Across Store Formats: Beyond Walmart's Low Prices
Date Posted:Sat, 28 Nov 2015 00:26:09 -0600
We study whether certain types of brands are more likely to perform better at Walmart supercenters as compared to supermarkets. We correlate the variation in brand sales performance at these two store formats (over time and across markets) with marketing mix variables such as prices, promotions, assortments, and competition while controlling for market and time specific trends, and differences in consumers shopping at different formats. Based on data from four product categories in the Nielsen homescan panel, we consistently find that value brands perform better at Walmart supercenters, while premium brands perform better at supermarkets. We find substantial differences in assortments carried at Walmart supercenters and supermarkets. On average, assortment explains 30% of the variation in relative brand shares while prices and promotions explain 24% of the variation. Importantly, this pattern persists among consumers not loyal to either format i.e., who split their spending at ...
REVISION: Brand Performance Across Store Formats: Beyond Walmart's Low Prices
Date Posted:Wed, 25 Nov 2015 08:02:49 -0600
We study whether certain types of brands are more likely to perform better at Walmart supercenters as compared to supermarkets. We correlate the variation in brand sales performance at these two store formats (over time and across markets) with marketing mix variables such as prices, promotions, assortments, and competition while controlling for market and time specific trends, and differences in consumers shopping at different formats. Based on data from four product categories in the Nielsen homescan panel, we consistently find that value brands perform better at Walmart supercenters, while premium brands perform better at supermarkets. We find substantial differences in assortments carried at Walmart supercenters and supermarkets. On average, assortment explains 30% of the variation in relative brand shares while prices and promotions explain 24% of the variation. Importantly, this pattern persists among consumers not loyal to either format i.e., who split their spending at ...
New: Food Purchases During the Great Recession
Date Posted:Sat, 11 Jul 2015 06:21:25 -0500
Using the Nielsen Homescan data, we describe what happened to household purchase behavior during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to understand how the recession impacted: households’ grocery spending in a broad cross-section of 31 food categories; prices paid and quantities bought by households in these categories; the types of outlets they made purchases in; the composition of the food basket in the choice of more expensive brands and less expensive brands and private label products; product volume purchased with retailer discounts and coupons; and, whether there were differences in these behaviors across different demographic groups. We find that during the recession, households purchased more in these food categories, and substituted to cheaper outlets and items sold on deal. However, contrary to expectations, we do not find evidence that the recession was the primary driver behind the increases in store brand share and coupon ...
New: Food Purchases During the Great Recession
Date Posted:Tue, 17 Feb 2015 06:14:31 -0600
Using the Nielsen Homescan data, we describe what happened to household purchase behavior during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to understand how the recession impacted: households’ grocery spending in a broad cross-section of 31 food categories; prices paid and quantities bought by households in these categories; the types of outlets they made purchases in; the composition of the food basket in the choice of more expensive brands and less expensive brands and private label products; product volume purchased with retailer discounts and coupons; and, whether there were differences in these behaviors across different demographic groups. We find that during the recession, households purchased more in these food categories, and substituted to cheaper outlets and items sold on deal. However, contrary to expectations, we do not find evidence that the recession was the primary driver behind the increases in store brand share and coupon ...
New: Food Purchases During the Great Recession
Date Posted:Thu, 05 Feb 2015 10:36:16 -0600
Using the Nielsen Homescan data, we describe what happened to household purchase behavior during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to understand how the recession impacted: households’ grocery spending in a broad cross-section of 31 food categories; prices paid and quantities bought by households in these categories; the types of outlets they made purchases in; the composition of the food basket in the choice of more expensive brands and less expensive brands and private label products; product volume purchased with retailer discounts and coupons; and, whether there were differences in these behaviors across different demographic groups. We find that during the recession, households purchased more in these food categories, and substituted to cheaper outlets and items sold on deal. However, contrary to expectations, we do not find evidence that the recession was the primary driver behind the increases in store brand share and coupon ...
New: The Optimal Choice of Promotion Vehicles: Front-Loaded or Rear-Loaded Incentives?
Date Posted:Wed, 21 Jan 2015 08:59:24 -0600
We examine the key factors that influence a firm's decision whether to use front-loaded or rear-loaded incentives. When using price packs, direct mail coupons, FSI coupons or peel-off coupons, consumers obtain an immediate benefit upon purchase or a front-loaded incentive. However, when buying products with in-pack coupons or products affiliated with loyalty programs, promotion incentives are obtained on the next purchase occasion or later, i.e., a rear-loaded incentive. Our analysis shows that the innate choice process of consumers in a market (variety-seeking or inertia) is an important determinant of the relative impact of front-loaded and rear-loaded promotions. While in both variety-seeking and inertial markets, the sales impact and the sales on discount are higher for front-loaded promotions than for rear-loaded promotions, from a profitability perspective, rear-loaded promotions may be better than front-loaded promotions. We show that in markets with high variety-seeking it is ...
New: Food Purchases During the Great Recession
Date Posted:Wed, 14 Jan 2015 05:43:55 -0600
We look at the Nielsen Homescan data to describe what happened during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to determine how the recession impacted: grocery spending in a broad cross-section of 31 food categories; prices paid and quantities bought by consumers in these categories; the selection of type of outlets to make purchases in; the composition of the food basket in the choice of private label versus national brand purchases; product volume bought with retailer discounts and coupons; whether there were differences in behavior across different demographic groups.
REVISION: Competitive Consequences of Using a Category Captain
Date Posted:Wed, 28 Sep 2011 18:13:36 -0500
Many retailers designate one national brand manufacturer in each product category as a “category captain” to help manage the entire category. A category captain may perform demand-enhancing services such as better shelf arrangements, shelf-space management, and design and management of in-store displays. In this paper, we examine when and why a retailer may engage one manufacturer exclusively as a category captain to provide such service and the implications. We find that demand ...
REVISION: Competitive Consequences of Using a Category Captain
Date Posted:Mon, 19 Sep 2011 18:11:42 -0500
Many retailers designate one national brand manufacturer in each product category as a “category captain” to help manage the entire category. A category captain may perform demand-enhancing services such as better shelf arrangements, shelf-space management, and design and management of in-store displays. In this paper, we examine when and why a retailer may engage one manufacturer exclusively as a category captain to provide such service and the implications. We find that demand ...
New: Brand History, Geography, and the Persistence of Brand Shares
Date Posted:Wed, 11 Feb 2009 19:49:35 -0600
We study persistence in the geographic variation in market shares of branded goods in consumer packaged goods industries across 50 U.S. city-markets. We match scanner data on local market shares and survey data on local quality perceptions for the largest brands in 34 consumer packaged goods industries. These data are then matched with historic information on the year and US city-market in which each brand was first launched. We find that these consumer brands have persistently higher market ...
New: Brand History, Geography, and the Persistence of Brand Shares
Date Posted:Sun, 23 Nov 2008 17:23:32 -0600
We study persistence in the geographic variation in market shares of branded goods in consumer packaged goods industries across 50 U.S. city-markets. We match scanner data on local market shares and survey data on local quality perceptions for the largest brands in 34 consumer packaged goods industries. These data are then matched with historic information on the year and US city-market in which each brand was first launched. We find that these consumer brands have persistently higher market ...
New: Brand History, Geography, and the Persistence of Brand Shares
Date Posted:Mon, 29 Sep 2008 08:13:39 -0500
We study persistence in the geographic variation in market shares of branded goods in consumer packaged goods industries across 50 U.S. city-markets. We match scanner data on local market shares and survey data on local quality perceptions for the largest brands in 34 consumer packaged goods industries. These data are then matched with historic information on the year and US city-market in which each brand was first launched. We find that these consumer brands have persistently higher market ...
Endogenous Sunk Costs and the Geographic Distribution of Brand Shares in Consumer Package Goods Indu
Date Posted:Thu, 20 Jan 2005 10:58:01 -0600
This paper describes industrial market structure in consumer package goods (CPG) industries using a unique database spanning 31 industries and the 50 largest US metropolitan markets. A general set of stylized facts is documented pertaining mainly to the geographic patterns in brand shares. A connection between the patterns and a model of endogenous sunk costs in advertising is established by testing several predictions of the theory. We establish that concentration is bounded below in ...
The Role of Retail Competition, Demographics and Account Retail Strategy as Drivers of Promotional S...
Date Posted:Fri, 28 Nov 2003 09:45:12 -0600
We study the determinants of sensitivity to the promotional activities of temporary price reductions, displays, and feature advertisements. Both the theoretical and empirical literatures on price promotions suggest that retailer competition and the demographic composition of the shopping population should be linked to response to temporary price cuts. However, datasets that span different market areas have not been used to study the role of retail competition in determining price sensitivity.
A Q&A with Chicago Booth’s Sanjay K. Dhar on how changing household fortunes drive consumer behavior
{PubDate}On-screen smoking can significantly boost tobacco sales.
{PubDate}Cigarette product placements boost consumer demand.
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