Can retail sales volatility be curbed through marketing actions?

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Title: Can retail sales volatility be curbed through marketing actions?
Authors: Esteban-Bravo, M
Vidal-Sanz, JM
Yildirim, G
Item Type: Journal Article
Abstract: For many years, marketing managers have used dynamic sales response models to compute expected sales conditional on the available information. These models fail to recognize that the volatility (conditional variance) of sales can vary over time. Moreover, the covolatilities (conditional covariances) between sales and marketing-mix variables can be time varying. Both concepts introduce a new range of strategic and tactical considerations for product and brand managers. Using a multivariate volatility model, we investigate the covolatility of sales and the marketing mix of a focal brand and competing brands in the market. We also examine carryover effects from a volatility perspective. The methodology is applied to six product categories sold by Dominick’s Finer Foods. The results reveal valuable implications for marketing managers.
Issue Date: 8-Feb-2017
Date of Acceptance: 3-May-2016
URI: http://hdl.handle.net/10044/1/41683
DOI: https://dx.doi.org/10.1287/mksc.2016.1013
ISSN: 1526-548X
Publisher: INFORMS (Institute for Operations Research and Management Sciences)
Start Page: 232
End Page: 253
Journal / Book Title: Marketing Science
Volume: 36
Issue: 2
Copyright Statement: Copyright: © 2017 INFORMS
Keywords: Social Sciences
Business
Business & Economics
sales
volatility
marketing mix
time-series econometrics
CUSTOMER SATISFACTION
PRODUCT QUALITY
FIRM VALUE
IMPACT
PROMOTIONS
INDUSTRY
GROWTH
PRICES
1505 Marketing
Marketing
Publication Status: Published
Appears in Collections:Imperial College Business School



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