Using Support Vector Semiparametric Regression to estimate the effects of pricing on brand substitution

This paper analyses the sales impact of temporary retail price discount on consumer goods product categories with different perishability rates, and provides some empirical findings regarding how the deal discounts of competing brands affect the sales substitution effects among them.
  

Using Support Vector Semiparametric Regression to estimate the effects of pricing on brand substitution1

María Pilar Martínez-Ruiz and Miguel Ángel Gómez-BorjaUniversity of Castilla-La Mancha

Alejandro Mollá-DescalsUniversity of Valencia

José Luis Rojo-ÁlvarezUniversity Rey Juan Carlos

INTRODUCTION

Retail marketing managers are primarily concerned with the allocation of scarce marketing resources, such as sales promotion, for improving the market and profit performance of their assortments. The quality of their decisions depends greatly on their understanding of how customers will respond to these strategies (e.g. Blattberg & Neslin 1990; Chen et al.1999; Dekimpe...

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