Abstract
Manufacturers often try and persuade retailers that their product tends to be included in the higher value baskets by comparing the average value of the baskets containing their brand, the Brand Basket Mean, with the average value of all the baskets in the store. Surprisingly, this comparison is positive for almost all brands and so can be very misleading. As a much more appropriate comparison measure, we propose a Brand Specific Effect, which uses an easy-to calculate, weighted average of all Brand Basket Means as a comparison standard. We then propose a meaningful decomposition of this Brand Specific Effect into Price and Quantity Effects that measure a brand's tendency to be included with expensive items and it's tendency to be included with many items.
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Chien, YH., George, E.I. & McAlister, L. Measuring a Brand's Tendency to be Included in High Value Baskets. Marketing Letters 12, 287–298 (2001). https://doi.org/10.1023/A:1012221303960
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DOI: https://doi.org/10.1023/A:1012221303960