In making pricing decisions, marketing managers frequently change prices concurrently with other marketing mix variables. In order to assess market response to such changes, managers must measure the overall effect of changes in multiple marketing variables. The authors describe an approach for evaluating the interaction effect of multiple marketing variables by searching a historical database for instances in the past where similar changes took place. Market response can be assessed by evaluating how markets responded to these similar changes in the past. An empirical example is provided to demonstrate how managers can predict market response to future price changes using information on past market response contained in large scanner databases.
|Original language||English (US)|
|Number of pages||9|
|Journal||Journal of Business Research|
|State||Published - Jul 1995|
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