Measuring market response to price changes. A classification approach

Francis J. Mulhern*, Robert P. Leone

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

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 languageEnglish (US)
Pages (from-to)197-205
Number of pages9
JournalJournal of Business Research
Volume33
Issue number3
DOIs
StatePublished - Jul 1995

ASJC Scopus subject areas

  • Marketing

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