A Dynamic Model of Purchase and Consumption Across Complementary Categories
Marketing Department; Faculty Advisers: Eric Bradlow (primary), Raghuram Iyengar
This research estimates the spillover impact of promotions on the sales of related categories. The existing literature has ignored the fact that this cross-category effect may not be immediate: if consumers stockpile goods when they are on sale, the effect may be delayed.
The research can benefit retail companies through a better understanding of the effect of promotions on their total sales over time. Retailers can use the findings to optimize their promotion schedule across product categories.
The method used in this research is based on a structural model of consumer behavior grounded in microeconomic theory and statistics. This project may apply the model to purchase data at the household level.
Publications, Presentations, & Awards
“Consumer Stockpiling and Demand Complementarity”, Marketing Science Conference, Baltimore (June 2015)
“Separate Purchases but Joint Consumption: A Dynamic Structural Model of Demand for Storable Complements”, Marketing Dynamics Conference, Las Vegas (August 2014)
“Purchasing the Parts to Consume the Whole: A Dynamic Cross-category Model with Consumer Stockpiling”, Marketing Science Conference, Atlanta (June 2014)