Price elasticities and cross-price elasticities have
typically been assumed to be constant for all price
changes, when modelling market shares. Yet there is
increasing evidence that deep price cuts and heavy
promotions have a disproportionate effect, which
depends on where a brand is positioned in the market.
In this book, the breakfast cereal market is being
studied. Weekly scanner data were analysed using
multilevel modeling methods to provide a complete
understanding of this market. The effects of price
changes and promotions are estimated by using dummy
variables for own and competitive...