Relationship between the Marketing Mix and Share of Category Requirements

Marketing Letters, Volume 7, Issue 1, pp 5-18

Posted: 8 Jun 2016

See all articles by CB Bhattacharya

CB Bhattacharya

European School of Management and Technology (ESMT); Katz Graduate School of Business University of Pittsburgh

Peter Fader

University of Pennsylvania - Marketing Department

Leonard M. Lodish

University of Pennsylvania - Marketing Department

Wayne S. DeSarbo

Pennsylvania State University

Date Written: January 1996

Abstract

A criticism of purchase-based brand loyalty measures is that they are confounded by the marketing mix variables that affect brand choice. This paper investigates the magnitude and direction of the associations for share of category requirements (SCR), defined as each brand's share among the group of households who bought the brand at least once during the time period under consideration. We discuss the theoretical foundations for the relationships between SCR and a set of marketing mix variables (price, promotions, retail distribution) and conduct a latent structure regression analysis of brand-level data to test these relationships. We find that, although the relationship between the marketing mix variables and SCR is statistically significant, in real terms the magnitude of the association is fairly low.

Keywords: brand loyalty, marketing mix, share of category requirements, scanner data

Suggested Citation

Bhattacharya, Chitrabhanu and Fader, Peter and Lodish, Leonard M. and DeSarbo, Wayne S., Relationship between the Marketing Mix and Share of Category Requirements (January 1996). Marketing Letters, Volume 7, Issue 1, pp 5-18, Available at SSRN: https://ssrn.com/abstract=2791189

Chitrabhanu Bhattacharya

European School of Management and Technology (ESMT) ( email )

Schlossplatz 1
10117 Berlin
Germany

Katz Graduate School of Business University of Pittsburgh ( email )

Pittsburgh, PA
United States
4123834212 (Phone)

HOME PAGE: http://www.business.pitt.edu/faculty/bhattacharya

Peter Fader

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Leonard M. Lodish

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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