Modeling the Decision to Add New Products by Channel Intermediaries

Using data collected on new products presented to a major channel intermediary, the authors estimate logistic regression models to describe the intermediary's accept/reject decisions for those products. Results indicate how different variables influence those decisions. The logistic model is shown to fit extremely well with excellent validation performance. Implications of these results for marketing strategies and for improving performance of the marketing system are discussed.

[1]  Ronald C. Curhan,et al.  Factors influencing grocery retailers' support of trade promotions , 1986 .

[2]  Edward W. McLaughlin,et al.  An Exploratory Modeling of the Decision Process of New Product Selection by Supermarket Buyers , 1987 .

[3]  Strother H. Walker,et al.  Estimation of the probability of an event as a function of several independent variables. , 1967, Biometrika.

[4]  R. Schmalensee.  Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry , 1978 .

[5]  J. T. Webster,et al.  Formulating Push Marketing Strategies: A Method and Application , 1983 .

[6]  F. Scherer.  The Welfare Economics of Product Variety: An Application to the Ready-to-Eat Cereals Industry , 1979 .

[7]  K. G. Hardy.  Key Success Factors for Manufacturers’ Sales Promotions in Package Goods , 1986 .

[8]  Edward W. McLaughlin,et al.  The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency , 1990 .

[9]  David B. Montgomery,et al.  New Product Distribution: An Analysis of Supermarket Buyer Decisions , 1975 .

[10]  Roger M. Heeler,et al.  Modeling Supermarket Product Selection , 1973 .

[11]  Janet L. Yellen,et al.  Commodity Bundling and the Burden of Monopoly , 1976 .

[12]  John M. Connor,et al.  Food Product Proliferation: A Market Structure Analysis , 1981 .

[13]  John F. Grashof.  Supermarket Chain Product Mix Decision Criteria: A Simulation Experiment , 1970 .

[14]  D. G. Morrison.  On the Interpretation of Discriminant Analysis , 1969 .