- ASA 2021 Statistics and Information Systems for Policy Evaluation
- Edited by Bruno Bertaccini, Luigi Fabbris, Alessandra Petrucci
The effectiveness of marketing tools in a consumer goods market in Italy during the Great Recession (2010-2015)
- Giorgio Tassinari
- Demetrio Panarello
- © 2021 Author(s) |
- CC BY 4.0
- DOI: 10.36253/978-88-5518-461-8.20
In the case of markets characterized by a stationary primary demand, the relevant dimension for measuring a company’s success is represented by market shares. The paper aims to build and comment on a model that gauges the competitive effects of marketing maneuvers on market shares, with reference to tea-based beverages in Italy in the period November 2010 – October 2015. This analysis will be instrumental in establishing the effectiveness of marketing policies based on promotions or advertising. We estimate such a model on weekly data provided by IRI Infoscan and Nielsen, involving the top five brands in the Italian market. After a descriptive analysis and a stationarity test, we estimate a Multinomial Logit model, making use of the Seemingly Unrelated Regressions method. The results allow us to identify the effectiveness of each brand’s marketing policies. Moreover, they enable us to derive the matrices of direct and cross elasticities of brands’ market shares with respect to the main marketing tools (price, promotions, distribution, advertising investments) and to compare basic and average market shares. Based on these results, it is therefore possible to identify the market’s competitive structure, revealing the most incisive factors to be price and weighted distribution, while advertising investments are significant in only a few cases and elasticities are remarkably low. The competitive structure appears to be of a horizontal type (i.e., cross elasticities do not vary greatly).
- Keywords:
- Stationary demand,
- Market shares,
- Competitive structure,
- Multinomial Logit,
- Seemingly Unrelated Regressions,
University of Bologna, Italy - ORCID: 0000-0002-5161-7989
University of Bologna, Italy - ORCID: 0000-0003-1667-1936
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Chapter Information
Chapter Title
The effectiveness of marketing tools in a consumer goods market in Italy during the Great Recession (2010-2015)
Authors
Giorgio Tassinari, Demetrio Panarello
Language
English
DOI
10.36253/978-88-5518-461-8.20
Peer Reviewed
Publication Year
2021
Copyright Information
© 2021 Author(s)
Content License
Metadata License
Bibliographic Information
Book Title
ASA 2021 Statistics and Information Systems for Policy Evaluation
Book Subtitle
BOOK OF SHORT PAPERS of the on-site conference
Editors
Bruno Bertaccini, Luigi Fabbris, Alessandra Petrucci
Peer Reviewed
Publication Year
2021
Copyright Information
© 2021 Author(s)
Content License
Metadata License
Publisher Name
Firenze University Press
DOI
10.36253/978-88-5518-461-8
eISBN (pdf)
978-88-5518-461-8
eISBN (xml)
978-88-5518-462-5
Series Title
Proceedings e report
Series ISSN
2704-601X
Series E-ISSN
2704-5846