Allocation of shelf space: A case study of refrigerated juice products in grocery stores
✍ Scribed by Mark G. Brown; Jong-Ying Lee
- Publisher
- John Wiley and Sons
- Year
- 1996
- Tongue
- English
- Weight
- 604 KB
- Volume
- 12
- Category
- Article
- ISSN
- 0742-4477
No coin nor oath required. For personal study only.
✦ Synopsis
The results of this study show how shelfspace can be allocated between products in a profit maximizing framework. Cross sectional data were analyzed to determine whether orange juice might have less than optimal shelf space. Estimates of product demands indicate that cross-facings-per-store eflects were insignijicant; and, hence, only own-facings-per-store effects were used in the analysis. Results indicate that orange juice? actual share of department facings of 51 % is less than its optimal share of department facings that range from 80 to 61.6% based on alternative markup assumptions. 01996 John Wiley & Sons, Inc.
The amount of shelf space allocated to a product in a store has an opportunity cost, knowledge of which allows determination of the most profitable allocation of space between alternative products competing for the store's limited shelf space.1,2