Q: Where do you get store-specific sensitivities from?
A:
This is actually something that is pulled out of the model. What
you could do, there are a lot of ways to come up with this, but
what I'm really going after is let's just try to come up with
some measure of how sensitive people are to price changes.
Q (Normand):
I ask because I wonder--How much variance is in these
estimates?
A:
In this case, these are fairly well measured, at least relative
to the ranks.
So, the third blue stores, you know we really could
say pretty precisely that they all are very price sensitive, the
third of the stores that are coded by this yellow, we really
could say that these stores are price insensitive. So you know I
think that this is an important point, and the reason I'm
putting this up here is just to try to get the idea across that
there are some kind of geographic dispersion in pricing sensitivities.
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