Table: Posterior Mean () and Standard Error of
Demographic and Competitive Effects upon Price and Feature Sensitivity
Table: Posterior Mean () and Standard Error of
Demographic and Competitive Effects upon Cross-Price Sensitivity
For the cross-price sensitivities there are mixed results. In the premium tier, increasing household values result in less substitution between brands within this segment. The same moderating effects of household values on substitution toward national brands are also present, as represented by the negative coefficients. For store brands we see an increase in substitution as household values increase, although it is difficult to measure a precise effect. The negative feature coefficients dampen the promotional effects. These effects are generally consistent with the predicted wealth effect. That is as household value increases, we would expect people to be less price sensitive. In addition, price discounts lead to smaller substitution effects and feature effects will be weaker in areas with higher household values.