Wharton-SMU Research Center

In-House Seminar

Guest Speaker:

David R. BELL
Associate Professor of Marketing, The Wharton School, University of Pennsylvania.

Date & Venue:
Date: 5 November 2004, Friday
Time: 4.00pm-5.45pm
Venue: Eu Tong Sen, Level 1, Seminar Room 2,
Singapore Management University
469 Bukit Timah Road, Singapore 259756
(Location Map)

Topic:
An Empirical Test of the Theory of Sales: Do Household Storage Costs Influence Consumer and Store Behavior?

About the Seminar:
The Salop and Stiglitz (1982) Theory of Sales is revisited and tested. Equilibrium predictions are that higher consumer storage costs lead to: (1) higher average prices, (2) fewer promotions, and (3) shallower promotions. Empirical estimates of storage cost are developed for approximately 1,000 households using the American Housing Survey (1989), United States Census (1990), and Stanford Market Basket Database (1991-1993). A test of the key assumption finds consumers with higher storage costs shop more often and purchase smaller quantities per visit; moreover, all three equilibrium predictions are supported. The estimated quantitative effects on shopping frequency and prices are economically important.

Registration:
This seminar is free. Please register early. (Admission on a first-come-first-served basis.)
For registration, please click here (Registration closes on 4 November 2004, Thursday)

Enquiries:
Ms. Lim Lih Yeng
Email: lylim@smu.edu.sg, Tel: 6822-0197
Ms. Priscilla Cheng
Email: priscillacheng@smu.edu.sg, Tel: 6822-0383