Estimating Brand Positioning Maps Using Supermarket Scanning Data

Abstract

Hauser and Shugan's DEFENDER model is estimated with data obtained from supermarket scanning devices. As a result of that estimation, per dollar multidimensional brand maps are obtained from aggregate sales and price time series data. The estimation procedure employs least squares regression analysis. The maps enable a researcher or brand manager to (1) derive a map from observed choice behavior, (2) study the direct effect of both a brand's price and a brand's position on that brand's sales, (3) obtain statistical measures of accuracy for the estimated brand coordinates, and (4) integrate the traditional cross-price elasticity interpretation of substitutability with perceptual mapping. Actual maps are estimated for three product categories (toothpaste, mouthwash, and dishwashing liquid). Preliminary findings are presented. For example, brands produced by the same manufacturer are often in proximity.

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