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This study aims to verify how the product-relevant market for wines should be defined. To do so, the authors apply an empirical methodology to determine the levels of substitution among wine-categories, identifying each relevant market in Argentina.

The authors perform an econometric analysis applying the nested logit methodology that will enable us to estimate cross elasticities in wine segments in the Argentine market. The database contains 1,367 brands and a maximum of 395 firms offering products of different segments. If cross elasticities between wine segments are positive and significantly different to zero, the products belong to the same relevant market. In the methodological section, the authors discuss the pros and cons of this approach and its alternatives, while in the empirical analysis, they perform several robustness controls.

The proposed method and results provide an alternative to exogenously defining where each product category begins and ends. The results show that the relevant market for wines should be segmented by categories as the substitution between each one is very low.

In this empirical work, the study analyzes whether each segment constitutes a relevant, independent market. In Argentina, the practice of competition policy does not recognize substitution between different categories of wine; thus, each category constitutes a relevant market by itself, while according to the international practice, the relevant market includes all wine categories. The results suggest exploring the existence of different relevant markets of wine.

Under the label “wine,” different types or qualities can act as substitutes among them in different possible relevant markets. A more precise definition of relevant markets permits informed decisions facing proposed mergers or anticompetitive practices.

This study provides a mechanism to determine the levels of substitution among wine categories (i.e. to find the boundaries of each relevant market). Wine is a differentiated product and, as such, offers different qualities (categories) for consumers. The consideration of those differences in winery mergers has consequences on social welfare.

According to the international practice in competition policy, the relevant market includes all wine categories. This study provides an alternative to defining exogenously where each category of product begins and ends and does not assume a priori the direction or intensity of substitution among products.

This paper aims to identify customer behavior with regard to out‐of‐stocks (OOS) of perishable products (focused on bakery bread) and the resulting inventory performance for these perishable products.

Insights on how consumers behave when their preferred bread product is OOS are derived based on 3,800 customer interviews performed in three stores of a large Dutch grocery retail chain. Next to this, additional logistical information was measured on regular moments with respect to the shelf availability per stock‐keeping unit during the day and to waste at the end of the day.

The customer behavior with regard to perishables is observed to be different from that for the non‐perishable items. The key observation is that customers have a high willingness to substitute. The incorporation of the obtained knowledge of the observed consumer buying behavior into the existing automated store ordering (ASO) systems is discussed. In the current ASO systems, no distinction is made between perishable and non‐perishable products, as it is primarily designed and used for the non‐perishables. The authors show that the current ASO can be enriched and extended by taking into account some extra crucial parameters which are based on the observed consumer behavior.

One common factor in the research papers published so far is that they primarily looked into the customer behavior for non‐perishable items. The current paper on‐hand extends these works towards perishable items with a focus on bakery bread.

The purpose of this paper is to assess Scottish consumers’ demand for animal welfare and organic pork. The paper also tried to answer the following questions: first, are animal-friendly pork and organic-pork complements or substitutes (competing)? Second, what is the relationship between pork products with different animal welfare labels (i.e. “freedom food” pork vs “specially selected pork”)? Third, does the demand for animal-friendly and organic pork vary with the level of deprivation of the area where consumers are living?

The dataset used in the analysis is the Kantar Worldpanel dataset for Scotland, which contains weekly data of food and drink purchases for consumption at home, covering the period 2006-2011. The panel is representative of the Scottish population and covers about 3,694 households. The linear version of the almost ideal demand system was estimated. Then, the own- and the cross-price elasticities as well as the expenditure elasticities for the 22 food categories and products were computed.

The results indicate that when the price of animal-friendly pork increases, consumers decrease their consumption of this product and substitute it by organic pork or regular pork, especially in the case of fresh pork, bacon and sausages. It was found that products with different animal welfare accreditation are substitutes in the eyes of Scottish consumers and are, therefore, competing for the market share of animal-friendly foods. The results also show that the demand for animal-friendly pork is more elastic in the most deprived areas in Scotland.

To the best of the authors’ knowledge, this is the first study that estimates the demand for conventional, animal-friendly and organic pork using a scanner data in Scotland and controlling for the variation by area of deprivation.

This paper aims to focus on measuring and assessing the sales impact of temporary retail price discounts on all brands within a product subcategory as well as across other subcategories that differ slightly on composition and taste.

To test these effects, the study uses a regression approach to analyse data of several fast moving consumer good subcategories obtained from a Spanish supermarket.

The results confirm that temporary retail price reductions increase brand sales of the promoted brands, especially at weekends. Some brands gained sales at the expense of sales of substitute items within the same subcategory and also from sales of competing items in other subcategories.

The results of the current research suggest the presence of brand substitution effects within the analysed subcategories. In particular, while asymmetrical cross‐price effects are detected in only two subcategories, neighbourhood cross‐price effects have been evidenced in most subcategories. When considering the general product categories, certain substitution effects have been also evidenced: neighbourhood cross‐price effects are detected in most subcategories whilst asymmetrical cross‐price effects are not evidenced.

Retailers can learn from the experiences of a cross‐subcategory competition in order to determine which prices and discounts should set at the variety level. Though grocery retailers implement several decisions at the category level, brand level or even brand size level, it is valuable to learn from the experiences of a cross‐subcategory competition in order to determine whether or not it is interesting to set prices at the variety level.

The contribution in this paper consists not only of the measurement and assessment of the sales impact of temporary retail price discounts on all brands within a product subcategory as well as across other subcategories that differ slightly on composition and taste, but also of the application with data from the Spanish market.

Economists have, in the last 20 years, made many contributions to the study of the deterrent effect of sanctions on criminals — these are surveyed in Brief & Fienberg (1980), Blumstein & Cohen (1978), Tullock (1974), Palmer (1977) and Taylor (1978). A considerable amount of the empirical work has dealt with crime supply functions for specific types of crime. Surprisingly little attention has been given to the switching of criminals between crimes in response to differentials in deterrence. Only three empirical studies of this phenomenon have appeared: Heineke (1978), Holtmann & Yap (1978), Hakim et al. (1984). All of these use cross‐section US data for property crimes. Their findings are thus somewhat tentative given that they may not hold up in other national contexts. This paper seeks to remedy this gap by studying substitution behaviour for burglary, robbery and theft using 1981 data for the police force areas of England and Wales. We compare our results with those of American researchers and also examine the impact of substitution on the broad conclusions of the conventional non‐substitution model.

The paper aims to empirically investigate how demand variability impacts product category inventory levels and stockout rates of retail firms. Additionally, the moderating effect of product variety on these performance metrics is explored.

Using data from 78 individual retail stores of a single firm located in China, the authors develop a three stage least squares regression model to examine the simultaneous impact of product variety and demand variability on product inventory levels and stockout rates.

The results indicate that product variety and demand variability both negatively influence product category inventory levels and stockout rates. However, contrary to results for manufacturing or distributor environments, product variety dampens the negative relationship between demand variability and inventory.

For products or categories with a high amount of demand variability, retailers can leverage more product variety to help improve their inventory performance. This is likely due to product substitution behaviors.

The authors show that previously examined relationships between product variety, demand variability, and firm performance are different in the retail environment than in the manufacturing or distributor context.

Disruptive technologies in the global logistics industry are often regarded as a threat to the existing business models of incumbents’ companies. Existing research, however, focuses mainly on whether technologies have disruptive potential, thereby neglecting when such disruptive transitions occur. To understand the timing of potential disruptive technological change, this paper aims to investigate the elements of the underlying ecosystem shaping these transitions.

Building on the established ecosystem framework from Adner and Kapoor (2016a), this paper constructs four categories of technology substitution to assess how quickly disruptive change may occur in the global logistics industry and defines key technology substitution determinants in logistics to emphasize the role of ecosystems for further consideration into disruptive innovation theory.

Based on the key determinants, this paper proposes first definitions of distinctive ecosystems elements linked to the three types of innovations, namely, sustaining innovations, low-end disruptions and new-market disruptions, thereby integrating ecosystems into Christensen’s (1997) disruptive innovation theory.

By developing a framework that conceptualizes the pace of technology substitution, this paper contributes to a more nuanced understanding of how logistics managers and academics can better predict disruptive transitions and develop strategies to allocate resources.

The purpose of this paper is to investigate the effect of perceived product similarity and comparative ad claims on brand responses.

This study uses a two (similarity between the target product and the comparison product: relatively similar vs dissimilar) by three (product attributes of the target product: common to the comparison product, distinct from the comparison product, and a combination of common and distinct attributes) between-subjects factorial design with 300 Thai undergraduate students.

It finds that when perceived similarity between the products is high, a combination of superiority (distinct) and parity (common) ad claims lead to the best brand responses. When perceived similarity is low, superiority claims bring about the best brand responses.

It extends comparative advertising and category-substitution research by addressing the research gaps in perceived similarity and claim type.

Companies should emphasize a product’s superior attributes in general but a combination of common and superior attributes when the product is relatively similar to other products in comparative advertising.

This study provides new evidence that perceived product similarity moderates the effect of comparative ad claims on brand responses.

Carbon emission is a significant issue for the current business market and global warming. Nowadays, most countries have focused to reduce the environmental impact of business with durable financial benefits. The purpose of this study is to optimize the entire cost functions with carbon emission and to find the sustainable optimal ordering quantity for retailers.

This paper illustrates a sustainable inventory model having a set of two non-instantaneous substitutable deteriorating items under joint replenishment with carbon emission. In this model demand and deterioration rate are considered as deterministic, constant and triangular fuzzy numbers. The objective is to find the optimal ordering quantity for retailers and to minimize the total cost function per unit time with carbon emission. The model is then solved with the help of Maple software.

This paper presents a solution method and also develop an algorithm to determine the order quantities which optimize the total cost function. A numerical experiment illustrates the improvement in optimal total cost of the inventory model with substitution over without substitution. The graphical results show the convexity of the cost function. Finally, sensitivity analysis is given to get the impact of parameters and validity of the model.

This study considers a set of two non-instantaneous substitutable deteriorating items under joint replenishment with carbon emission. From the literature review, in the authors’ knowledge no researcher has undergone this kind of study.

Geographical indications (GIs) provide a strong differentiation tool for firms. Whether this statement is confirmed at aggregate level in terms of market independence of different GIs is not tested yet. The purpose of this paper is to provide demand estimates and elasticities (own‐price and substitution) in order to test this hypothesis and verify the differentiation effect of GIs at aggregate level.

The analysis consists of the application of a quadratic almost ideal demand on a four equation system. Estimates are obtained through an iterated version of a generalized method of moments, which corrects for endogeneity determined by expenditure and prices in case of promotional activities.

Estimates prove the existence of a differentiation effect of GIs in terms of magnitude of elasticities and substitution effects. GIs corresponding to higher quality generate lower price sensitiveness and product substitution, contrarily to wine without GI. Controlled origin denomination (DOC) wine demand results are price sensitive and they substitute for wines of different GI. Controlled and guaranteed origin denomination (DOCG) is the most profitable GI. In fact, because of its inelastic demand, DOCG price could be potentially increased, to a certain extent, without having significant effects on volumes consumed.

Foreign wine should also be included in the demand system in order to understand the whole Italian wine market. Data concern retail level demand. The whole market, including hotels, restaurants and catering, should be included to offer a wider set of implications.

Marketers and producers could use the information provided by the estimates in order to forecast Italian wine demand. Elasticities and substitution effect provide them with a precise measure of consumers' price sensitiveness, which would be beneficial for their pricing strategies.

The paper provides, for the first time, estimates of a demand system relative to GI differentiated Italian wine.