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Basic Demand Estimation Exercise - Estimating the demand elasticities of Kraft and Hellman's mayonnaise in the broader Chicago market

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Exercise 1: Basic Demand Estimation Exercise

By: Reid Falconer

In this exercise, we will go through the standard steps that one needs to undertake in conducting a basic demand analysis. For this purpose, we will use scanner data obtained from Kraft. Kraft uses Nielsen as its scanner data vendor in all product categories. In this exercise, we use a small subset of all possible product and geography variable combinations available in this sort of data. We will explore store level-scanner data at the account level (Jewel), and a higher of aggregation (Central Region).

  • Category: Category: Viscous salad dressings (Mayonnaise/Miracle Whip/other "spreadables")
  • Sub-categories: Mayonnaise, Miracle Whip
  • Product aggregates:
    • Kraft Mayo 32oz
    • Hellman's Mayo 32oz
  • Geographical aggregates:
    • Kraft Midwest Region (called "Central Region")
    • Chicago Market: Jewel-Osco
  • Time aggregation/periods:
    • Weekly data 91/92

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Basic Demand Estimation Exercise - Estimating the demand elasticities of Kraft and Hellman's mayonnaise in the broader Chicago market

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