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An Empirical Comparison Of Direct Product Profit And Existing Measures Of Sku Productivity, Norm Borin, Paul Farris
An Empirical Comparison Of Direct Product Profit And Existing Measures Of Sku Productivity, Norm Borin, Paul Farris
Marketing
DPP (direct product profitability) has been heralded as one of the more important advances in supermarket shelf management, yet its acceptance by managers in the industry has been slow. Not only is DPP complex and expensive to calculate, but some question exists about whether decisions based on DPP are different from those based on traditional criteria such as gross margin and movement. A data base of nine dry-grocery categories is used here to compare DPP with other SKU indices. DPP is shown to lead to significantly different rankings in some categories, but not all. A Merchandising Attractiveness Index (MAl) is …