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New Insights Into Supermarket Promotions Via Scanner Data Analysis: The Case Of Milk

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  • Green, Geoffrey M.
  • Park, John L.
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    Abstract

    Supermarket companies expend significant resources and employ many promotional activities so as to convince consumers to shop their stores. This analysis investigates the promotional activities of a single retail food company to determine the price and promotion responsiveness of fluid milk products that differ by milkfat content. It utilizes weekly, store-level scanner data. Seasonality and advertising are significant determinants of retail sales of fluid milk. Own-price elasticities are negative, and cross-price elasticities are positive for all milk types and are significant and elastic in the case of 2% milk. Advertising effects are positive and statistically significant. The response to advertising is much more pronounced for reduced-fat milk types than it is for whole milk.

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    File URL: http://purl.umn.edu/26836
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    Bibliographic Info

    Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

    Volume (Year): 29 (1998)
    Issue (Month): 3 (November)
    Pages:

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    Handle: RePEc:ags:jlofdr:26836

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    Web page: http://fdrs.ag.utk.edu/
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    Related research

    Keywords: Agribusiness;

    References

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    1. Gould, Brian W., 1996. "Factors Affecting U.S. Demand For Reduced-Fat Fluid Milk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
    2. Nayga, Rodolfo M., Jr., 1992. "Scanner Data in Supermarkets: Untapped Data Source for Agricultural Economists," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(02), August.
    3. Jensen, Kimberly L., 1995. "Fluid Milk Purchase Patterns In The South: Effects Of Use Of Nutrition Information And Household Characteristics," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.
    4. Capps, Oral, Jr. & Lambregts, Johannes Adrianus, 1991. "Assessing Effects Of Prices And Advertising On Purchases Of Finfish And Shellfish In A Local Market In Texas," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(01), July.
    5. Eastwood, David B. & Gray, Morgan D. & Brooker, John R., 1994. "Supermarket Patronage: An Analysis Of Customer Counts Among Outlets Within A Geographic Area," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(2), September.
    6. Oral Capps & Rodolfo M. Nayga, 1991. "Demand for fresh beef products in supermarkets: A trial with scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 7(3), pages 241-251.
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    Cited by:
    1. Bernard, Daria J. & Mathios, Alan D., 2005. "Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes," 2005 Annual meeting, July 24-27, Providence, RI 19366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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