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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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    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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    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)

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    Handle: RePEc:ags:jlofdr:26836

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    Keywords: Agribusiness;


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    1. Nayga, Rodolfo M., Jr., 1993. "Scanner Data in Supermarkets: Untapped Data Source for Agricultural Economists," 1993 Conference (37th), February 9-11, 1993, Sydney, Australia 147767, Australian Agricultural and Resource Economics Society.
    2. 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.
    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. 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.
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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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