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Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda

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  • Bogomolova, Svetlana
  • Dunn, Steven
  • Trinh, Giang
  • Taylor, Jennifer
  • Volpe, Richard J.

Abstract

Price promotions dominate the modern grocery retail environment. This paper documents the prevalence and nature of these price promotions (i.e., deal types and discount depths) in the United States and United Kingdom. The analysis comprises of 23 categories across five retail chains. One of the key findings is that multiple-unit promotions – deal types that have been under-researched – account for approximately half of all price promotion activity. The analysis also identifies an increase in price promotion prevalence since the Global Financial Crisis, predominantly driven by national brand promotions. This research carries important implications for the alignment of academic research with common industry practices.

Suggested Citation

  • Bogomolova, Svetlana & Dunn, Steven & Trinh, Giang & Taylor, Jennifer & Volpe, Richard J., 2015. "Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 1-11.
    • Handle: RePEc:eee:joreco:v:25:y:2015:i:c:p:1-11
    DOI: 10.1016/j.jretconser.2014.08.017
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    1. Mussol, Sarah & Aurier, Philippe & de Lanauze, Gilles Séré, 2019. "Developing in-store brand strategies and relational expression through sales promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 241-250.
    2. Gordon-Hecker, Tom & Pittarello, Andrea & Shalvi, Shaul & Roskes, Marieke, 2020. "Buy-one-get-one-free deals attract more attention than percentage deals," Journal of Business Research, Elsevier, vol. 111(C), pages 128-134.
    3. Bhatt, Siddharth & Pai, Dinesh R. & DelVecchio, Devon, 2023. "The dark side of multiunit discounts: Multiunit discounts reduce rest of basket revenue," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    4. Dawes, John, 2020. "The Natural Monopoly effect in brand purchasing: Do big brands really appeal to lighter category buyers?," Australasian marketing journal, Elsevier, vol. 28(2), pages 90-99.
    5. Mahmoud Dehghan Nayeri & Amir-Nader Haghbin & Abdolkarim Mohammadi-Balani & Karim Bayat, 2020. "A multi-objective mean–variance mathematical programming approach to combined phase-out and clearance pricing strategy for seasonal products: case study of a Jeans retailer," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(3), pages 210-217, June.
    6. Holzer, Patrick Sebastian, 2020. "The effect of time-varying factors on promotional activity in the German milk market," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    7. Vaidyanathan, Rajiv & Aggarwal, Praveen, 2020. "Does MSRP impact women differently? Exploring gender-based differences in the effectiveness of retailer-provided reference prices," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Hao Lan & Tim Lloyd & Wyn Morgan & Paul W. Dobson, 2022. "Are food price promotions predictable? The hazard function of supermarket discounts," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 64-85, February.
    9. Kim, Jungkeun, 2019. "The impact of different price promotions on customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 95-102.
    10. Bogomolova, Svetlana & Szabo, Marietta & Kennedy, Rachel, 2017. "Retailers' and manufacturers' price-promotion decisions: Intuitive or evidence-based?," Journal of Business Research, Elsevier, vol. 76(C), pages 189-200.
    11. Judith Hillen, 2021. "Online food prices during the COVID‐19 pandemic," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 91-107, January.
    12. Tan, Pei Jie & Corsi, Armando & Cohen, Justin & Sharp, Anne & Lockshin, Larry & Caruso, William & Bogomolova, Svetlana, 2018. "Assessing the sales effectiveness of differently located endcaps in a supermarket," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 200-208.
    13. Tan, Pei Jie & Tanusondjaja, Arry & Corsi, Armando & Lockshin, Larry & Villani, Christopher & Bogomolova, Svetlana, 2021. "Behavioural and psychographic characteristics of supermarket catalogue users," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    14. Amelie A. Hecht & Crystal L. Perez & Michele Polascek & Anne N. Thorndike & Rebecca L. Franckle & Alyssa J. Moran, 2020. "Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior," IJERPH, MDPI, vol. 17(20), pages 1-34, October.
    15. Volpe, Richard J. III & Tedjasaputra, Nicole & Jackson, Olivia & Provost, Ryan, 2021. "Supermarket Pricing and Promotional Behavior: Evidence from the San Luis Obispo Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 52(2), July.

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