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How Promotions Work

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Author Info

  • Robert C. Blattberg

    (Northwestern University)

  • Richard Briesch

    (New York University)

  • Edward J. Fox

    (Northwestern University)

Registered author(s):

    Abstract

    By synthesizing findings across the sales promotion literature, this article helps the reader understand how promotions work. We identify and explain empirical generalizations related to sales promotion; that is, effects that have been found consistently in multiple studies involving different researchers. We also identify issues which have generated conflicting findings in the research, as well as important sales promotion topics that have not yet been studied. This overview of the research and findings from the sales promotion literature is intended to offer direction for future research in the area.

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    File URL: http://dx.doi.org/10.1287/mksc.14.3.G122
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    Bibliographic Info

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 14 (1995)
    Issue (Month): 3_supplement ()
    Pages: G122-G132

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    Handle: RePEc:inm:ormksc:v:14:y:1995:i:3_supplement:p:g122-g132

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    Web page: http://www.informs.org/
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    Related research

    Keywords: sales promotion; retailer promotions; trade promotion; empirical generalizations;

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    Citations

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    Cited by:
    1. Hendel, Igal & Nevo, Aviv, 2001. "Sales and Consumer Inventory," Department of Economics, Working Paper Series qt11x3d68b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Andrews, Melinda L. & Benedicktus, Ray L. & Brady, Michael K., 2010. "The effect of incentives on customer evaluations of service bundles," Journal of Business Research, Elsevier, vol. 63(1), pages 71-76, January.
    3. Dekimpe, M.G. & Hanssens, D.M. & Nijs, V.R. & Steenkamp, J-B.E.M., 2003. "Measuring Short- and Long-run Promotional Effectiveness on Scanner Data Using Persistence Modeling," ERIM Report Series Research in Management ERS-2003-087-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Carmen Lee & Roman Kraeussl & André Lucas & Leonard J. Paas, 2008. "A Dynamic Model of Investor Decision-Making: How Adaptation to Losses affects Future Selling Decisions," Tinbergen Institute Discussion Papers 08-112/2, Tinbergen Institute, revised 02 Sep 2013.
    5. Pauline De Pechpeyrou & Béatrice Parguel & Aîda Mimouni & Pierre Desmet, 2006. "Perceived value and trustworthiness of a multi- promotion offer," Post-Print halshs-00146652, HAL.
    6. Matilda Dorotic & Dennis Fok & Peter Verhoef & Tammo Bijmolt, 2011. "Do vendors benefit from promotions in a multi-vendor loyalty program?," Marketing Letters, Springer, vol. 22(4), pages 341-356, November.
    7. Pauline De Pechpeyrou & Béatrice Parguel & Aîda Mimouni & Pierre Desmet, 2006. "Valeur et sincérité perçues d'une promotion multi-mécanismes," Post-Print halshs-00146620, HAL.
    8. Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M. & Villas-Boas, Sofia Berto, 2008. "Sales: Tests of theories on causality and timing," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1257-1273, November.
    9. Lee, Carmen & Kräussl, Roman & Lucas, André & Paas, Leo, 2010. "Why do investors sell losers? How adaptation to losses affects future capitulation decisions," CFS Working Paper Series 2010/23, Center for Financial Studies (CFS).
    10. Richard Volpe, 2013. "Promotional Competition Between Supermarket Chains," Review of Industrial Organization, Springer, vol. 42(1), pages 45-61, February.
    11. Franses, Philip Hans & Kloek, Teun & Lucas, Andre, 1998. "Outlier robust analysis of long-run marketing effects for weekly scanning data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 293-315, November.
    12. Fok, D. & Horváth, C. & Paap, R. & Franses, Ph.H.B.F., 2004. "A hierarchical Bayes error correction model to explain dynamic effects," Econometric Institute Research Papers EI 2004-27, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    13. 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).
    14. Pauline De Pechpeyrou & Béatrice Parguel & Aîda Mimouni & Pierre Desmet, 2006. "Valeur et sincérité perçues d'une promotion multi-mécanismes," Post-Print halshs-00145916, HAL.
    15. Hruschka, Harald, 2002. "Market share analysis using semi-parametric attraction models," European Journal of Operational Research, Elsevier, vol. 138(1), pages 212-225, April.
    16. Sheu, Jiuh-Biing, 2011. "Marketing-driven channel coordination with revenue-sharing contracts under price promotion to end-customers," European Journal of Operational Research, Elsevier, vol. 214(2), pages 246-255, October.
    17. Jason C. Patalinghug, 2013. "The Effect of Advertising and In-Store Promotion on the Demand for Chocolate," Working Papers 21, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    18. Horváth, C. & Fok, D., 2008. "Moderating Factors of Immediate, Dynamic, and Long-run Cross-Price Effects," ERIM Report Series Research in Management ERS-2008-042-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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