The category demand effects of price promotions
Abstract
Although price promotions have increased in both commercial use and quantity of academic research over the last decade, most of the attention has been focused on their effects on brand choice and brand sales. The category-demand effects of consumer price promotions were studied across 560 consumer product categories over a 4-year period. The data describe national sales in Dutch supermarkets and cover virtually the entire marketing mix, i.e., prices, promotions, advertising, distribution, and new-product activity. Focus is on the estimation of main effects (i.e., the dynamic category expansive impact of price promotions) as well as the moderating effects of marketing intensity and competition (both conduct and structure) on short- and long-run promotional effectiveness. The research design uses modern multivariate time-series analysis to disentangle short-run and long-run effects. Category demand is found to be predominantly stationary, either around a fixed mean or a deterministic trend. Although the total net short-term effects of price promotions are generally strong, they rarely exhibit persistent effectsDownload Info
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Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/119330.Length:
Date of creation: 2001
Date of revision:
Publication status: Published in Marketing Science (2001) v.20, p.1-22
Handle: RePEc:ner:leuven:urn:hdl:123456789/119330
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Web page: http://www.kuleuven.be
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Keywords: Advertising; Competition; Consumer behavior; Data; Effectiveness; Effects; Marketing; Marketing mixes; Multivariate analysis; Prices; Sales; Sales promotions; Structure; Studies; Supermarkets; Time series; Demand;References
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