Advanced Search
MyIDEAS: Login to save this paper or follow this series

Direct and Indirect Effects of Retail Promotions


Author Info



  • G. WETS


In this study, we measure complementary effects of retail promotions for a large number of product pairs. For this, we make use of market basket analysis. We argue that failing to take these cross effects into consideration, may lead retail managers to severely underestimate the impact of promotional efforts. Moreover, we provide guidelines for optimizing promotional strategies. To this end, we introduce lift, a measure for the strength of a complementary relationship, as a moderator in explaining the variation in complementary effects of retail promotions across product pairs. We show that the stronger the complementary relationship (higher lift), the stronger is the cross impact of retail promotions. On the contrary, in case of simultaneously promoting two complementary products, larger promotional impact is seen when weaker product pairs (lower lift) are considered.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 03/202.

as in new window
Length: 21 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:rug:rugwps:03/202

Contact details of provider:
Postal: Hoveniersberg 4, B-9000 Gent
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page:
More information through EDIRC

Related research


This paper has been announced in the following NEP Reports:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jagmohan S. Raju, 1992. "The Effect of Price Promotions on Variability in Product Category Sales," Marketing Science, INFORMS, vol. 11(3), pages 207-220.
  2. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
  3. Roger Betancourt & David Gautschi, 1990. "Demand Complementarities, Household Production, and Retail Assortments," Marketing Science, INFORMS, vol. 9(2), pages 146-161.
Full references (including those not matched with items on IDEAS)


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. B. Vindevogel & D. Van Den Poel & G. Wets, 2004. "Dynamic cross-sales effects of price promotions: Empirical generalizations," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/276, Ghent University, Faculty of Economics and Business Administration.
  2. Juan C. Gázquez-Abad & Manuel Sánchez-Pérez, 2009. "Factors influencing olive oil brand choice in Spain: an empirical analysis using scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 36-55.
  3. B. Vindevogel & D. Van Den Poel & G. Wets, 2004. "Why promotion strategies based on market basket analysis do not work," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/262, Ghent University, Faculty of Economics and Business Administration.
  4. Sandro Shelegia, 2008. "Pricing Interrelated Goods in Oligopoly," Working Papers 014-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.


This item is featured on the following reading lists or Wikipedia pages:
  1. Loss leader in Wikipedia English ne '')
  2. Produit d'appel in Wikipedia French ne '')


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:03/202. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.