IDEAS home Printed from https://ideas.repec.org/a/ags/uersja/145842.html
   My bibliography  Save this article

Effects of Price Specials on Volume of Sales of Frying Chickens

Author

Listed:
  • Gray, Leo R.

Abstract

Every week, major food retailers have advertisements in local newspapers in which they feature commodities at special sale prices. Probes to measure the effects of advertising these price specials, however, are relatively recent in marketing economics research. What effect do retail price specials have on total sales in a market area, or in the whole Nation? A preliminary study that attempted an aggregate approach to this problem for frying chickens was published by the USDA in 1963.1 A substantial increase in sales volume would be expected when fryers are featured as a special. Such a change in volume should exceed the normal increase expected from just lowering the price without featuring the item. As a result, the demand function at a designated price level during a special sales promotion should shift to the right—larger sales at the same price. The interaction of price and special sales advertising might also be expected to change the slope of the demand function in a direction that would indicate an increase in price elasticity of demand. These changes would occur if consumers spent a greater percentage of their incomes on fryers in sale weeks than in nonsale weeks.

Suggested Citation

  • Gray, Leo R., 1964. "Effects of Price Specials on Volume of Sales of Frying Chickens," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 16(3), pages 1-5, July.
    • Handle: RePEc:ags:uersja:145842
    DOI: 10.22004/ag.econ.145842
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/145842/files/3Gray_16_3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.145842?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersja:145842. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.