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An Analysis of the Effects of Promotion and Shelf Position on Store Revenue

Author

Listed:
  • Valter Afonso Vieria

    (Universidade Estadual de Maringá - UEM)

  • Luis Fernando Camilo

    (Universidade Estadual de Maringá - UEM)

Abstract

This article examines the influence of shelf placement and the ways of presenting prices at supermarkets. We carried out an experimental longitudinal study for three months in a supermarket involving nine common products, divided by placement into three shelf positions (upper area, middle area and lower area) and three price presentation strategies. These were the supermarket’s standard price sticker for the base month (control) and two new presentations: the first a poster with the appeal “Compare”, and the second the same type of poster with the appeal “Compare” plus “30% Discount”. We then analyzed the variations in sales of the products and the impact on the store’s revenues from the display areas. The results showed that: (i) higher stimuli (posters) boosted sales; (ii) the poster with the appeal “Compare” was the best form of price presentation; (iii) of the nine products studied, only four had a significant impact on the revenue in more than one month; and (iv) the middle (prime) shelf area attracted the most sales, followed by the lower area.

Suggested Citation

  • Valter Afonso Vieria & Luis Fernando Camilo, 2014. "An Analysis of the Effects of Promotion and Shelf Position on Store Revenue," Brazilian Business Review, Fucape Business School, vol. 11(4), pages 28-52, August.
    • Handle: RePEc:bbz:fcpbbr:v:11:y:2014:i:4:p:28-52
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    References listed on IDEAS

    as
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    3. Pechmann, Cornelia & Ratneshwar, S, 1991. "The Use of Comparative Advertising for Brand Positioning: Association versus Differentiation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 145-160, September.
    4. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," HEC Research Papers Series 698, HEC Paris.
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