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Breadth and depth of promotional sales in food retailing

Author

Listed:
  • Thomas GLAUBEN

    (IAMO, Halle, Germany)

  • Kristin HANSEN

    (KraftFoods, Zug, Switzerland)

  • Jens-Peter LOY

    (Department of Agricultural Economics, University of Kiel, Germany)

  • Christoph R. WEISS

    (Vienna University of Economics and Business (WU), Austria)

Abstract

Temporary price reductions (sales) as a means of promotion have become an increasingly important tool in the marketing mix of food retailers around the world. This paper investigates the retailers' pricing strategy by explicitly accounting for the multi-product nature of retailing. We find that retailers systematically adjust the breadth and depth of sales over time and they respond aggressively to their rivals' promotional activities. Finally, the breadth and depth of sales are found to be substitutes in the set of the available strategies to increase the store traffic.

Suggested Citation

  • Thomas GLAUBEN & Kristin HANSEN & Jens-Peter LOY & Christoph R. WEISS, 2011. "Breadth and depth of promotional sales in food retailing," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(3), pages 145-149.
    • Handle: RePEc:caa:jnlage:v:57:y:2011:i:3:id:158-2010-agricecon
    DOI: 10.17221/158/2010-AGRICECON
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    References listed on IDEAS

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    1. Elizabeth J. Warner & Robert B. Barsky, 1995. "The Timing and Magnitude of Retail Store Markdowns: Evidence from Weekends and Holidays," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 321-352.
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    3. Kurata, Hisashi & Liu, John J., 2007. "Optimal promotion planning--depth and frequency--for a two-stage supply chain under Markov switching demand," European Journal of Operational Research, Elsevier, vol. 177(2), pages 1026-1043, March.
    4. Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
    5. Daniel Hosken & David Reiffen, 2001. "Multiproduct retailers and the sale phenomenon," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 115-137.
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    Cited by:

    1. Jia Niu & Shanshan Jin & Ge Chen & Xianhui Geng, 2024. "How Can Price Promotions Make Consumers More Interested? An Empirical Study from a Chinese Supermarket," Sustainability, MDPI, vol. 16(6), pages 1-21, March.

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