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Multiproduct Food Retail Sales: A Case Study for Germany

  • Hansen, Kristin
  • Loy, Jens-Peter
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    Temporary price reductions (sales) as a means of promotional measures have become an increasingly important tool in the marketing mix of German food retailers. Various models have been proposed to explain the rationales behind such pricing strategies. Recently these models have been extended to capture the multiproduct nature of retail business. In this paper German retail food scanner data over two years are used to estimate a three step procedure to explain breadth and depth of sales, and their impact on category revenues.

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    File URL: http://purl.umn.edu/6568
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    Paper provided by International European Forum on Innovation and System Dynamics in Food Networks in its series 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria with number 6568.

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    Date of creation: 2007
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    Handle: RePEc:ags:iefi07:6568
    Contact details of provider: Web page: http://uf.ilb.uni-bonn.de/innovation2007

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    1. Conlisk, John & Gerstner, Eitan & Sobel, Joel, 1984. "Cyclic Pricing by a Durable Goods Monopolist," The Quarterly Journal of Economics, MIT Press, vol. 99(3), pages 489-505, August.
    2. Rajiv Lal & J. Miguel Villas-Boas, 1998. "Price Promotions and Trade Deals with Multiproduct Retailers," Management Science, INFORMS, vol. 44(7), pages 935-949, July.
    3. Daniel Levy & Haipeng (Allan) Chen & Sourav Ray & Mark Bergen, 2004. "Asymmetric Price Adjustment in the Small: An Implication of Rational Inattention," Working Papers 2004-08, Bar-Ilan University, Department of Economics.
    4. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    5. Martin Pesendorfer, 2002. "Retail Sales: A Study of Pricing Behavior in Supermarkets," The Journal of Business, University of Chicago Press, vol. 75(1), pages 33-66, January.
    6. Sobel, Joel, 1984. "The Timing of Sales," Review of Economic Studies, Wiley Blackwell, vol. 51(3), pages 353-68, July.
    7. Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
    8. Gupta, Sunil & Cooper, Lee G, 1992. " The Discounting of Discounts and Promotion Thresholds," Journal of Consumer Research, University of Chicago Press, vol. 19(3), pages 401-11, December.
    9. Daniel Hosken & David Reiffen, 2001. "Multiproduct retailers and the sale phenomenon," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 115-137.
    10. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
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