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The impact of sales promotions on store performance: a structural vector autoregressive (SVAR) approach

Author

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  • Marzia Freo

Abstract

The paper analyses the impact of sales promotions on store performance, in the short and long term, from the retailer’s point of view. Relationships among promoted and regular sales in the hypermarkets of a large-scale retail chain of national importance, are investigated by means of a structural vector autoregressive model (SVAR). Statistically significant effects of sales promotions in the heavy household section on store sales are found in the short-run; these promotions produce additional sales and thus act as an attractive factor. Promotions in textile category, on the contrary, produce an immediate negative effect on net sales. In the long-run, negative statistically significant effects on regular sales are detected when continuative promotions are implemented within perishables’ category.

Suggested Citation

  • Marzia Freo, 2005. "The impact of sales promotions on store performance: a structural vector autoregressive (SVAR) approach," Quaderni di Dipartimento 3, Department of Statistics, University of Bologna.
    • Handle: RePEc:bot:quadip:wpaper:5
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    File URL: http://amsacta.cib.unibo.it/archive/00001077/01/quaderni_ricerche_2005_ImpactSales.pdf
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    Citations

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    Cited by:

    1. Sergio, Brasini & Marzia, Freo & Giorgio, Tassinari, 2008. "An analysis of the role of liking on the memorial response to advertising," MPRA Paper 12342, University Library of Munich, Germany.
    2. M. Hakan Berument & Zulal Denaux & Yeliz Yalcin, 2012. "Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4787-4798, December.
    3. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).

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