The Impact of Price Promotions on Producer Strategies in Markets With Large Product Heterogeneity

Agribusiness ◽  
2012 ◽  
Vol 28 (4) ◽  
pp. 421-439 ◽  
Author(s):  
Luca Panzone ◽  
Richard Tiffin
Keyword(s):  
Price Promotions ◽  
Product Heterogeneity ◽  
Large Product ◽  
The Impact

A Structural Equations Analysis of the Impact of Price Promotions on Store Performance

1988 ◽  
Vol 25 (1) ◽  
pp. 51-63 ◽  
Author(s):  
Rockney G. Walters ◽  
Scott B. Mackenzie
Keyword(s):  
Past Research ◽  
Structural Equations ◽  
Conventional Wisdom ◽  
Microeconomic Theory ◽  
Price Promotions ◽  
Structural Relationships ◽  
Store Performance ◽  
Loss Leader ◽  
The Impact

Guided by past research, conventional wisdom in the retailing area, and microeconomic theory, the authors develop a series of hypotheses about the effects of loss leaders, in-store price specials, and double coupon promotions on overall store sales, profit, and traffic. The resulting system of structural relationships is tested and cross-validated with data from two large supermarkets. The findings indicate that (1) though most of the loss leader promotions had no effect on store profit, those loss leaders that did affect profit did so through their effect on store traffic rather than through their effect on sales of the promoted items, (2) double coupon promotions affected profit by increasing sales of products purchased with a coupon rather than by increasing store traffic, and (3) in-store price specials appear to have had no effect on store profit, sales, or traffic. The results of the study also emphasize the importance of building store traffic to increase retailer profit and of examining the effects of price promotions within the context of a system of relevant equations.

scholarly journals Impact of Price Reduction Sensitivity on Brand Switching and Storage: The Case of Saudi Arabia

2020 ◽  
Vol 11 (4) ◽  
pp. 23
Author(s):  
Imen Zrelli ◽  
Mbarek Rahmoun
Keyword(s):  
Hand Washing ◽  
Price Reduction ◽  
Purchase Behavior ◽  
Purchasing Behavior ◽  
Price Promotions ◽  
Female Consumers ◽  
Brand Switching ◽  
Post Purchase ◽  
The Impact ◽  
And Storage

Sensitivity to price promotions has recently caught the attention of marketing researchers and professionals. It is true that lowering prices makes it possible to attract customers who are sensitive to such reductions, but is it profitable for the company to target those who are most sensitive to price reductions? The assumption is that sensitivity to price reductions reinforces brand switching and decreases re-purchasing rates. In order to test the relationships between the different variables, a two-section questionnaire was designed. The first section probes for information on the brands usually acquired and the second section targets re-purchasing behavior after buying at a price reduction. Thus, 231 Saudi female consumers were selected as a sample representing voluntary purchasers of hand washing powder. The results of this study highlight the impact of price reduction sensitivity on post-purchase behavior.

On the Impact of Geographic Distance on the Interregional Patterns of Production and Trade

1981 ◽  
Vol 13 (5) ◽  
pp. 605-622 ◽  
Author(s):  
Karin Peschel
Keyword(s):  
Spatial Pattern ◽  
Research Work ◽  
Spatial Association ◽  
Geographic Distance ◽  
Final Conclusion ◽  
Minor Importance ◽  
The Past ◽  
Interregional Interaction ◽  
Product Heterogeneity ◽  
The Impact

The paper questions the ‘classical’ concept of distance on which interregional interaction models of the linear programming and the gravitation type are based. In contrast to the conclusions drawn from several econometric studies by Gordon inter alia the following hypotheses are suggested: There is no spatial stability in the relationship between flow levels and geographic distance with respect to particular commodity groups because of historical and geographical particularities in connection with product heterogeneity and oligopolistic market structure. If at all, a distance variable may explain the patterns of production and trade on an aggregate level. This factor of distance is neither equivalent to the transportation costs of today, nor does it fully represent the communication costs of today. It rather reflects the influence of the past on the contemporary spatial pattern of production and trade. With respect to international trade the impact of distance is of minor importance compared to the influence of cultural and linguistic affinity of spatial association and political relationship. These hypotheses are supported by quoting the results of several studies of the Institut für Regionalforschung der Universität Kiel arrived at in the past few years. All this research work centred on the question of how the spatial pattern of production and trade was influenced by national borders and geographic distance in the course of the European economic integration process. The final conclusion of the paper is the need for a theoretical reorientation.

Assessing the Impact of Price Promotions on Consumer Response to Online Stockouts

2015 ◽  
Vol 36 (3) ◽  
pp. 260-272 ◽  
Author(s):  
Simone T. Peinkofer ◽  
Terry L. Esper ◽  
Ronn J. Smith ◽  
Brent D. Williams
Keyword(s):  
Consumer Response ◽  
Price Promotions ◽  
The Impact

Long-term brand development versus short-term business targets: the impact of price promotions on branded food products

2012 ◽  
Vol 20 (7) ◽  
pp. 609-624 ◽  
Author(s):  
Jonathan Maxwell ◽  
Audrey Gilmore ◽  
Damian Gallagher ◽  
David Falls
Keyword(s):  
Food Products ◽  
Short Term ◽  
Price Promotions ◽  
Brand Development ◽  
The Impact

scholarly journals Follow the Money: A Closer Look at US Tobacco Industry Marketing Expenditures

2021 ◽  
Author(s):  
David T Levy ◽  
Alex Liber ◽  
Chris Cadham ◽  
Luz Maria Sanchez ◽  
Andrew Hyland ◽  
...  
Keyword(s):  
Smokeless Tobacco ◽  
Tobacco Industry ◽  
Purchase Price ◽  
Price Promotions ◽  
Federal Policies ◽  
Price Discounts ◽  
Excise Taxes ◽  
Settlement Agreement ◽  
Marketing Expenditures ◽  
The Impact

Introduction: While much of the concern with tobacco industry marketing has focused on direct media advertising, a less explored form of marketing strategy is to discount prices. Price discounting is important because it keeps the purchase price low and can undermine the impact of tax increases. Methods: We examine annual marketing expenditures from 1975 to 2019 by the largest cigarette and smokeless tobacco companies. We consider three categories: direct advertising, promotional allowances, and price discounting. In addition to considering trends in these expenditures, we examine how price discounting expenditures relate to changes in product prices and excise taxes. Results: US direct advertising expenditures for cigarettes fell from 80% of total industry marketing expenditures in 1975 to less than 3% in 2019, while falling from 39% in 1985 to 6% in 2019 for smokeless tobacco. Price-discounting expenditures for cigarettes became prominent after the Master Settlement Agreement and related tax increases in 2002. By 2019, 87% of cigarette marketing expenditures were for price discounts and 7% for promotional allowances. Smokeless marketing expenditures were similar: 72% for price promotions and 13% for promotional allowances. Price discounting increased with prices and taxes until reaching their currently high levels. Conclusions: While much attention focuses on direct advertising, other marketing practices, especially price discounting, has received less attention. Local, state and federal policies that use non-tax mechanisms to increase tobacco prices and restrict industry contracts with retailers are needed to offset/disrupt industry marketing expenditures. Further study is needed to better understand industry decisions about marketing expenditures.

Sign in / Sign up

Export Citation Format

Share Document