The Impact of Product Substitution and Retail Capacity on the Timing and Depth of Price Promotions: Theory and Evidence

2011 ◽  
Author(s):  
Mehmet Gumus ◽  
Philip Kaminsky ◽  
Sameer Mathur
Keyword(s):  
Product Substitution ◽  
Price Promotions ◽  
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.

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
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