Assessing the Impact of Retail Price Promotions on Product Substitution, Complementary Purchase, and Interstore Sales Displacement

1991 ◽  
Vol 55 (2) ◽  
pp. 17 ◽  
Author(s):  
Rockney G. Walters
Keyword(s):  
Retail Price ◽  
Product Substitution ◽  
Price Promotions ◽  
The Impact

scholarly journals Research on Closed-Loop Supply Chain with Competing Retailers under Government Reward-Penalty Mechanism and Asymmetric Information

2020 ◽  
Vol 2020 ◽  
pp. 1-20 ◽  
Author(s):  
Xiao-qing Zhang ◽  
Xi-gang Yuan ◽  
Da-lin Zhang
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Recovery Rate ◽  
Carbon Emission ◽  
Closed Loop ◽  
Retail Price ◽  
Closed Loop Supply Chain ◽  
Weee Recycling ◽  
The Impact ◽  
Decentralized Model

In manufacturer-led closed-loop supply chain (CLSC) with two competing retailers, the retailer-1 recycles WEEE whose fixed recycling cost is asymmetric information. Using dynamics game theory and principal-agent theory, three dynamic game models are built including (1) benchmark model without reward-penalty mechanism (RPM); (2) decentralized model with carbon emission RPM; (3) decentralized model with carbon emission RPM and recovery rate RPM. This paper discusses the influence of RPM and retailers competition on the CLSC and members benefits. The results show that (1) the carbon emission RPM increases retail price, but decreases the WEEE recycling motivation usually. On the contrary, the recovery rate RPM guides WEEE recycling and lowers the retail price effectively. (2) In any case, the retailer-1’s profit is higher than that of the retailer-2; apparently it suggests that the retailer recycling WEEE gains competitive advantages. Furthermore, both the recovery rate RPM and retailers competition are beneficial to improve the competitive advantage. The relationship between two retailers’ retail price is affected by many complicated factors. (3) The WEEE buyback price and WEEE recovery rate with high fixed recycling cost (H-type) are always higher than that of low fixed recycling cost (L-type), respectively, which means that the H-type fixed recycling cost has scale advantages; the greater the reward-penalty intensity and the fiercer the competition, the more obvious the scale advantages under certain condition. (4) The retailers’ competition can not only guide WEEE recycling but also improve retailers’ profits. Meanwhile, the impact of competition on the manufacturer is related to RPM, but the fierce competition decreases the manufacturer’s profit.

The Relationship between Retail Price Promotions and Regular Price Purchases

1995 ◽  
Vol 59 (4) ◽  
pp. 83-90 ◽  
Author(s):  
Francis J. Mulhern ◽  
Daniel T. Padgett
Keyword(s):  
Positive Relationship ◽  
Retail Price ◽  
Price Promotions ◽  
Significant Positive Relationship ◽  
The Relationship ◽  
Regular Price

Retailers offer temporary price promotions to attract shoppers to stores and encourage them to purchase regular price merchandise. Existing research has found little evidence that price promotions affect regular price sales, possibly because published studies have not directly examined individual purchase baskets to determine if shoppers buying promoted items also purchase regular price items. The authors match actual purchases of individual shoppers with an in-store survey to determine the relationship between regular price and promotion purchasing. The results show a significant, positive relationship between regular price and promotion purchases. Among shoppers who identify the promotion as one of their reasons for visiting the store, three-fourths make regular price purchases. On average, these shoppers spend more money on regular price merchandise than on promotion merchandise. Also, the results show that shoppers visiting the store for the promotion are no less profitable to the store than other shoppers.

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 Research on the Dynamics Game Model in a Green Supply Chain: Government Subsidy Strategies under the Retailer’s Selling Effort Level

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-15 ◽  
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Dynamic Game ◽  
Retail Price ◽  
Green Supply Chain ◽  
Government Subsidy ◽  
Principal Agent Theory ◽  
Effort Level ◽  
The Impact ◽  
Selling Effort

Based on dynamic game theory and the principal-agent theory, this paper examined different government subsidy strategies in green supply chain management. Assuming that the retailer’s level of selling effort involved asymmetric information, this study analyzed the impact of different government subsidy strategies on the wholesale price, the product greenness level, retail price, the level of selling effort, the manufacturer’s profit, and the retailer’s profit. The results showed that (1) the government’s subsidy strategy can effectively not only improve the product greenness level but also increase the profits of an enterprise in a green supply chain, which helps the retailer to enhance their selling effort; (2) regardless of whether the retailer’s level of selling effort was high or low, as the government’s subsidy coefficient increased, the wholesale price continued to decrease, and the product greenness level and retailer’s selling effort level also increased.

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.

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