Long-run effects of price promotions in scanner markets
نویسندگان
چکیده
Good marketing decisions require managers’ understanding of the response function relating performance measures to variations in the marketing mix. We use unit-root techniques to address market response in evolving markets, with a focus on their response to price promotions. We distinguish between evolution at the primary-demand vs. selective-demand level, and examine four consumer product categories for which high-quality scanner records are available. We find category and brand sales to be predominantly stationary, with differences in promotional impact between national and private-label brands. Even in the rare occurrence of performance evolution, the long-term effects of price promotions are not necessarily positive. ( 1999 Elsevier Science S.A. All rights reserved. JEL classification: C22; C32; M31
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