RT info:eu-repo/semantics/article
T1 Optimal retail price promotions
A1 Beltov, Tor
A1 Jorgensen, Steffen
A1 Zaccour, Georges
A2 Ediciones Universidad de Valladolid
K1 Economía política
K1 Economía de empresa
AB The paper proposes a dynamic optimization model for a retailer's price promotions of two brands in a product category. There is no general concensus in empirical marketing literature on what are the impacts of a promotion on intertemporal consumer behavior. This paper will focus on three effects: (1) The immediate, and positive, impact of a price deal on the sales of a promoted brand; (2) Brand substitution, where some consumers switch from a nonpromoted brand to a lower priced promoted brand; and (3) Consumers stockpile a promoted brand during a deal period, which affects postpromotional demand. The paper characterizes the magnitude of discounts as well as the timing and durations of promotions. Optimal policies for a myopic and a forward looking retailer are identified. We also provide comparative statics that identify the dependence of discounts and durations upon key model parameters
SN 0213-7569
YR 2006
FD 2006
LK http://uvadoc.uva.es/handle/10324/19790
UL http://uvadoc.uva.es/handle/10324/19790
LA spa
NO Anales de estudios económicos y empresariales, 2006, N.16, pags.9-36
DS UVaDOC
RD 05-may-2024