Drèze, Xavier, Nisol, Patricia and Vilcassim, Naufel J. 
ORCID: 0000-0003-0192-8014
(2004)
Do promotions increase store expenditures? A descriptive study of household shopping behavior.
Quantitative Marketing and Economics, 2 (1).
pp. 59-95.
ISSN 1573-711X
Abstract
An important question for retailers is whether promotions induce households to increase their in-store expenditures or merely reallocate a predetermined shopping budget. Should expenditures be fixed, retailers might decrease their profitability when running promotions by displacing expenditures from high margin to lower margin products. Using household level store receipts and an extended AIDS model, we provide evidence that while household expenditures do increase with promotions, there is also a significant reallocation of expenditures among the different categories. This implies that retailers have to choose carefully which products are promoted, if promotions are to increase profits.
| Item Type: | Article |
|---|---|
| Official URL: | http://link.springer.com/journal/11129 |
| Additional Information: | © 2004 Kluwer Academic Publishers |
| Divisions: | Management |
| Subjects: | H Social Sciences > HG Finance |
| Date Deposited: | 26 Jan 2017 15:08 |
| Last Modified: | 20 Dec 2024 00:31 |
| URI: | http://eprints.lse.ac.uk/id/eprint/68971 |
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