Agric. Econ. - Czech, 2011, 57(3):145-149 | DOI: 10.17221/158/2010-AGRICECON
Breadth and depth of promotional sales in food retailing
- 1 IAMO, Halle, Germany
- 2 KraftFoods, Zug, Switzerland
- 3 Department of Agricultural Economics, University of Kiel, Germany
- 4 Vienna University of Economics and Business (WU), Austria
Temporary price reductions (sales) as a means of promotion have become an increasingly important tool in the marketing mix of food retailers around the world. This paper investigates the retailers' pricing strategy by explicitly accounting for the multi-product nature of retailing. We find that retailers systematically adjust the breadth and depth of sales over time and they respond aggressively to their rivals' promotional activities. Finally, the breadth and depth of sales are found to be substitutes in the set of the available strategies to increase the store traffic.
Keywords: multi-product food retail pricing, promotional sales, Germany, milk products
Published: March 31, 2011 Show citation
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