Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Experiments in Market Research Read chapter Read first chapter

2022 | OriginalPaper | Chapter

Measuring Sales Promotion Effectiveness

Author : Karen Gedenk

Published in: Handbook of Market Research

Publisher: Springer International Publishing

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

Sales promotions are an important marketing tool for both manufacturers and retailers. They include, for example, temporary price reductions, coupons, features, displays, sampling, and premiums. The bad news about promotions is that many of them are not profitable. The good news is that promotion effectiveness can be measured so that managers can identify the promotions which generate a profit and eliminate the ones that do not. This chapter presents data and models that can be used for this purpose. It focuses on panel data which is available at the aggregate (i.e., store) level and at the disaggregate (i.e., consumer) level. While aggregate data is more readily available and easier to analyze, disaggregate data allows for more detailed analyses. Several examples illustrate how models build on these data to measure promotion effectiveness. Since panel data has its limitations, it is often useful to complement it with surveys and/or experiments.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter Assessing the Financial Impact of Brand Equity with Short Time-Series Data
next chapter Return on Media Models
Literature
Abraham, M. M., & Lodish, L. M. (1993). An implemented system for improving promotion productivity using store scanner data. Marketing Science, 12(3), 248–269.CrossRef
Ailawadi, K. L., Neslin, S. A., & Gedenk, K. (2001). Pursuing the value-conscious consumer: Store brands versus National Brand Promotions. Journal of Marketing, 65(1), 71–89.CrossRef
Ailawadi, K. L., Harlam, B. A., César, J., & Trounce, D. (2006). Promotion profitability for a retailer: The role of promotion, brand, category, and store characteristics. Journal of Marketing Research, 43(4), 518–535.CrossRef
Ailawadi, K. L., Gedenk, K., Lutzky, C., & Neslin, S. A. (2007). Decomposition of the sales impact of promotion-induced stockpiling. Journal of Marketing Research, 44(3), 450–467.CrossRef
Arora, N., & Henderson, T. (2007). Embedded premium promotion: Why it works and how to make it more effective. Marketing Science, 26(4), 514–531.CrossRef
Bell, D. R., Chiang, J., & Padmanabhan, V. (1999). The decomposition of promotional response: An empirical generalization. Marketing Science, 18(4), 504–526.CrossRef
Bijmolt, T. H. A., van Heerde, H. J., & Pieters, R. G. M. (2005). New empirical generalizations on the determinants of price elasticity. Journal of Marketing Research, 42(2), 141–156.CrossRef
Bronnenberg, B. J., Kruger, M. W., & Mela, C. F. (2008). The IRI marketing data set. Marketing Science, 27(4), 745–748.CrossRef
Chen, S.-F. S., Monroe, K. B., & Lou, Y.-C. (1998). The effects of framing price promotion messages on consumers’ perceptions and purchase intentions. Journal of Retailing, 74(3), 353–372.CrossRef
Foekens, E. W., Leeflang, P. S. H., & Wittink, D. R. (1999). Varying parameter models to accomodate dynamic promotion effects. Journal of Econometrics, 89(1/2), 249–268.
Fong, N. M., Fang, Z., & Luo, X. (2015). Geo-conquesting: Competitive locational targeting of mobile promotions. Journal of Marketing Research, 52(5), 726–735.CrossRef
Gedenk, K. (2002). Verkaufsförderung. München: Vahlen.
Gedenk, K. (2006). Controlling von Verkaufsförderungsmaßnahmen. In S. Reinecke & T. Tomczak (Eds.), Handbuch Marketingcontrolling (2nd ed., pp. 573–592). Gabler: Wiesbaden.CrossRef
Gedenk, K., Neslin, S. A., & Ailawadi, K. A. (2010). Sales promotion. In M. Krafft & M. K. Mantrala (Eds.), Retailing in the 21st century (2nd ed., pp. 393–407). Berlin: Springer.CrossRef
Gupta, S. (1988). Impact of sales promotions on when, what, and how much to buy. Journal of Marketing Research, 25(4), 342–355.CrossRef
Haans, H., & Gijsbrechts, E. (2011). “One-deal-fits-all?” on category sales promotion effectiveness in smaller versus larger supermarkets. Journal of Retailing, 87(4), 427–443.CrossRef
Luo, X., Andrews, M., Fang, Z., & Phang, C. W. (2014). Mobile targeting. Management Science, 60(7), 1738–1756.CrossRef
N.N. (2002, May 24). Promotions – Fass ohne Boden? Lebensmittelzeitung, p. 36.
Neslin, S. A., & Macé, S. (2004). The determinants of pre- and postpromotion dips in sales of frequently purchased goods. Journal of Marketing Research, 41(3), 339–350.CrossRef
Neslin, S. A., & Schneider Stone, L. G. (1996). Consumer inventory sensitivity and the postpromotion dip. Marketing Letters, 7(1), 77–94.CrossRef
Nijs, V., Dekimpe, M. G., Steenkamp, J.-B. E. M., & Hanssens, D. M. (2001). The category-demand effects of price promotions. Marketing Science, 20(1), 1–22.CrossRef
Train, K. (2009). Discrete choice methods with simulation (2nd ed.). Cambridge: Cambridge University Press.
Van Heerde, H. J., & Neslin, S. A. (2017). Sales promotion models. In B. Wierenga & R. van der Lans (Eds.), Handbook of marketing decision models (2nd ed., pp. 13–78). Berlin: Springer.CrossRef
van Heerde, H. J., Leeflang, P. S. H., & Wittink, D. R. (2000). The estimation of pre- and postpromotion dips with store-level scanner data. Journal of Marketing Research, 37(3), 383–395.CrossRef
van Heerde, H. J., Leeflang, P. S. H., & Wittink, D. R. (2001). Semiparametric analysis to estimate the deal effect curve. Journal of Marketing Research, 38(2), 197–215.CrossRef
van Heerde, H. J., Leeflang, P. S. H., & Wittink, D. R. (2002). How promotions work: Scan*pro-based evolutionary model building. Schmalenbach Business Review, 54(3), 198–220.CrossRef
van Heerde, H. J., Gupta, S., & Wittink, D. R. (2003). Is 75% of the sales promotion bump due to brand switching? No, only 33% is. Journal of Marketing Research, 40(4), 481–491.CrossRef
van Heerde, H. J., Leeflang, P. S. H., & Wittink, D. R. (2004). Decomposing the sales promotion bump with store data. Marketing Science, 23(3), 317–334.CrossRef
Wansink, B., Kent, R. J., & Hoch, S. J. (1998). An anchoring and adjustment model of purchase quantity decisions. Journal of Marketing Research, 35(1), 71–81.CrossRef
Wittink, D. R., Addona, M. J., Hawkes, W. J., & Porter, J. C. (1987). Scan*pro: A model to measure short-term effects for promotional activities on brand sales, based on store-level scanner data, Working paper, Cornell University.
Metadata
Title
Measuring Sales Promotion Effectiveness
Author
Karen Gedenk
Copyright Year
2022
Book
Handbook of Market Research

Print ISBN: 978-3-319-57411-0

Electronic ISBN: 978-3-319-57413-4

Copyright Year: 2022

DOI
https://doi.org/10.1007/978-3-319-57413-4_32