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Electronic Commerce Research

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25-01-2019

When to launch a sales promotion for online fashion products? An empirical study

Authors: Haiqing Hu, Pandu R. Tadikamalla

Published in: Electronic Commerce Research | Issue 4/2020

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Abstract

Sales promotion will increase sales of online fashion products, but very little research has been performed to address when to launch a promotion after a new product is released. We address this question by considering collective selection from the perspective of fashion theory and by integrating signals of trust that are of common concern of consumers in the e-commerce setting. We develop semiparametric regression models to estimate the sales promotion effect to decide when a promotion should be launched. These models are also used to analyze the sales promotion effect of complementary matching, the previous sales promotion and the characteristics of the sales promotion event. The results show evidence regarding (1) the best time to launch a promotion after a product is released online; (2) the existence of a saturation effect of cumulative sales, which represents credible information of trust; and (3) the promotion effect of the complementary matching, the previous promotion and the characteristics of the promotion event.

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The sales rank referenced is the Amazon Best Sellers Rank, which is calculated based on Amazon.com sales and is updated hourly to reflect recent and historical sales of every item sold on Amazon.com. In order to keep these lists fresh, useful, and up-to-date, recent sales are weighted more heavily than sales that occurred in the distant past. Amazon does not publish the actual quantity of items that have sold. The best sellers rank is a relative measure to illustrate the sales of each item in comparison to the others. https://www.amazon.com/gp/help/customer/display.html/ref=help_search_1-1?ie=UTF8&nodeId=201929910&qid=1513001235&sr=1-1

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Title: When to launch a sales promotion for online fashion products? An empirical study
Authors: Haiqing Hu
Pandu R. Tadikamalla
Publication date: 25-01-2019
Publisher: Springer US
Published in: Electronic Commerce Research / Issue 4/2020
Print ISSN: 1389-5753
Electronic ISSN: 1572-9362
DOI: https://doi.org/10.1007/s10660-019-09330-1

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