A Multiple-discrete/Continuous Model of Price Promotion

摘要: Understanding the effect of temporary price reductions, or promotions, on sales consumer packaged goods is an area ongoing interest, both in academia and practice. Price however, are becoming increasingly important method managing demand for fresh produce items. Modeling impact promotions must take into account differentiated nature fact that consumers tend to purchase multiple items only a few products available them. Neither continuous nor discrete model appropriate. In this paper, we apply multiple-discrete/continuous study promotion retail apple sales. Our findings show brand switching/category incidence closer 65/35 than more usual 80/20 rule (80 percent switching 20 incidence) when decision appropriately taken consideration.