TY - JOUR

T1 - Price Promotions and Popular Events

AU - Keller, Wiebke I.Y.

AU - Deleersnyder, Barbara

AU - Gedenk, Karen

N1 - Publisher Copyright: © American Marketing Association 2018.

PY - 2019/1/1

Y1 - 2019/1/1

N2 - Managers often use popular events, such as the Olympics, to advertise their brands more heavily. Can manufacturers and retailers capitalize on these events to enhance the response to their price promotions? This study empirically examines whether the sales response to price promotions is stronger or weaker around events than at nonevent times, and what factors drive this relative promotion response. Studying 242 brands from 30 consumer packaged goods categories in the Netherlands over more than four years, the authors find that a price promotion offered around a popular event often generates a stronger sales response than the same promotion at nonevent times, with a price promotion elasticity that is 9.3% larger, on average, during events. Still, the variance in relative promotion response across brands and events is high, and the authors identify several drivers that managers should consider before shifting promotions toward event times. Currently, managers often do not take these drivers into account. This study provides guidelines to improve promotional timing decisions in relation to popular events.

AB - Managers often use popular events, such as the Olympics, to advertise their brands more heavily. Can manufacturers and retailers capitalize on these events to enhance the response to their price promotions? This study empirically examines whether the sales response to price promotions is stronger or weaker around events than at nonevent times, and what factors drive this relative promotion response. Studying 242 brands from 30 consumer packaged goods categories in the Netherlands over more than four years, the authors find that a price promotion offered around a popular event often generates a stronger sales response than the same promotion at nonevent times, with a price promotion elasticity that is 9.3% larger, on average, during events. Still, the variance in relative promotion response across brands and events is high, and the authors identify several drivers that managers should consider before shifting promotions toward event times. Currently, managers often do not take these drivers into account. This study provides guidelines to improve promotional timing decisions in relation to popular events.

KW - popular event

KW - price promotion

KW - promotion calendar

KW - sales response

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85070290022&partnerID=8YFLogxK

U2 - 10.1177/0022242918812055

DO - 10.1177/0022242918812055

M3 - Journal articles

AN - SCOPUS:85070290022

VL - 83

SP - 73

EP - 88

JO - Journal of Marketing

JF - Journal of Marketing

SN - 0022-2429

IS - 1

ER -