EXPRESS: The Negative and Positive Consequences of Placing Products Next to Promoted Products

Autor: Christina Kan, Yan (Lucy) Liu, Donald R. Lichtenstein, Chris Janiszewski
Rok vydání: 2023
Předmět:
Zdroj: Journal of Marketing. :002224292311721
ISSN: 1547-7185
0022-2429
Popis: This research investigates how a price promotion on a fast-moving consumer good influences the sales of substitute products in a retail shelf/online display. An analysis of supermarket yogurt data finds that when non-promoted products are strong substitutes for the promoted product, a 1% decrease in the price of the promoted product results in a .25% decrease in the sales of proximal products but no change in the sales of distal products – a negative promotion-proximity effect. However, when non-promoted products are weak substitutes for the promoted product, a 1% decrease in the price of the promoted product results in a .10% increase in the sales of proximal products but no change in sales for distal products – a positive promotion-proximity effect. Subsequent studies show these effects occur because a proximal strong substitute is more likely to enter a consideration set with the promoted product (negative promotion-proximity effect) and a proximal weak substitute is more likely to be seen and considered by a consumer who is not interested in the promoted product (positive promotion-proximity effect).
Databáze: OpenAIRE