The usual theoretical assumption that the retailer's promotional activities serve the
purpose of attracting customers into stores lacks empirical verification. The relationship
between promotional activity and customer count is examined empirically in just a few
studies, and no significantly positive association is found. This dissertation is a
comprehensive empirical study of a unique time series cross section dataset, which
contains scanner data representing 28 product categories in a large supermarket chain
over two and a half year long period. The main result of this dissertation is that retailer's
promotional activities are positively related to customer count. Two constructed
measures of the promotional activity have a positive significant effect on store traffic
that is comparable with the customer count effect of an average holiday. Some 55
percent of the positive long-run promotional activity effect is felt immediately, and the
remaining 45 percent is spread over a five week long period. The promotions have
prolonged effects that last until the next promotional peak -ÃÂÃÂ the next holiday. It is also
found that promotional discounts have positive and significant effect on store profit.
| Identifer | oai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/5880 |
| Date | 17 September 2007 |
| Creators | Tasic, Ivan |
| Contributors | Wiggins, Steven N. |
| Publisher | Texas A&M University |
| Source Sets | Texas A and M University |
| Language | en_US |
| Detected Language | English |
| Type | Book, Thesis, Electronic Dissertation, text |
| Format | 973751 bytes, electronic, application/pdf, born digital |
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