The Impacts of Retail Promotions on the Demand for Orange Juice: A Study of a Retail Chain |
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| Authors: | Jonq-Ying Lee Mark G Brown Rebecca H Chung |
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| Institution: | 1. Florida Department of Citrus , University of Florida , Gainesville, Floridajonqying@ufl.edu;3. Florida Department of Citrus , University of Florida , Gainesville, Florida;4. National Pingtung University of Science and Technology , Pingtung, Taiwan |
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| Abstract: | This study examined the impacts of retail promotions on the demand for five brands of orange juices for a retail chain (referred to as Retailer X) and its competitors using the Rotterdam model. Results show that the combination of feature ads and displays had the largest impacts on retail revenue among the four promotional tactics considered, whereas temporary price reductions had no advertising impacts on retail revenue. Results also show that when Retailer X promotes an orange juice (OJ) brand using any of the tactics, a larger portion of the increased demand for the promoted brand comes from reduced demand for other brands of OJ in the same store or chain.A smaller portion comes from the decreased demand in Retailer X's competing stores in the same trading area. |
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| Keywords: | Retail promotion Rotterdam model orange juice |
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