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The Negative and Positive Consequences of Placing Nonpromoted Products Next to Promoted Products.
- Source :
- Journal of Marketing; Nov2023, Vol. 87 Issue 6, p928-948, 21p
- Publication Year :
- 2023
-
Abstract
- This research investigates how a price promotion on a fast-moving consumer good influences the sales of substitute products in a retail shelf or online display. An analysis of supermarket yogurt data finds that when nonpromoted 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 nonpromoted 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 that 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). [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00222429
- Volume :
- 87
- Issue :
- 6
- Database :
- Complementary Index
- Journal :
- Journal of Marketing
- Publication Type :
- Academic Journal
- Accession number :
- 172890447
- Full Text :
- https://doi.org/10.1177/00222429231172111