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Magazine Sales Promotion: A Dynamic Response Analysis

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Author Info
Mercedes Esteban-Bravo ()
Jose M. Mugica ()
Jose M. Vidal-Sanz ()

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Abstract

This paper studies the impact and effectiveness of a type of non-price promotion often used in the European periodical magazines industry to stimulate sales, in which a value pack is sold containing the magazine issue plus another product. Magazines are sold simultaneously with and without promotion at different prices, and promotions are serialized by fractioning the additional product across different issues of the magazine. We find that promoted magazines contemporarily cannibalize non-promoted sales; but this loss is compensated by a medium term increase of non-promoted sales. These results show that this sales promotion strategy is an effective way to diminish the decline rate of periodical sales.

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Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb065716.

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Date of creation: Oct 2006
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Handle: RePEc:cte:wbrepe:wb065716

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  1. G. Dekimpe, Marnik & Hanssens, Dominique M. & Silva-Risso, Jorge M., 1998. "Long-run effects of price promotions in scanner markets," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 269-291, November. [Downloadable!] (restricted)
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