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New Insights Into Supermarket Promotions Via Scanner Data Analysis: The Case Of Milk

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  • Green, Geoffrey M.
  • Park, John L.

Abstract

Supermarket companies expend significant resources and employ many promotional activities so as to convince consumers to shop their stores. This analysis investigates the promotional activities of a single retail food company to determine the price and promotion responsiveness of fluid milk products that differ by milkfat content. It utilizes weekly, store-level scanner data. Seasonality and advertising are significant determinants of retail sales of fluid milk. Own-price elasticities are negative, and cross-price elasticities are positive for all milk types and are significant and elastic in the case of 2% milk. Advertising effects are positive and statistically significant. The response to advertising is much more pronounced for reduced-fat milk types than it is for whole milk.

Suggested Citation

  • Green, Geoffrey M. & Park, John L., 1998. "New Insights Into Supermarket Promotions Via Scanner Data Analysis: The Case Of Milk," Journal of Food Distribution Research, Food Distribution Research Society, vol. 29(3), pages 1-10, November.
    • Handle: RePEc:ags:jlofdr:26836
    DOI: 10.22004/ag.econ.26836
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    References listed on IDEAS

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    1. Jensen, Kim, 1995. "Fluid Milk Purchase Patterns in the South: Effects of Use of Nutrition Information and Household Characteristics," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 644-657, December.
    2. Capps, Oral, Jr. & Lambregts, Johannes Adrianus, 1991. "Assessing Effects Of Prices And Advertising On Purchases Of Finfish And Shellfish In A Local Market In Texas," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-14, July.
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    8. Eastwood, David B. & Gray, Morgan D. & Brooker, John R., 1994. "Supermarket Patronage: An Analysis Of Customer Counts Among Outlets Within A Geographic Area," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(2), pages 1-9, September.
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    Cited by:

    1. Bernard, Daria J. & Mathios, Alan D., 2005. "Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes," 2005 Annual meeting, July 24-27, Providence, RI 19366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Rebecca Cleary & Rigoberto Lopez, 2014. "Supermarket responses to Wal-Mart Supercenter expansion: a structural approach," Empirical Economics, Springer, vol. 47(3), pages 905-925, November.
    3. Mikhail Krivko & Lukáš Moravec & Gabriela Kukalová & Luboš Smutka & Daniela Šálková, 2021. "Frequent Discounts and Loss of VAT for the State Budget of the Czech Republic: Scenario Estimations for Milk," Sustainability, MDPI, vol. 13(11), pages 1-14, June.
    4. Cuma Akbay & Gulgun Yildiz Tiryaki, 2008. "Unpacked and packed fluid milk consumption patterns and preferences in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 9-20, January.
    5. Vickner, Steven S. & Davies, Stephen P. & Fulton, Joan R. & Vantreese, Valerie L., 2000. "Estimating Market Power And Pricing Conduct For Private-Label And National Brands In A Product-Differentiated Oligopoly: The Case Of A Frozen Vegetable Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(2), pages 1-13, July.
    6. Glaser, Lewrene K. & Thompson, Gary D., 2000. "Demand For Organic And Conventional Beverage Milk," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36346, Western Agricultural Economics Association.

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