Measuring Short- and Long-Run Promotional Effectiveness on Scanner Data Using Persistence Modeling

20 Pages Posted: 9 Mar 2004

See all articles by M. G. Dekimpe

M. G. Dekimpe

Catholic University of Leuven (KUL) - Department of Applied Economics; Erasmus Research Institute of Management (ERIM)

Dominique M Hanssens

University of California, Los Angeles (UCLA) - Anderson School of Management

Vincent R. Nijs

Northwestern University - Department of Marketing

Jan‐Benedict EM Steenkamp

University of North Carolina (UNC) at Chapel Hill - Marketing Area

Date Written: 27 2003, 11

Abstract

The use of price promotions to stimulate brand and firm performance is increasing. We discuss how (i) the availability of longer scanner data time series, and (ii) persistence modeling, have lead to greater insights into the dynamic effects of price promotions, as one can now quantify their immediate, short-run, and long-run effectiveness. We review recent methodological developments, and illustrate how the analysis of numerous brands and product categories has resulted in various empirical generalizations. Finally, we argue that persistence modeling should not only be applied to traditional performance metrics such as sales, but also to metrics such as firm value and customer equity.

Keywords: promotional effectiveness, scanner data, time-series analysis, persistence

JEL Classification: M, M31, C44

Suggested Citation

Dekimpe, Marnik and Hanssens, Dominique M and Nijs, Vincent R. and Steenkamp, Jan-Benedict E. M., Measuring Short- and Long-Run Promotional Effectiveness on Scanner Data Using Persistence Modeling (27 2003, 11). ERIM Report Series Reference No. ERS-2003-087-MKT. Available at SSRN: https://ssrn.com/abstract=474427

Marnik Dekimpe (Contact Author)

Catholic University of Leuven (KUL) - Department of Applied Economics ( email )

Leuven, B-3000
Belgium
+32 16 326 957 (Phone)
+32 16 326 732 (Fax)

HOME PAGE: http://www.econ.kuleuven.ac.be/tew/academic/market/members/MarnikDekimpe.htm

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1715/9576 (Phone)
+31 10 408 9011 (Fax)

HOME PAGE: http://web.eur.nl/fbk/dep/dep3/about/members/people/mdekimpe

Dominique M Hanssens

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
310-825-4497 (Phone)
310-206-7422 (Fax)

HOME PAGE: http://www.anderson.ucla.edu/faculty/dominique.hanssens/

Vincent R. Nijs

Northwestern University - Department of Marketing ( email )

Kellogg School of Management
2001 Sheridan Rd.
Evanston, IL 60208
United States

Jan-Benedict E. M. Steenkamp

University of North Carolina (UNC) at Chapel Hill - Marketing Area ( email )

CB 3490
Chapel Hill, NC 27599
United States
919-962-9579 (Phone)

HOME PAGE: http://www.kenan-flagler.unc.edu/Faculty/search/detail.cfm?person_id=860

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