Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer

Ömer Zeybek; Burç Ülengin

doi:10.1007/978-3-030-85626-7_107

Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer

Ömer Zeybek^*, Burç Ülengin

^*Corresponding author for this work

Department of Management Engineering

Migros Ticaret AŞ R&D Center

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

1 Citation (Scopus)

Abstract

Sales promotion is a primary tool included in the marketing mix that can arbitrate the sales trend. Retailers need to deploy business analytics to measure and define key performance indicators to determine an accurate measurement of return in investment for individual promotions. In this context, the need for an advanced Decision Support System (DSS) to orchestrate promotion strategy is critical for the companies. A brand-level model, which will assess promotional performances of brands within the category, could provide a helpful tool to retailers both for category management and price promotions activity allocation. This research estimates promotion/sales elasticity models for 11 brand-category groups to assess promotion efficiency using the ARDL bounds test method. Brand-level model, we estimated points that own price and promotion depth effect have the most significant impact magnitude on sales. Auto-regressive Distributed Lag type models we employed for this analysis enable us to differentiate long- and short-term analysis.

Original language	English
Title of host publication	Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference
Editors	Cengiz Kahraman, Selcuk Cebi, Sezi Cevik Onar, Basar Oztaysi, A. Cagri Tolga, Irem Ucal Sari
Publisher	Springer Science and Business Media Deutschland GmbH
Pages	921-928
Number of pages	8
ISBN (Print)	9783030856250
DOIs	https://doi.org/10.1007/978-3-030-85626-7_107
Publication status	Published - 2022
Event	International Conference on Intelligent and Fuzzy Systems, INFUS 2021 - Istanbul, Turkey Duration: 24 Aug 2021 → 26 Aug 2021

Publication series

Name	Lecture Notes in Networks and Systems
Volume	307
ISSN (Print)	2367-3370
ISSN (Electronic)	2367-3389

Conference

Conference	International Conference on Intelligent and Fuzzy Systems, INFUS 2021
Country/Territory	Turkey
City	Istanbul
Period	24/08/21 → 26/08/21

Bibliographical note

Publisher Copyright:
© 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Keywords

Econometric time series
Marketing analytics
Price promotions

Access to Document

10.1007/978-3-030-85626-7_107

Cite this

Zeybek, Ö., & Ülengin, B. (2022). Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer. In C. Kahraman, S. Cebi, S. Cevik Onar, B. Oztaysi, A. C. Tolga, & I. U. Sari (Eds.), Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference (pp. 921-928). (Lecture Notes in Networks and Systems; Vol. 307). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-030-85626-7_107

Zeybek, Ömer ; Ülengin, Burç. / Sales Promotion Effectiveness : The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer. Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference. editor / Cengiz Kahraman ; Selcuk Cebi ; Sezi Cevik Onar ; Basar Oztaysi ; A. Cagri Tolga ; Irem Ucal Sari. Springer Science and Business Media Deutschland GmbH, 2022. pp. 921-928 (Lecture Notes in Networks and Systems).

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abstract = "Sales promotion is a primary tool included in the marketing mix that can arbitrate the sales trend. Retailers need to deploy business analytics to measure and define key performance indicators to determine an accurate measurement of return in investment for individual promotions. In this context, the need for an advanced Decision Support System (DSS) to orchestrate promotion strategy is critical for the companies. A brand-level model, which will assess promotional performances of brands within the category, could provide a helpful tool to retailers both for category management and price promotions activity allocation. This research estimates promotion/sales elasticity models for 11 brand-category groups to assess promotion efficiency using the ARDL bounds test method. Brand-level model, we estimated points that own price and promotion depth effect have the most significant impact magnitude on sales. Auto-regressive Distributed Lag type models we employed for this analysis enable us to differentiate long- and short-term analysis.",

keywords = "Econometric time series, Marketing analytics, Price promotions",

author = "{\"O}mer Zeybek and Bur{\c c} {\"U}lengin",

note = "Publisher Copyright: {\textcopyright} 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.; International Conference on Intelligent and Fuzzy Systems, INFUS 2021 ; Conference date: 24-08-2021 Through 26-08-2021",

year = "2022",

doi = "10.1007/978-3-030-85626-7_107",

language = "English",

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series = "Lecture Notes in Networks and Systems",

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editor = "Cengiz Kahraman and Selcuk Cebi and {Cevik Onar}, Sezi and Basar Oztaysi and Tolga, {A. Cagri} and Sari, {Irem Ucal}",

booktitle = "Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference",

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Zeybek, Ö & Ülengin, B 2022, Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer. in C Kahraman, S Cebi, S Cevik Onar, B Oztaysi, AC Tolga & IU Sari (eds), Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference. Lecture Notes in Networks and Systems, vol. 307, Springer Science and Business Media Deutschland GmbH, pp. 921-928, International Conference on Intelligent and Fuzzy Systems, INFUS 2021, Istanbul, Turkey, 24/08/21. https://doi.org/10.1007/978-3-030-85626-7_107

Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer. / Zeybek, Ömer; Ülengin, Burç.
Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference. ed. / Cengiz Kahraman; Selcuk Cebi; Sezi Cevik Onar; Basar Oztaysi; A. Cagri Tolga; Irem Ucal Sari. Springer Science and Business Media Deutschland GmbH, 2022. p. 921-928 (Lecture Notes in Networks and Systems; Vol. 307).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Sales Promotion Effectiveness

T2 - International Conference on Intelligent and Fuzzy Systems, INFUS 2021

AU - Zeybek, Ömer

AU - Ülengin, Burç

PY - 2022

Y1 - 2022

N2 - Sales promotion is a primary tool included in the marketing mix that can arbitrate the sales trend. Retailers need to deploy business analytics to measure and define key performance indicators to determine an accurate measurement of return in investment for individual promotions. In this context, the need for an advanced Decision Support System (DSS) to orchestrate promotion strategy is critical for the companies. A brand-level model, which will assess promotional performances of brands within the category, could provide a helpful tool to retailers both for category management and price promotions activity allocation. This research estimates promotion/sales elasticity models for 11 brand-category groups to assess promotion efficiency using the ARDL bounds test method. Brand-level model, we estimated points that own price and promotion depth effect have the most significant impact magnitude on sales. Auto-regressive Distributed Lag type models we employed for this analysis enable us to differentiate long- and short-term analysis.

AB - Sales promotion is a primary tool included in the marketing mix that can arbitrate the sales trend. Retailers need to deploy business analytics to measure and define key performance indicators to determine an accurate measurement of return in investment for individual promotions. In this context, the need for an advanced Decision Support System (DSS) to orchestrate promotion strategy is critical for the companies. A brand-level model, which will assess promotional performances of brands within the category, could provide a helpful tool to retailers both for category management and price promotions activity allocation. This research estimates promotion/sales elasticity models for 11 brand-category groups to assess promotion efficiency using the ARDL bounds test method. Brand-level model, we estimated points that own price and promotion depth effect have the most significant impact magnitude on sales. Auto-regressive Distributed Lag type models we employed for this analysis enable us to differentiate long- and short-term analysis.

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DO - 10.1007/978-3-030-85626-7_107

M3 - Conference contribution

AN - SCOPUS:85115075404

SN - 9783030856250

T3 - Lecture Notes in Networks and Systems

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BT - Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference

A2 - Kahraman, Cengiz

A2 - Cebi, Selcuk

A2 - Cevik Onar, Sezi

A2 - Oztaysi, Basar

A2 - Tolga, A. Cagri

A2 - Sari, Irem Ucal

PB - Springer Science and Business Media Deutschland GmbH

Y2 - 24 August 2021 through 26 August 2021

ER -

Zeybek Ö, Ülengin B. Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer. In Kahraman C, Cebi S, Cevik Onar S, Oztaysi B, Tolga AC, Sari IU, editors, Intelligent and Fuzzy Techniques for Emerging Conditions and Digital Transformation - Proceedings of the INFUS 2021 Conference. Springer Science and Business Media Deutschland GmbH. 2022. p. 921-928. (Lecture Notes in Networks and Systems). doi: 10.1007/978-3-030-85626-7_107

Sales Promotion Effectiveness: The Impact of Category – Brand Level Price Promotions on Sales Performance of a Large Retailer

Abstract

Publication series

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Bibliographical note

Keywords

Access to Document

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