 The battle for health and beauty: What drives supermarket and drugstore category-promotion lifts?Arjen van Lin and Els Gijsbrechts International Journal of Research in Marketing, 2016, vol. 33, issue 3, 557-577 Abstract: This paper studies promotion-induced competition between supermarkets and drugstores, resulting from increased channel blurring and category overlap. It documents the relative impact of price cuts and feature ads at the two channels, and establishes substantive factors underlying their differences in promotion effectiveness. Estimates from a household-level model of category purchase incidence, store choice, and quantity, in five large health and beauty-care categories, show that the promotion effects are much larger for supermarket than drugstore chains. Though this partly follows from asymmetries in the channels' drawing power and from differences in in-store response, a key driver is the accessibility of promotional price information: because they are visited more frequently than drugstores and their store flyers are read more often, supermarkets gain relatively more from price cuts and feature ads than drug chains. Managerial implications are discussed. Keywords: Promotion competition; Channel blurring; Supermarkets; Drugstores; Store flyers; Feature ads (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:33:y:2016:i:3:p:557-577 DOI: 10.1016/j.ijresmar.2015.09.002 Access Statistics for this article International Journal of Research in Marketing is currently edited by Roland Rust More articles in International Journal of Research in Marketing from Elsevier |
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