 The Post-Promotion Dip Puzzle: What do the Data Have to Say?Igal Hendel and Aviv Nevo Quantitative Marketing and Economics (QME), 2003, vol. 1, issue 4, 409-424 Abstract: One of the puzzles of store-level scanner data is the lack of a dip in quantity sold in the weeks following a promotion. Such a dip is predicted by a consumer inventory model. During a promotion consumers buy more, not only for current consumption, but stockpile for future consumption. The predictions of such a model have been confirmed by household-level data yet seem harder to find in aggregate brand- or category-level data. We re-examine this puzzle and reach two conclusions. First, the effects at the household-level are present, but are much smaller than previously found. Our estimates are different because we control for household heterogeneity in a more general way than most previous work. This suggests that since the effects are small they might be harder to spot in aggregate data. Second, we show that the dip is present in the aggregate data, once we control for additional promotional activity, like feature and display. The latter has an opposing dynamic effect that masks the existence of the post-promotion dip. Copyright Kluwer Academic Publishers 2003 Keywords: sales; panel data methods (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:kap:qmktec:v:1:y:2003:i:4:p:409-424 Ordering information: This journal article can be ordered from DOI: 10.1023/B:QMEC.0000004844.32036.5a Access Statistics for this article Quantitative Marketing and Economics (QME) is currently edited by Pradeep Chintagunta More articles in Quantitative Marketing and Economics (QME) from Springer |
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