When to launch a sales promotion for online fashion products? An empirical study

Haiqing Hu and Pandu R. Tadikamalla ()
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Haiqing Hu: Shandong Yingcai University
Pandu R. Tadikamalla: University of Pittsburgh

Electronic Commerce Research, 2020, vol. 20, issue 4, No 3, 737-756

Abstract: Abstract Sales promotion will increase sales of online fashion products, but very little research has been performed to address when to launch a promotion after a new product is released. We address this question by considering collective selection from the perspective of fashion theory and by integrating signals of trust that are of common concern of consumers in the e-commerce setting. We develop semiparametric regression models to estimate the sales promotion effect to decide when a promotion should be launched. These models are also used to analyze the sales promotion effect of complementary matching, the previous sales promotion and the characteristics of the sales promotion event. The results show evidence regarding (1) the best time to launch a promotion after a product is released online; (2) the existence of a saturation effect of cumulative sales, which represents credible information of trust; and (3) the promotion effect of the complementary matching, the previous promotion and the characteristics of the promotion event.

Keywords: Promotion; Fashion; Saturation; Complementary matching (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10660-019-09330-1

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