Supermarket Promotions and Food Prices

Hao Lan, T. A. Lloyd and C. W. Morgan

No 169749, 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France from Agricultural Economics Society

Abstract: Using a sample comprising nearly a quarter of a million weekly prices from the largest seven supermarket chains in the UK, we present statistical evidence on two pricing practices that have attracted public interest. Analysing price dynamics before and after periods of promotional discounting the investigation finds first, no evidence of a general tendency for sales to disguise rises in the regular price, and second, some evidence for prices to rise prior to sales in a manner that is consistent with the exaggeration of the discount. As such, the results parallel the competition authority’s view of supermarkets use of promotions and also point to the useful contribution that retail price microdata might play in keeping prices in check.

Keywords: Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing (search for similar items in EconPapers)
Pages: 13
Date: 2014-04
New Economics Papers: this item is included in nep-agr, nep-com and nep-mkt
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Working Paper: Supermarket Promotions and Food Prices (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc14:169749

DOI: 10.22004/ag.econ.169749

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