An analytical framework for retailer price and advertising decisions for products with temperature-sensitive demand
Régis Chenavaz,
Octavio Escobar and
Xavier Rousset
Additional contact information
Xavier Rousset: UPD5 - Université Paris Descartes - Paris 5
Post-Print from HAL
Abstract:
The demand for weather-sensitive products, such as beverages, ice creams, or chocolate varies with changes in temperature. Yet, retailers lack a framework to adapt the marketing mix elements, such as price and advertising, in line with such changes. We provide a theoretical framework to fill this gap by developing an analytical model to derive the optimal marketing mix when product demand depends on temperature. The model prescribes how price and advertising for different demand characteristics should be set following a temperature change. Integrating the temperature element in the marketing mix offers an original profit-enhancing strategy.
Keywords: Pricing; advertising; temperature; weather-sensitivity; marketing mix (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-com
Note: View the original document on HAL open archive server: https://amu.hal.science/hal-02484338
References: View references in EconPapers View complete reference list from CitEc
Citations:
Published in Applied Economics, 2019, 51 (52), pp.5683-5693. ⟨10.1080/00036846.2019.1617398⟩
Downloads: (external link)
https://amu.hal.science/hal-02484338/document (application/pdf)
Related works:
Journal Article: An analytical framework for retailer price and advertising decisions for products with temperature-sensitive demand (2019) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02484338
DOI: 10.1080/00036846.2019.1617398
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().