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Measuring Price Promotion Effects: An Econometric Exercise in Measuring the Impact of Marketing Decision Making (only available in printed journal)

IJME vol 1 issue 1

SAMPLE

Author(s): Klaus Wertenbroch

Abstract:
The purpose of this exercise is to provide students with a precise, hands-on tool to measure the effect of price promotions. Specifically, the exercise exposes students to, and allows them to work with, real store-level scanner data of the sort that retailers are collecting store-by-store on a weekly basis. The exercise provides students with an opportunity to estimate regular and promotional price elasticities of demand for two disguised soft-drink brands.