1. Allocation of the household food budget among shopping basket items: How is it influenced by promotions?
- Author
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Mehaba, Wafa, Rahmani, Djamel, and Gil, José Maria
- Subjects
HOUSEHOLD budgets ,CONSUMPTION (Economics) ,SHOPPING ,BUDGET ,BASKETS - Abstract
Retailers have been using promotion as a differentiation strategy that influences consumers' expenditures and their shopping basket budgetary allocation. This study assessed the effect of retail promotions on total shopping basket expenditure and determined whether promotions provoke a reallocation of the shopping budget. The analysis was performed on a chain of supermarkets in Catalonia, Spain using a consumer scanner data set from Kantar Worldpanel for 2017. The methodological approach had two steps: prediction of the effect of promotion on household expenditures using an expenditure regression model and estimation of the promotion own- and cross-effect using the censored Exact Affine Stone Index. Promotion had a positive own-effect and mostly a negative asymmetric cross-effect, implying a small but significant budget reallocation. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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