Seminario Académico - Effects of Price Promotions: A Large-Scale Field Experiment Dynamic

El Departamento de Economía de la Universidad de Chile tiene el agrado de invitar a usted a un nuevo Seminario Académico:

Título - Effects of Price Promotions: A Large-Scale Field Experiment Dynamic

Autores - Carlos Noton (CEA, Universidad de Chile),  Rosario Macera,  Andrés Elberg y Pedro Gardete

Presentador - Carlos Noton

Resumen - A number of casual reports have suggested that more attractive promotions increase customers’ subsequent promotion sensitivity. This paper investigates this claim by varying the promotion depth of products sold in two major supermarket chains in Chile, across 17 categories in 24 stores. During the first half of the experiment we manipulate promotion depth by assigning staggered promotions with 30% discounts to treated stores and with 10% discounts to control stores. The second half of the experiment repeats the promotion staggering scheme but keeps all discounts at 10%. We find that treated customers are 14% more likely to buy promoted items during the second half of the experiment, and the basket proportion of promoted items bought increases in approximately 21%. Back of the envelope calculations through a parsimonious demand and supply model suggest that manufacturers’ profits decrease in 6% as a result of heightened promotion sensitivity resulting from the experimental manipulation.

El  Seminario  se realizará el miércoles 22 de julio de 13:00 a 14:00 hrs, en  la Sala P-307 Tercer Piso del edificio Placa de la Facultad de Economía y Negocios de la Universidad de Chile, ubicada en Diagonal Paraguay 257.