We revisit and test Salop and Stiglitz (1982) Theory of Sales. Equilibrium predictions are that higher consumer storage costs lead to: (1) higher average prices, (2) fewer promotions, and (3) shallower promotions. Empirical estimates of storage cost are developed for approximately 1,000...

The mispricing of marketing performance indicators (such as brand equity, churn, and customer satisfaction) is an important element of arguments in favor of the financial value of marketing investments. Evidence for mispricing can be assessed by examining whether or not portfolios composed of...

Monthly demand for publicly supplied water to U.S. residences and businesses is estimated from a 10-year panel of 167 cities. A periodic error correction model integrates monthly, annual, and long-run time scales. Statistical consistency is validated by unit root tests adapted to the monthly...

When a product's price fluctuates at a store, how should rational, cost-minimizing shoppers shop for it? Specifically, how frequently should they visit the store, and how much of the product should they buy when they get there? Would this rational shopping behavior differ across Every Day Low...

Price promotions are used extensively in marketing for one simple reason—consumers respond. The sales increase for a brand on promotion could be due to consumers accelerating their purchases (i.e., buying earlier than usual and/or buying more than usual) and/or consumers switching their choice...

Manufacturer trade promotion spending is second only to cost of goods sold as a profit-and-loss item, yet manufacturers often lose money on these deals as a result of forward-buying by retailers. The search for more effective forms of trade promotion and the availability of scanners at cash...

Biofuels are expected to represent a growing portion of liquid fuel consumption in Thailand due to environmental and social considerations in conjunction with policy goals supporting their domestic production and consumption. This paper reviews the economic costs associated with biofuel policy...

The authors develop and test a model to study the in uence of inventory-on-hand and price-based reference points on the consumption rate of consumers. The model is motivated by recent theoretical and empirical research which suggests inventory pressure can cause consumers to increase...