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Price Promotions and Brand Loyalty: Empirical Evidence for the German Breakfast Cereals Market AgEcon
Empen, Janine; Loy, Jens-Peter; Weiss, Christoph R..
Price promotions are important marketing activities for (food) retailers; brand loyalty is a major requisite to foster brands' assets. Several theoretical papers have analyzed the relationship between price promotions and brand loyalty resulting in mixed or perhaps contradictory outcomes; only a few empirical studies for (European) grocery markets are available to test which model(s) might be most relevant to reflect pricing strategies in food retailing. In this analysis, two detailed data sets for the German ready-to-eat breakfast cereals market are merged to investigate the relationship between price promotions and brand loyalty. We find significant empirical evidence that stronger brands tend to be promoted less frequently at lower discounts compared to...
Tipo: Conference Paper or Presentation Palavras-chave: Price Promotion; Brand Loyalty; Food Retailing; Ready-to-Eat Cereals; Germany; Instruments; Tobit; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 2011 URL: http://purl.umn.edu/114341
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