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Abstract
This study examined the impacts of four promotional tactics—features, displays,
features and display together, and temporary price reductions—in context of a
conditional demand system for 12 beverages. The Rotterdam model with
promotion effects specified through the Tintner-Ichimura-Basmann relationship
was used in the empirical study. The estimated conditional-demand equations
exhibited relatively strong own- and cross-promotional effects, indicating a
relatively high level of competition for market share among the beverages studied.