| Summary: | 碩士 === 國立交通大學 === 經營管理研究所 === 94 === The past studies are limited in foods and do not prove whether price sensitive buyers purchase complementary or not. We will extend the study of promotional effects to FMCG category and, more importantly, to be empirical work on different price level of substitution and complementary products to advance promotional and merchandising practice.
The data is collected by Dominick’s Database, which contains canner data of 85 stores, 29 categories in the US. Because the database is so huge and based on the topic which is about brand substitution and complementary, we only choose toothbrush and tooth paste for our sample in this study from 277 to 328 week.
Our finding shows that price promotion appears to be an effective tool for brand substitute and full-margin complementary purchase of low unit price but do not useful for brand substitution of high unit price. There are a few possible of high price brand in tooth brush category may have complementary purchase. Most retailers do not consider the effect of promotion on sales of non promoted product. As a consequence, retailers may draw misleading conclusions about promotional effectiveness.
The success of retail price promotions depends on such factors as the ability of the promoted items to draw customers to the store, the profit (or loss) on the promoted item, the cannibalization that occurs when consumers switch away from regular-priced items to promoted items, and the boost in sales volumes of non-promoted items. If retailers can use scanner data and have professional marketing employee to suit consumer characteristics and environment changes with scientific method to make a market strategy and planning, it is expected to meet strong sales and growth targets, achieved through strategies for retailers.
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