The long-term effects of price promotion on store- and national brands

• Main Author: 方嘉伶
• Other Authors: 唐瓔璋
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/37807124030987626454

碩士 === 國立交通大學 === 經營管理研究所 === 95 === In order to demonstrate the long-term interaction between brands, we apply the time series model, VAR, to analyze the Chicago Dominick's Finer Food Database. We chose 13 national brand products and 1 store brand product in bath tissue category. The result divides these products into four groups, according to the stability of their sales and average price discounts in the long run. Products which have stationary sales and average price discounts are cash cows or market niches which won’t be influenced by small competitors in the long run. Most of the top 5 products have stationary sales but unstable average price discounts, and it implies that they are probably the potential triggers for the price promotions in the market. Products which have unstable sales but stable average price discounts are small brands, and it means that the brand sales is fluctuated by other competitors. Finally, products which have unstable sales and average price discounts are probably new products. They can’t control their sales and lack of information to decide the proper discounts. In this research, there is no new products. My result also indicates store brand’s price promotion activities always follow the market leader. Moreover, the store brand’s promotion might interfere the long term market equilibrium and negatively influence the sales of the other brands. The bigger the national brand is, the greater the impact is.