Are Brand Promotions Just a Zero‐Sum Game – or Can They Increase the Size of the Pie?

Putsis, Jr. William P.

doi:10.1111/1467-8616.00072

Cited by 7 publications

(3 citation statements)

References 12 publications

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“…Consumers purchased greater quantities of the products when on promotion and consumed them faster. Putsis 20 and Putsis and Dhar 21 examined data from 59 markets in the United States and found that sales promotions across scores of food products in the early 1990s, particularly feature and display promotions, had a relatively small but significant impact on increased category consumption. Sun 22 found that between 12 and 25% of the sales increases related to tuna and yoghurt promotions were the result of increased category consumption.…”

Section: Lessons Learnedmentioning

confidence: 99%

Sales promotions and food consumption

2009

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Sales promotions are widely used to market food to adults, children, and youth. Yet, in contrast to advertising, practically no attention has been paid to their impacts on dietary behaviors, or to how they may be used more effectively to promote healthy eating. This review explores the available literature on the subject. The objective is to identify if and what literature exists, examine the nature of this literature, and analyze what can be learned from it about the effects of sales promotions on food consumption. The review finds that while sales promotions lead to significant sales increases over the short-term, this does not necessarily lead to changes in food-consumption patterns. Nevertheless, there is evidence from econometric modeling studies indicating that sales promotions can influence consumption patterns by influencing the purchasing choices of consumers and encouraging them to eat more. These effects depend on the characteristics of the food product, sales promotion, and consumer. The complexity of the effects means that sales promotions aiming to encourage consumption of nutritious foods need to be carefully designed. These conclusions are based on studies that use mainly sales data as a proxy for dietary intake. The nutrition (and economics) research communities should add to this existing body of research to provide evidence on the impact of sales promotions on dietary intake and related behaviors. This would help support the development of a sales promotion environment conducive to healthy eating.

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Section: Lessons Learnedmentioning

confidence: 99%

Sales promotions and food consumption

2009

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“…Insofar as RPI is important in determining a broadcaster’s income in the live streaming market, the income a broadcaster receives can be regarded as a specific type of performance-based contract ( Guan et al, 2022 ). Because marketing research suggests that the total amount that consumers are prepared to pay for a product during a specific period is relatively steady in a given market ( Putsis, 1998 ; Mittal and Sethi, 2011 ), the relative stability in terms of the amount viewers are prepared to tip broadcasters on a live streaming platform places the broadcasters in a similar scenario to a zero-sum game. Consequently, the live streaming market is analogous to a dynamic tournament environment in which broadcasters compete to provide viewer-satisfying content in exchange for viewer tips.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The moderating effect of appearance on the impact of performance rankings in the live streaming market

Chen

Huang

Zhao³

2022

Front. Psychol.

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The live streaming market is becoming increasingly competitive, and relative performance information regarding broadcasters is available to all participants in the live streaming industry, exacerbating the level of competition. Using data from 42,166 live streams by 293 broadcasters, we investigated two benefits of relative performance information in relation to the live streaming business and how these effects vary when the broadcaster appears competent, trustworthy, likable, or attractive. On the basis of economic and social comparison theory, as well as insights from the herd behavior and beauty premium literature, we predicted and found that relative performance information can improve live streaming performance by either increasing broadcaster effort (the effort-eliciting effect) or encouraging viewer participation (the informational effect), with these effects being stronger when broadcasters look more competent, trustworthy, likable, or attractive. The findings of this study contribute to the live streaming literature by demonstrating that providing relative performance information in the live streaming business can yield both effort-eliciting and informational benefits.

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“…From a conceptual standpoint, the substitutability of the category determines its price response and, therefore, it would be instructive to examine market structure and intercategory substitution relationships. Despite the emphasis on short-term promotion instruments, existing work on category promotional response may provide several useful foundations (Narasimhan, Neslin, & Sen, 1996;Putsis, 1998).…”

Section: Suggested Extensionsmentioning

confidence: 99%

Utility‐consistent Brand Demand Systems with Endogenous Category Consumption: Principles and Marketing Applications*

Baltas

2001

Decision Sciences

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This paper introduces the design and implementation of utility-consistent, brand, and category demand systems. It extends formal demand analysis to the area of brand and category demand, which directly concerns marketing researchers and managers. The proposed brand demand system is a set of interrelated demand functions that are derived explicitly from a utility function describing consumer preferences. The model generalizes by the integration of category expenditures, which are determined endogenously. The theoretical plausibility of the proposed demand model is demonstrated first and, subsequently, brand and category level systems are derived. Econometric methods for estimating the systems are also developed and illustrated in empirical data. The results yield empirically determined, quantitative insights into the structure of consumer demand for brands and product categories. The proposed approach has the attractive feature of structuring the interdependencies of consumer decisions and ensuring an explicit role for theory in applied research.

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Are Brand Promotions Just a Zero‐Sum Game – or Can They Increase the Size of the Pie?

Cited by 7 publications

References 12 publications

Sales promotions and food consumption

Sales promotions and food consumption

The moderating effect of appearance on the impact of performance rankings in the live streaming market

Utility‐consistent Brand Demand Systems with Endogenous Category Consumption: Principles and Marketing Applications*

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