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The objective of this study was two fold: first, we wanted to test the goodness of fit of different diffusion models that include the variable “distribution”, and then analyze the existence of the effects of “country” and “time” in the parameters of diffusion currently employed in different European countries. The literature on the matter suggests, on the one hand, that the diffusion models applied so far that employ multi‐equation systems are not obviously better than other single‐equation models that ignore marketing variables; and, on the other hand, that the socio‐economic environment and the time‐lag are both factors of the differences that the diffusion process offers among different geographical areas. As a novelty, our methodology proposes single‐equation models that include the distribution, to which several indicators of the goodness of fit are applied, along with statistical tests on the differences in parameters among countries. The empirical application carried out in Spain, France and Italy demonstrates the superiority of the model proposed here, based on the Generalized Bass model. It also indicates a “country” effect, between Spain and France as well as between Italy and France

This paper aims to propose models that capture the own effect of price promotions of virtue and vice products on sales and cross effects within the subcategory, between subcategories and between periods. The hypotheses assume that, due to reverse consumption self-control, the demand for vice products is more price-sensitive than demand for virtue products, but the demand for vice products is less price-sensitive between periods than demand for virtue products; furthermore, due to the degree of impulse-buying and to licensing, the demand sensitivity of the products of a subcategory and of those of other subcategories varies according to the type of promoted product (vice or virtue).

The methodology is based on different econometrical models that estimate the total net effect of price promotions of virtue and vice products on sales.

The results show a greater own effect for price promotions of vice products than for virtue products. However, the complementary sales effect between subcategories for virtue products facilitates greater expansion of the subcategory in virtue products than in vice products.

Although price promotions of virtue products (light) and vice products (regular) have proliferated in recent years, researchers have only estimated their own sales effect. Alternatively, the paper contributes by considering own and cross effects.