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This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying sales level information increases consumer price sensitivity, which is a potential strategic risk to retailers.

Study 1 uses eBay data to investigate whether the interaction effects between price and sales level can be observed in an existing market. Study 2 involves online experiments across three product categories. Participants choose from product pairs that are shown with either the same or different prices and with no, the same or different sales levels.

Study 1 shows strong effects of a product’s displayed sales and price level on its daily sales but finds no interaction effect. Study 2 shows strong effects of price and sales levels on product choice but similarly finds no evidence that sales level information influences consumer price sensitivity, although it reveals an effect on quality perceptions. The results show how perceptions of quality, sacrifice and popularity mediate the effects of price and sales level information on product choice.

Study 1 has limited control over prices and sales levels. Study 2 involves only hypothetical choices.

These findings indicate that businesses can use sales level information to manage consumer product quality perceptions and choices without having to be concerned that this will make consumers more price-sensitive.

To the best of the authors’ knowledge, this paper is the first to investigate how sales level information affects consumer responses to price differences in online contexts.

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.

To analyze the impact of temporary retail price discount on a consumer goods product category using semiparametric regression and considering different promotional price discount characteristics as well as brand characteristics.

A semiparametric regression model using Support Vector Machines, which aim to evaluate retailers' decisions about temporary price discounts, has been developed. The model is derived from the analysis of historical sales data, which provide precise evaluation of previous temporary price discounts periods. The model is also consistent with ample empirical evidence showing that historical retail sales data can be used to evaluate the impact of past promotions.

Provides an estimation of the shape of the deal effect curve, indicating which temporary price discounts are more effective to increase sales and showing the existence of different threshold and saturation levels. Confirms that promotional price discounts accelerate sales especially during week ends. Evidences that promoting high‐priced (high‐quality) brands has a stronger impact on sales of low‐priced (low‐quality) brands than the reverse and that cross‐price effects are stronger on the sales of brands with similar prices. Suggests the convenience of the use of the proposed semiparametric methodology to the study of the promotional effects considered.

It is not possible to generalize the modelled shapes of the deal effect curves. There is no information available on feature advertising nor displays. It is important to determine the generalizability of these results to the study of additional promotional effects. It would also be interesting to assume that the retailer's deal policy is exogenous.

Provides a relevant tool to assess the set of price promotional periods by the grocery retailer. With a more precise and accurate knowledge about the performance of past temporary price cuts, retailers can implement more effective promotional periods.

The purpose of this study is to estimate the relative contributions of individual marketing mix variables to sales as well as short‐term and long‐term effects of advertising in India.

Time‐series data on sales and marketing mix variables have been collected for two brands. Two double‐log regression modes have been fitted on data to estimate the relative contribution of each effort as well as to isolate the amount of sales due to advertising only. In addition, a log‐linear partial‐adjustment model has been fitted on adjusted sales and advertising data to estimate both short‐term and long‐term effects of advertising.

Results reveal that all the marketing mix variables have significant relative contributions to sales in both the cases. It is also found that advertising does have significant short‐term and long‐term effects on adjusted sales for both the brands.

Findings provide a deep insight in dynamic perspective of advertising that make them eminently suitable in the process of allocation of budget to achieve both the short‐term and long‐term goals of advertising.

This research made a notable contribution to the literature due to lack of quantitative modeling works on marketing data reported in the field of advertising in India.

The adoption of a model‐building approach to marketing is today inevitable, due to improvements in hardware and software and the increased professionalisation of marketing and its techniques. Aggregate response models are focused upon, particularly the issues of which responses are realistic and should be modelled, how the response can be expressed and how a choice can be made between options available. The traditional model‐building process is described, and the inclusion of correct variables found to be critical, the primary means of doing this being statistical analysis. Simple expressions perform as effectively as more complex ones, and should be used if able to give operationally meaningful results. Cross‐correlation analysis and biased estimation techniques provide good guides to usable variables and their effects.

This paper aims to identify the effects of social learning and network externalities by conditioning on product quality and early sales momentum. This approach is demonstrated using film sales data.

This study used econometric modeling approach.

It was found that both social learning and network externalities have significant and comparable impacts on film choice. We show that the relative effects of network externalities and social learning in the film market are robust to different momentum and quality definitions and to alternative estimation methods.

Scholars have long argued that social learning plays a key role in new product diffusion. In some product categories, consumer choice may also be influenced by network externalities, meaning that purchasing popular products may provide the consumer utility above and beyond that derived from product usage directly. We propose a novel identification approach to help quantify the relative magnitude of these two effects on new product sales.

With the popularity of social media and, recently, live streaming, internet celebrity endorsements have become a prevalent approach to content marketing for e-commerce sellers. Despite the widespread use of social media and online communities, empirical studies investigating the economic value of user-generated content (UGC) and marketer-generated content (MGC) still lag behind. The purpose of this paper is to contribute both theoretically and practically to capture both first-order effects and second-order effects of internet celebrity endorsements on marketing outcomes in an e-commerce context.

This study conducts a cross-sectional regression to evaluate the economic value of internet celebrity endorsement, and a panel vector autoregressive model is adopted to examine the relationship between celebrities’ and consumers’ content marketing behaviors and e-commerce sales performance. The authors also adopt look-ahead propensity-score matching technique to correct for selection bias.

The empirical results show that the content generation efforts of marketers and the interaction behaviors between marketers and consumers will significantly influence the e-commerce sales, which refers to the first-order effects of internet celebrity endorsement. Moreover, interactions within the fan community exert second-order effects of content marketing on sales performance.

This paper provides new insights for e-commerce retailers to evaluate the economic values of internet celebrity endorsement, a new content marketing practice in e-commerce platform.

We examine whether variations in the most fundamental aspects of state corporate income tax regimes affect state economic activity as measured by personal income, gross state product, and total non-farm employment. We focus on a variety of statutory components of state corporate income taxes that apply broadly in most U.S. states and for most multi-state corporate taxpayers. Our econometric strategy consists of a series of fixed effects panel regressions using state-level data from 1996 through 2010. Our results reveal important interaction effects of tax rates and policies, suggesting that policy makers should avoid making decisions about tax rates in isolation. The results demonstrate a relatively consistent negative economic response to the combination of high tax rates with throwback rules and heavy sales factor weights. Combined reporting has no discernible effect on personal income, GSP, or employment after controlling for tax rates, apportionment, and throwback rules. In an effort to gauge the relative impacts of tax policies on the location of economic activity, we also estimate alternative models in which each state’s economic activity is measured as a share of the national economic activity in each year. Statistically significant effects for tax rates, apportionment formulas, and throwback rules in the shares models suggest that at least some of their impact involves the movement of activity across state lines, thereby leaving open the possibility of a zero-sum game among the states.

The purpose of this paper is to provide an understanding of the effects of advertising based on economic cycles. To comprehend advertising effects in the restaurant industry from an economic cycle perspective, this study investigated both short- and long-run advertising effects under periods of economic contraction and expansion and compared those effects between the two economic periods.

The data were collected from the COMPUSTAT database for the restaurant industry (SIC 5,812) from 1979 to 2010. To estimate the economic cycles, the 2005 year-based real gross domestic product (GDP) was used from the Bureau of Economic Analysis. Also, all variables were depreciated by the value of the US dollar in 2005. For estimation, a single equation error correction model was used to examine the short-term and long-term effects of advertising.

The results of this study indicated that both the short- and long-term effects of advertising on sales growth were more obvious in contraction periods than in expansion periods. However, the short-run effects of advertising on brand equity did not significantly differ between expansion and contraction periods. Further, the long-term effects of advertising on brand equity were greater in expansion periods than in contraction periods. The findings suggest that restaurant firms should not reduce their advertising budgets during periods of economic contraction to take advantage of superior sales growth outcomes during these periods.

The results of this study provide restaurant managers with useful practical implications. During economic contraction periods, restaurant managers should not reduce advertising budgets to take an ascendant position in terms of sales growth. Though the net positive effect at year t + 1 of contraction periods was smaller than that of expansion periods for sales growth, this is temporal and the long-run positive effect on sales growth spreads into future periods. Thus, a counter-cyclical advertising strategy could compensate for reduced sales from weak customer demands during economic contraction periods.

There have been many empirical studies on the advertising effect in the literature. However, this study examined whether the effects of advertising differ between economic expansion and contraction periods. This specificity is helpful for industrial practitioners as well as academic researchers.

This study aims to examine how the effect of pop-ups on an omnichannel brand’s subsequent online sales is moderated by the brand’s online price and premium promotions, paid search and popularity signaling.

Using a difference-in-differences approach, this study appraises variations in two similar Chinese apparel brands’ online sales before and after one of the brands’ implementations of its pop-ups and how the brand’s online promotions modify the pop-ups’ effect.

Unique, interactive pop-ups boost brands’ subsequent online sales. Online price promotions negatively moderate the effect; online premium promotions and paid search positively moderate it. Moreover, the product’s popularity diminishes the extent to which a pop-up stimulates online demand. These findings can be partially generalized to other categories, such as utilitarian products.

Only certain online strategies enhance the effect of pop-ups on brands’ online sales, so practitioners should strategically select appropriate promotion combinations when they operate pop-ups and allocate resources across channels. In addition, the moderating influence of online promotions on pop-ups depends on the type of product being promoted.

Pop-ups offer proven abilities to deliver sensory experiences to online shoppers, reinforce brand awareness and loyalty and boost online sales. This study extends prior research by examining how various online promotions moderate pop-ups’ effects.