04 Sales Promotion

Question 1

Literature Aliawadi et al. - Practice Prize Report: Quantifying and Improving Promotion Effectiveness at CVS

What did they do different than previous research?

Answer 1

First ones to take perspective of the retailer when it comes to sales promotion

Question 2

Literature Aliawadi et al. - Practice Prize Report: Quantifying and Improving Promotion Effectiveness at CVS

Key challenges they had?

Answer 2

1. Big data - challenging to obtain (managers where restrained to give out information that could lead to cutting their budgets)
2. Cannibalization of products
3. Quantifying promotions and measuring effects

Question 3

Literature Aliawadi et al. - Practice Prize Report: Quantifying and Improving Promotion Effectiveness at CVS

What is the halo effect?

Answer 3

When a customer not just buys promoted products but also non-promoted products