The rational effect of price promotions on sales and consumption
Management Science
The Category-Demand Effects of Price Promotions
Marketing Science
Consumer Learning, Brand Loyalty, and Competition
Marketing Science
The Additive Risk Model for Purchase Timing
Marketing Science
Decomposing the Sales Promotion Bump with Store Data
Marketing Science
Who Benefits from Store Brand Entry?
Marketing Science
Structural Modeling in Marketing: Review and Assessment
Marketing Science
Retail Competition and the Dynamics of Demand for Tied Goods
Marketing Science
Expert Systems with Applications: An International Journal
Marketing Science
An EOQ model of homogeneous products while demand is salesmen's initiatives and stock sensitive
Computers & Mathematics with Applications
Demand Dynamics in the Seasonal Goods Industry: An Empirical Analysis
Marketing Science
Marketing Science
Ushering Buyers into Electronic Channels: An Empirical Analysis
Information Systems Research
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Over the years, researchers have found that promotion makes consumers switch brands and purchase earlier or more. However, it is unclear how promotion affects consumption, especially for product categories that are perceived to be versatile and substitutable. In this paper, we propose a dynamic structural model with endogenous consumption under promotion uncertainty to analyze the promotion effect on consumption. This model recognizes consumers as rational decision makers who form promotion expectations and plan their purchase and consumption decisions in light of promotion schedule. Applying the proposed model to packaged tuna and yogurt, we find that endogenous consumption responds to promotion as a result of forward-looking and stockpiling behavior. This is the first empirical paper that recognizes consumption as an endogenous decision variable and proposes a structural model to offer behavioral explanations on whether, how, and why promotion encourages consumption for product categories with flexible consumption.