Template-Type: ReDIF-Paper 1.0
Author-Name: Teunter, L.H.
Author-Name-Last: Teunter
Author-Name-First: Linda
Author-Name: Teunter, R.H.
Author-Name-Last: Teunter
Author-Name-First: Ruud
Title: Profitability of price promotions if stockpilling increases consumption
Abstract: Price promotions induce consumers to purchase higher-than-usual quantities, resulting in higher stocks that lead to increased consumption. We show for a stylized model with a single shop and a single loyal customer that because of this stockpiling effect, promotions can be profitable even if they do not attract extra customers.
Creation-Date: 2004-03-19
File-URL: https://repub.eur.nl/pub/1198/ei200410.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 2004-10
Handle: RePEc:ems:eureir:1198