Past price and trend effects in promotion planning; from prediction to prescription

Sales promotions are a popular type of marketing strategy. When undertaking a sales promotion, products are promoted using short-term price reductions to stimulate their demand and increase their sales. These sales promotions are widely used in practice by retailers. When undertaking a sales promotion, retailers must take into consideration both the direct and indirect effects of price promotions on consumers, and as a result, on the demand. In this thesis, we consider the impact of two of these indirect effects on the planning process of promotions. First, we consider the problem of the promotion planning process for fast-moving consumer goods. The main challenge when considering the promotion planning problem for fast-moving consumer goods is the negative indirect effect of promotions on future sales. While temporary price reductions substantially increase demand, in the following periods after a temporary price reduction, retailers observe a slowdown in sales.

Name thesis:degree_name

Doctoral

Department dc:contributor.department

Massachusetts Institute of Technology. Operations Research Center

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2020

Author dc:creator

• Cohen-Hillel, Tamar.

Advisor dc:contributor.advisor

• Georgia Perakis.

• Operations Research Center.

Statement dc:rights

• MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/129030

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/129030