標題: | Optimal promotional strategy for intra-category cross-selling An application to culinary products in Taiwan |
作者: | Tang, Ying-Chan Wang, Yu-Mei Huang, Jiun-Yan 經營管理研究所 Institute of Business and Management |
關鍵字: | Budget allocation;Fast-moving consumer goods;Promotional strategy |
公開日期: | 2014 |
摘要: | Purpose - The aim of this paper is to investigate an optimal promotional strategy of intra-category cross-selling on culinary products for the fiercely competitive, fast-moving consumer goods (FMCG) industry. Design/methodology/approach - A linear regression model and a Markov switching autoregressive model is used, that incorporates a retailing demand process to capture a nonlinear structure among promotional budget allocation, and evaluate promotional performance, and optimal promotional frequency within a given time span. Three product categories are applied with 39 months of time-series data from a multinational packaged food company in Taiwan. Findings - The result shows that most previous decisions on promotional budget allocation are non-optimal - most promotional investments were either extended too long or allocated too low in stimulating sales. Research limitations/implications - This study suggests implications for the brand or category manager in removing such non-optimal promotional policies. Originality/value - Previous promotional investment is evaluated by comparing the changes in promotional budget allocation. Markov's switching feedback rules are then applied to determine the proper length of equilibrium state with and/or without promotion. Finally, effective decision rules on magnitude, duration, and frequency of intra-category promotional strategy are induced. |
URI: | http://hdl.handle.net/11536/23632 http://dx.doi.org/10.1108/BFJ-12-2011-0306 |
ISSN: | 0007-070X |
DOI: | 10.1108/BFJ-12-2011-0306 |
期刊: | BRITISH FOOD JOURNAL |
Volume: | 116 |
Issue: | 1 |
起始頁: | 80 |
結束頁: | 90 |
顯示於類別: | 期刊論文 |