price promotions
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2022 ◽  
Vol 64 ◽  
pp. 102797
Author(s):  
Wenjing Li ◽  
David M. Hardesty ◽  
Adam W. Craig ◽  
Lei Song
Keyword(s):  

2021 ◽  
pp. e000229
Author(s):  
Omni Cassidy ◽  
Hye Won Shin ◽  
Edmund Song ◽  
Everett Jiang ◽  
Ravindra Harri ◽  
...  

BackgroundSocial media advertising by fast food companies continues to increase globally, and exposure to food advertising contributes to poor diet and negative health outcomes (eg, cardiovascular disease). McDonald’s—the largest fast food company in the world—operates in 101 countries, but little is known about their marketing techniques in various regions. The objective of this study was to compare the social media advertising practices of McDonald’s—the largest fast food company in the world—in 15 high-income, upper-middle-income and lower-middle-income countries.MethodsWe randomly selected official McDonald’s Instagram accounts for 15 high-income, upper-middle-income and lower-middle-income countries. We captured all the screenshots that McDonald’s posted on those Instagram accounts from September to December 2019. We quantified the number of followers, ‘likes’, ‘comments’ and video views associated with each account in April 2020. We used content analysis to examine differences in the marketing techniques.ResultsThe 15 accounts collectively maintained 10 million followers and generated 3.9 million ‘likes’, 164 816 comments and 38.2 million video views. We identified 849 posts. The three lower-middle-income countries had more posts (n=324; M, SD=108.0, 38.2 posts) than the five upper-middle-income countries (n=227; M, SD=45.4, 37.5 posts) and seven high-income countries (n=298; M, SD=42.6, 28.2 posts). Approximately 12% of the posts in high-income countries included child-targeted themes compared with 22% in lower-middle-income countries. Fourteen per cent of the posts in high-income countries included price promotions and free giveaways compared with 40% in lower-middle-income countries.ConclusionsSocial media advertising has enabled McDonald’s to reach millions of consumers in lower-middle-income and upper-middle-income countries with disproportionately greater child-targeted ads and price promotions in lower-middle-income countries. Such reach is concerning because of the increased risk of diet-related illnesses, including cardiovascular disease, in these regions.


Omega ◽  
2021 ◽  
pp. 102588
Author(s):  
Pingping Chen ◽  
Huiru Chen ◽  
Ruiqing Zhao
Keyword(s):  

Author(s):  
Danhong Chen ◽  
Edward C. Jaenicke ◽  
Ji Yan ◽  
Kun Tian ◽  
Rodolfo M. Nayga

Abstract Existing studies have examined the demand elasticities for organic products only in select categories, and their results for consumers' sensitivity to price changes are inconsistent. Evidence regarding the effects of price promotions on the demand for organic foods vs non-organic foods is scarce. This study aims to (1) examine the own-price elasticities of organic foods vs non-organic counterparts both with and without a promotion in a variety of product categories, and (2) investigate how the distinctive promotion effects between organic and non-organic counterparts depend on food category features. Using purchase data for 36 food categories from the 2015 Nielsen Consumer Panel, we find differential own-price elasticities for organic and non-organic foods, regardless of whether the product is purchased with a promotion. When the products are purchased with a promotion, we find stronger price promotion effects of organic virtues than non-organic virtues and weaker price promotion effects of organic vices than conventional vices. Price promotions of organic foods are more likely to induce health-conscious consumers to switch from conventional purchases to organic purchases in virtues.


2021 ◽  
Author(s):  
David T Levy ◽  
Alex Liber ◽  
Chris Cadham ◽  
Luz Maria Sanchez ◽  
Andrew Hyland ◽  
...  

Introduction: While much of the concern with tobacco industry marketing has focused on direct media advertising, a less explored form of marketing strategy is to discount prices. Price discounting is important because it keeps the purchase price low and can undermine the impact of tax increases. Methods: We examine annual marketing expenditures from 1975 to 2019 by the largest cigarette and smokeless tobacco companies. We consider three categories: direct advertising, promotional allowances, and price discounting. In addition to considering trends in these expenditures, we examine how price discounting expenditures relate to changes in product prices and excise taxes. Results: US direct advertising expenditures for cigarettes fell from 80% of total industry marketing expenditures in 1975 to less than 3% in 2019, while falling from 39% in 1985 to 6% in 2019 for smokeless tobacco. Price-discounting expenditures for cigarettes became prominent after the Master Settlement Agreement and related tax increases in 2002. By 2019, 87% of cigarette marketing expenditures were for price discounts and 7% for promotional allowances. Smokeless marketing expenditures were similar: 72% for price promotions and 13% for promotional allowances. Price discounting increased with prices and taxes until reaching their currently high levels. Conclusions: While much attention focuses on direct advertising, other marketing practices, especially price discounting, has received less attention. Local, state and federal policies that use non-tax mechanisms to increase tobacco prices and restrict industry contracts with retailers are needed to offset/disrupt industry marketing expenditures. Further study is needed to better understand industry decisions about marketing expenditures.


2021 ◽  
pp. tobaccocontrol-2021-056667
Author(s):  
Julia Chen-Sankey ◽  
Jennifer B Unger ◽  
Edward Bernat ◽  
Jeff Niederdeppe ◽  
Maansi Bansal-Travers ◽  
...  

BackgroundTobacco price promotions may prompt tobacco trials among youth. We assessed whether receiving price promotions for any tobacco, cigarettes, e-cigarettes and cigars was associated with product use progression.MethodsThe analysis included a nationally representative sample of youth never tobacco users (aged 12–16; n=9405) from wave 4 (2016–2018) of the Population Assessment of Tobacco and Health Study. We assessed past-year receipt of price promotions and use progression (initiation, current use and ever regular use) for any tobacco, cigarettes, e-cigarettes and cigars 1 year later at wave 4.5 (2017–2018). Multivariable logistic regressions were used to examine the associations between receiving price promotions and use progression by product type, controlling for covariates.ResultsAt wave 4.5, 9.4% of youth initiated any tobacco (1.8%, 7.8% and 0.9% for cigarettes, e-cigarettes and cigars), and 5.4% received any price promotions (3.8%, 3.1% and 0.9% for cigarettes, e-cigarettes and cigars). Receiving any tobacco price promotions was associated with any tobacco initiation (adjusted OR (AOR)=1.77; 95% CI 1.30 to 2.41), current use (AOR=1.54; 95% CI 1.06 to 2.23) and ever regular use (AOR=1.76; 95% CI 1.04 to 3.10). Receiving e-cigarette price promotions was associated with e-cigarette initiation (AOR=1.78; 95% CI 1.18 to 2.26), current use (AOR=1.88; 95% CI 1.17 to 3.02) and ever regular use (AOR=2.10; 95% CI 1.02 to 4.40). The associations specific to cigarettes and cigars were only found for product initiation.DiscussionReceiving price promotions for any tobacco and e-cigarettes was respectively associated with the use progression of any tobacco and e-cigarettes. Continuous monitoring of tobacco marketing activities is needed to identify youth-appealing price promotion tactics.


Author(s):  
Stefan F. Bernritter ◽  
Paul E. Ketelaar ◽  
Francesca Sotgiu

AbstractMarketers increasingly use behavioral targeting in location-based mobile marketing (LBMM). However, highly personalized marketing messages like this may backfire by eliciting consumer reactance. We suggest that LBMM efficacy depends on its potential to minimize consumer reactance, which can be achieved by effectively combining location targeting (in-store vs. out-store), behavioral targeting (based on consumers’ product category involvement [PCI]), and the type of promotion offered (price vs. non-price promotion). Results of a field study, a virtual reality experiment, and two online experiments show that although in-store mobile ads are generally more effective in increasing sales than out-store mobile ads, this is only the case if consumers have low PCI with the advertised product category, because this decreases their reactance. To attract consumers to stores by out-store LBMM, we show that firms should offer price promotions to consumers with low PCI and non-price promotions to consumers with high PCI, because these combinations of location targeting, behavioral targeting, and type of promotion elicit the least reactance and therefore result in a higher probability to buy.


2021 ◽  
pp. 1-39
Author(s):  
Evelyn Suk Yi Looi ◽  
Kathryn Backholer ◽  
Adrian J. Cameron ◽  
Lily Grigsby-Duffy ◽  
Liliana Orellana ◽  
...  

Abstract Objective To assess the price promotions offered by major quick service restaurant (QSR) chains in Australia from an obesity prevention perspective. Design Cross-sectional audit of ten of the largest QSR chains in Australia. We collected information regarding temporary price promotions and ‘combination deals’ offered by each chain over thirteen consecutive weeks in 2019/2020. We assessed the type of promotions, magnitude of discount, and the energy content and healthiness of items promoted (based on Victorian Government criteria). Setting QSR chains operating in Melbourne, Australia. Results Temporary price promotions (n=196) and combination deals (n=537 on regular menus, n=36 on children’s menus) were observed across the ten selected QSRs. In relation to temporary price promotions, the mean magnitude of discount for main menu items (n=75) was 41.7%. The price reductions and energy content of combination deals varied substantially by chain, meal size and the sides/drinks selected as part of the ‘deal’. When the lowest-energy options (e.g., small chips, small sugar-free drink) were included as part of each combination deal, the mean energy content was 2935kJ, compared to 5764kJ when the highest-energy options (e.g., large fries, large sugar-sweetened drink) were included. Almost all available products were classified as unhealthy. Conclusion Price promotions are ubiquitous in major QSR chains in Australia and provide incentives to consume high levels of energy. Action to restrict price promotions on unhealthy foods and ensure lower-energy default items as part of combination deals should be included as part of efforts to improve population diets and address obesity in Australia.


Author(s):  
Karl Akbari ◽  
Udo Wagner

AbstractGambled price promotions, i.e., discounts in which the customers’ savings depend on the outcome of a game, have recently gained increasing attention from research and practice. This type of promotion is often framed as an in-store event, and consumers experience two properties inherent in gambling: entertainment and varied financial payoffs. Depending on the consumers’ assessments of these two elements, these experiences might drive two postpurchase consequences of such campaigns: customer satisfaction with the retailer and word-of-mouth intention. To assess these effects, two field quasi-experiments with gambled price promotions were conducted: one in a candy store and the other in a retail furniture store. Two main findings emerge from these studies: (1) The customers in both studies endorse gambled price promotions and are more willing to engage in word-of-mouth when participating in such a campaign. The effect of gambled price promotions on customer satisfaction is positive in the low-stakes setting of the candy store but insignificant in the furniture store. (2) The positive effects of such promotions are mediated by their entertainment value and moderated by the consumers’ assessments of the discount. The implication of these results is that, in addition to the already known revenue-increasing prepurchase effects, gambled price promotions can also result in positive postpurchase effects and should represent a valuable addition to the seller’s promotion toolbox.


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