Higher sales and margins are key goals for retailers promoting emerging products such as, organics but little, is known. About their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting. Results about price and promotional sensitivity for organic products and does not address the impact of organic, assortment. This article calculates long-term own - and cross-elasticities of organic and conventional product sales in response to changes. In, assortment price and promotions. Using, a rich data set of, 56 categories the authors test hypotheses on how different. Costs and benefits of organic products affect these elasticities. They find that, enduring actions such as assortment and. Regular, price changes have a higher elasticity for organics than for conventional products. In contrast with, common wisdom. Even "core." organic consumers are sensitive to these actions. Increasing organic assortment and promotion breadth yields. Higher profits for the total category as do, more frequent promotions on conventional products. Our category comparison. Yields specific advice as to where larger assortment lower prices, versus more and deeper promotions are most effective.
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