TRANSFOP researchers present on-going research at a specially organised session at the AAEA in Washington, in early August (2013).

Presentation on Price Promotion and Brand Loyalty, Toulouse, May 2011

TRANSFOP researchers Jens-Peter Loy (University of Kiel, Germany) and Christoph Weiss (Vienna University of Economics and Business, Austria) presented their joint work with Janine Empen (University of Kiel, Germany) on price promotion and brand loyalty at the INRA-IDEI seminar on “Competition and Strategies in the Retailing Sector” in Toulouse (May, 2011). The focus on the paper (“Empirical Evidence for the German Ready-to-Eat Cereal Market”) was on whether price promotions promote brand loyalty. With theoretical literature on this issue providing mixed predictions, and with empirical work (particularly in a European context being scarce), there is considerable scope for further research on this issue. Using detailed data for the German ready-to-eat breakfast cereal market, their research shows that stronger brands tend to be promoted less frequently and with lower discounts compared to weaker brands. They suggest that price reductions are more costly for brands with loyal customers who are willing to accept higher mark-ups.

Back to News and blogs