Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.

 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference
 EMAC 2021 Regional Conference
 EMAC 2022 Annual
 EMAC 2022 Regional Conference
 EMAC 2023 Annual
 EMAC 2023 Regional Conference

EMAC 2022 Annual

When Do Discounts Matter? An Investigation of Potential Drivers of Discounts Elasticities Across Brands, Categories and Store Formats

Published: May 24, 2022


Tanetpong Choungprayoon, Stockholm School of Economics


Most quantitative research papers model the effect of price promotions as the effect of changes in the final retail price while consumer behavior research suggests the potential framing phenomena in which customers can evaluate retail price and discounts differently. By taking this behavioral assumption in the sales-response model, we can estimate the discounts’ elasticities apart from price elasticities and investigate its systematic drivers from brand factors, category factors and store formats using second-stage regression. Using detailed scanner data from a membership database of an established grocery retailer across 28 categories and three formats, we found that discounts are most effective in a hypermarket format followed by a supermarket and a convenience store. The elasticities are more responsive to categories with higher dependency on discounts and fewer unique items promoted. While the average size of discounts in the category is insignificant, the brand’s size of discounts is positively influential to the discounts elasticity. Yet, offering discounts too often can decrease its discounts’ elasticities as well.