Ailawadi, Kusum L.; Harlam, Bari A.; César, Jacques; … - In: Marketing Science 26 (2007) 4, pp. 566-575
promotions and conducted a controlled field test to demonstrate the impact of eliminating them before chainwide implementation …. Our key findings are as follows. First, approximately 45% of the gross lift from promotions is incremental for CVS … 50% of promotions are not profitable because the lower promotional margin is not sufficiently offset by incremental units …