Increased sales due to promotions could be at the expense of competitors: such sales come from consumers with relatively weak brand preferences. However, increased sales from brand loyal consumers could well cannibalize sales of the promoted brand. An unintended consequence of promotions is that...

We build an econometric model of a household's purchase incidence and brand choice decisions in complementary product categories to account for cross-category dependence in demand. Complementarity is modeled as the additional utility that a household derives from the joint consumption of brands...