Asynergistic sales-effects of in-market advertising and price-reduction: a case study of the Ile-Ife palm-oil market
Keywords:
Sales-effect, Asynergism, Price-reduction and in-market advertising.Abstract
An extra-period Latin-square experimental design, a subset of which was a four-by-four Latin-square design, was first used to evaluate the carry-over effects of various treatments on unit sales of palm-oil in Ile-Ife market. The treatment carry-over being detected to be non-significant, the analysis of the regular Latin-square made up of four treatments in four market sites during four experimental market periods was performed.
The results indicated that point of sale promotion more than doubled the effect of price reduction on unit sales of palm-oil. With or without point-of-sale promotion, palm oil was found to be a non-giffen good. Each of the three components of the direct treatment variable price, advertising and the combination of the two were found to be significant in effect. Asynergism was found to be present when point-of-sale advertising and price specials were combined.
