ImplicationsofHi-Lopricingstrategyforthe consumergoodsindustry.

Abstract

This work analyses how intra-category promotional effects developed in the context ofa Hi-Lo pricing strategy can be different depending on category characteristics and deals features. For this reason, after reviewing the relevant literature, we have studied the evolution in sales ofthree different consumer goods categories during one year period. The empirical results have shown how temporary retail price discounts contribute to increase sales ofthe own-brand and that there are complex interactions among sales within the category. These evidences are key for the retail management ofprices and deals.