“Our method takes care that all sales promotion effects are measured using the same scale, unit sales.”

This is because it completely reverses the interpretation of previous findings on a topic that is at the very core of marketing research. That is, we study the impact of sales promotions (temporary price cuts) on brand sales. Previously it was believed that the induced sales increase (which can be as large as 500%) comes primarily from other brands, but we show that this is not the case.

Certainly. Our method takes care that all sales promotion effects are measured using the same scale, unit sales. Previous research was expressing the effects in elasticities, which has led to the misinterpretation of the amount of brand switching at sales promotions.

It means that sales promotions are much less a competitive threat than what was believed so far. Instead, sales promotions expand the product category sales temporarily.