The Impact of Feature Flier Characteristics on Supermarket Fruit Demand
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This research examines how consumer purchasing responds to changes in advertised feature sizes and placements within weekly in-store fliers. The weekly-featured advertisements were measured in square inches and the different advertisement placements within the weekly flier included front, back, or within pages. A non-linear Almost Ideal Demand System was used to model the share equations for Gala apples, Fuji apples, Red Delicious apples, Granny Smith apples, other sweet apples, other tart apples, pears, bananas, oranges, and grapes. One hundred thirty-five weeks of data on weekly store sales were collected from two grocery stores in the Portland, Oregon metropolitan area. Results from the advertised feature fliers and placement measures indicate the importance of retail management in determining demand levels.