Abstract
Pricing under inflation proves to affect marketing effectiveness. We analyze the weekly price evolution of yogurt segments offered in supermarkets in Argentina for the period 2015–2020. By taking into account the strong macroeconomic instability of the period, we try to figure out what role marketing variables such as product attributes and promotions have played in pricing. We find that specific attributes such as flavor and texture and time effects significant. As expected, much of the pricing was affected by general and sectorial inflation of the period.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Data storage
Data is publicly available at https://doi.org/10.13140/rg.2.2.17658.93124.
References
Aryana, K.J., and D.W. Olson. 2017. A 100-year review: Yogurt and other cultured dairy products. Journal of Dairy Science 100: 998–10013. https://doi.org/10.3168/jds.2017-12981.
Beets, M.W., F. Tilley, R.G. Weaver, G.M. Turner-McGrievy, and J.B. Moore. 2014. Increasing fruit, vegetable and water consumption in summer day camps—3-year findings of the healthy lunchbox challenge. Health Education Research 29 (5): 812–821. https://doi.org/10.1093/her/cyu026.
Berka, M., M.B. Devereux, and T. Rudolph. 2011. Price setting in a leading Swiss online supermarket, Working Paper 17126, NBER. http://www.nber.org/papers/w17126.
Besanko, D., S. Gupta, and D. Jain. 1998. Logit demand estimation under competitive pricing behavior: An equilibrium framework. Management Science 44 (11-part-1): 1533–1547. https://doi.org/10.1287/mnsc.44.11.1533Gra.
Bonanno, A. 2013. Functional foods as differentiated products: The Italian yogurt market. European Review of Agricultural Economics 40 (1): 45–71. https://doi.org/10.1093/erae/jbr066.
Bonnet, C., and Z. Bouamra‐Mechemache. 2019. Yogurt Cartel of private label providers in France: Impact on prices and welfare, Working Paper 1012, Toulouse School of Economics.
Bonnet, C., P. Dubois, S.B. Villas Boas, and D. Klapper. 2013. Empirical evidence on the role of nonlinear wholesale pricing and vertical restraints on cost pass-through. The Review of Economics and Statistics 95 (2): 500–515.
Cachanosky, N., and F.J. Ferrelli Mazza. 2021. Why did inflation targeting fail in Argentina? The Quantitative Review of Economics and Finance 80: 102–116. https://doi.org/10.1016/j.qref.2021.01.014.
Chintagunta, P.K., V. Kadiyali, and Naufel J. Vilcassim. 2006. Endogeneity and simultaneity in competitive pricing and advertising: A logit demand analysis. The Journal of Business 79 (6): 2761–2787.
Chintagunta, P., E. Kyriazidou, and J. Perktold. 2001. Panel data analysis of household brand choices. Journal of Econometrics 103: 111–153. https://doi.org/10.1016/SO304-4076(01)00041-0.
Chintagunta, P.K., and V.R. Rao. 1996. Pricing strategies in a dynamic duopoly: A differential game model. Management Science 42 (11): 1501–1514. https://doi.org/10.1287/mnsc.42.11.1501.
Chintagunta, P.K., and Naufel J. Vilcassim. 1998. Empirical implications of unobserved household heterogeneity for manufacturer and retailer pricing. Journal of Retailing and Consumer Services 5 (I): 15–24. https://doi.org/10.1016/SO969-6989(96)00061-6.
Di Giacomo, M. 2008. GMM estimation of a structural demand model for yogurt and the effects of the introduction of new brands. Empirical Economics 34: 537–565. https://doi.org/10.1007/s00181-007-0135-4.
Doyle, P. 1976. Marketing control and pricing in inflation. In Marketing in adversity: 56-72, ed. M.J. Baker. New York: MacMillan Publishers Limited.
Gicheva, D., J. Hastings, and S. Villas-Boas. 2010. Investigating income effects in scanner data: Do gasoline prices affect grocery purchases? American Economic Review 100 (2): 480–484.
INDEC. 2020. Methodology for the consumer price index (CPI). Base December 2016 = 100. Ciudad Autónoma de Buenos Aires: Instituto Nacional de Estadística y Censos - INDEC.
Jain, D.C., N.J. Vilcassim, and P.K. Chintagunta. 1994. A random-coefficients logit brand choice model applied to panel data. Journal of Business & Economic Statistics 12 (3): 317–328. https://doi.org/10.1080/07350015.1994.10524547.
Lanata Briones, C.T., and C. Daniel. 2020. Inflation in Argentina: A controversial figure. Significance 17 (4): 30–35. https://doi.org/10.1111/1740-9713.01423.
Liebermann, Y. 1985. Marketing consequences of inflationary pricing. Journal of Consumer Marketing 2 (1): 48–55. https://doi.org/10.1108/eb038820.
Makino, S., J. Hemmi, H. Kano, M. Kashiwagi, K. Hojo, and Y. Asami. 2018. Anti-fatigue effects of yogurt fermented with Lactobacillus delbrueckii subsp. bulgaricus OLL1073R-1 in healthy people suffering from summer heat fatigue: A randomized, double-blind, placebo-controlled trial. Nutrients 10 (7): 798. https://doi.org/10.3390/nu10070798.
Pavlidis, P., and P.B. Ellickson. 2017. Implications of parent brand inertia for multiproduct pricing. Quantitative Marketing Economics 15: 369–407. https://doi.org/10.1007/s11129-017-9187-8.
Pesendorfer, M. 2002. Retail sales: A study of pricing behavior in supermarkets. The Journal of Business 75 (1): 33–66.
Petrecolla, D. 2016. Estudio sobre las condiciones de competencia en el sector lechero de la República Argentina, Report for the Ministery of Agriculture of Argentina [In Spanish].
Sivakumar, K., and S.P. Raj. 1997. Quality tier competition: How price change influences brand choice and category choice. Journal of Marketing 61: 71–84.
Sosa-Escudero, W., and A.K. Bera. 2008. Tests for unbalanced error-components models under local misspecification. The Stata Journal 8 (1): 68–78. https://doi.org/10.1177/1536867X0800800105.
Sun, B. 2005. Promotion effect on endogenous consumption. Marketing Science 24 (3): 430–443. https://doi.org/10.1287/mksc.1040.0110.
Uriarte, J.I., Ramírez Muñoz, G.R. de Toro, and J.M.C. Larrosa. 2019. Web scraping based online consumer price index: The IPC Online case. Journal of Economic and Social Measurement 44 (2–3): 141–159. https://doi.org/10.3233/JEM-190464.
Vilcassim, N.J., and P.K. Chintagunta. 1995. Investigating retailer product category pricing from household scanner panel data. Journal of Retailing 71 (2): 103–128. https://doi.org/10.1016/0022-4359(95)90003-9.
Villas-Boas, S. 2007. Vertical relationships between manufacturers and retailers: Inference with limited data. Review of Economic Studies 74: 625–652. https://doi.org/10.1111/j.1467-937X.2007.00433.x.
Webster Jr., F.E., J.A. Largay III, and C.P. Stickney. 1980. The impact of inflation accounting on marketing decisions. Journal of Marketing 44 (4): 9–17. https://doi.org/10.2307/1251224.
Acknowledgements
This contribution was funded by the Proyecto Grupo de Investigación (PGI) 24/E159 granted by the Universidad Nacional del Sur (Argentina).
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Larrosa, J.M.C., Giordano, V., Ramírez Muñoz de Toro, G.R. et al. Marketing attributes in yogurt weekly pricing in Argentina. J Revenue Pricing Manag 21, 332–343 (2022). https://doi.org/10.1057/s41272-021-00335-w
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/s41272-021-00335-w