Twenty-five high school students from Arkansas recently spent one week on campus to learn about entrepreneurship, business plans, presentations, teamwork and community improvement projects through the Fleischer Scholars summer camp program. Continue reading Fleischer Scholars Present Business Plans for Entrepreneurial Projects
It’s here, in a series of store-level studies
(Release from the Journal of Retailing)
Deep discounting by retailers, accompanied by a blitz of promotions, is a long-established and well-accepted strategy for boosting brand and category sales. But relatively few studies have analyzed store-level data in an effort to compile systematic empirical evidence on the impact of deep discounting on such store performance metrics as traffic, sales, and profits. New research delves into the numbers to find out if the received wisdom is justified.
In “An Empirical Analysis of the Impact of Promotional Discounts on Store Performance,” Dinesh K. Gauri, a Walton College marketing professor, and co-authors Brian Ratchford, Joseph Pancras, and Debabrata Talukdar gathered data from 24 branches of a grocery chain in the Northeastern US over 49 weeks. Their analysis of several different metrics, to be published in the September 2017 issue of the Journal of Retailing, showed that that deep discounting is a valid strategy supported by the numbers, with the caveat that broad discounting in a category may lead to diminishing returns.
For each week in each of the two dozen stores, the authors compiled data on overall traffic, sales per transaction, and margin, for a total of 13,815 transactions, with a mean value of $15.44 and margin of 23.6 percent. They looked at the impact of loss leader strategies, including promotional expenditures, on penetration and frequency, impulse buying, stockpiling, and store brands. Besides confirming the legitimacy of the strategy in general, they unearthed insights that could help shape retailing strategy.
Among the findings that can give retailers an edge: the data showed that discounts on high-penetration, high-frequency items – staples such as meat and produce – and low-penetration, low-frequency items – fill-ins, like beer and spreads – led to increased traffic but lower sales per transaction, suggesting that these features tend to attract small-ticket customers. However, discounts in these categories were associated with higher margins, especially with the low-penetration, low-frequency category, suggesting that the smaller transactions generated by the discounts tend to contain an above-average number of high-margin items in addition to the discounted items – a result driven mainly by beer, which was featured almost every week.
Kathryn Baker Parks, director of Data and Academic Systems, has been named Employee of the Fourth Quarter and Employee of the Year by the Sam M. Walton College of Business. Continue reading Baker Parks Named Employee of the Year by Walton College
Undergraduate business majors are encouraged to apply for membership in Leadership Walton, a professional development program offering a unique blend of academic, leadership and career development opportunities. Continue reading Leadership Walton Application Deadline Is July 31
Students from the U of A attended the 2017 Enactus National Competition in Kansas City to network, brainstorm project ideas and create partnerships with students from other colleges and universities. Continue reading Students Attend 2017 Enactus National Competition
The Override Request System for full Summer 2017 business classes is closed. The override system for full Fall 2017 business classes will open on Monday, July 31st @ 8am. Please check back here for the link to the online request form. Questions? Contact the Undergraduate Programs Office at 479-575-4622 or stop by Business Building, room 328.
Twenty-eight high school students from underrepresented groups attended the 18th Technology Awareness Program, a weeklong residential camp that brought to life the many opportunities in technology. Continue reading Technology Opportunities Brought to Life for High School Students
The Office of Diversity and Inclusion at the Sam M. Walton College of Business hosted 26 incoming freshman students from Arkansas, Texas, Florida, Missouri and Kansas during the Business Leadership Academy camp held June 4-8. Continue reading Camp Introduces Business Degrees and Careers to Incoming Freshmen
Andrew P. Brownback, a Walton College assistant professor in economics, has won a $198,940 grant from the Robert Wood Johnson Foundation for a study on ways to encourage people to make healthy food choices while not giving up choice. Continue reading Brownback Receives Robert Wood Johnson Foundation Grant for Consumer Research
Northwest Arkansas is an ideal location to do research in marketing and consumer behavior. If Dinesh Gauri didn’t know it 10 years ago, he knows it now. Continue reading EPIC Spotlight: Dinesh Gauri