Identifying the underlying structure of demand during promotions: A structural equation modelling approach

► We develop a demand-factor model to explore the structure of demand during promotions. ► Through structural equation modelling we uncover the causal relationships between different factors and sales volume. ► We test the model using data of a leading soft drink manufacturer in the UK. ► Promotional features and seasonality appear to have a strong impact on sales, unlike special days. ► Our approach is flexible and helps in the planning and execution of promotional deals.