Evaluation of Promotional and Cross-Promotional Effects Using Support Vector Machine Semiparametric Regression

Present article illustrates how system engineering procedures and techniques could be applied to marketing and pricing models. In this research it is evaluated, over retail grocery products sales, the promotional and cross-promotional effects based on Support Vector Machines Semiparametric Regression (SVM-SR) technique. More specifically, in this work it is evaluated the interaction effects of combined promotional, for differentiated types of brands. Database was developed using one year scanned sales records from a Spanish hypermarket. Mayor findings were: (i) higher direct sales increment in larger package sizes promoted articles of national premium brands products not incorporating additional or functional ingredients; (ii) relevant cross price effects (both asymmetric and neighbourhood); (iii) higher sales grow on Friday and Saturday; and (iv) enhanced results in combined price discount and advertising feature promotions than any individual promotion.