The impact of outdoor temperature on pricing and advertising policies for weather-sensitive products

The demand of weather-sensitive products, such as refreshing drinks, varies with outdoor temperature. But when temperatures change, retailers lack a framework to adapt marketing mix elements, such as pricing and advertising. The purpose of this article is to analyse how price and advertising of weather-sensitive products adapt to temperature. The empirical study is based on original three-year weekly panel scanner data of the Yop brand in the French drinking yoghurt market. Empirical estimates suggest that price and advertising increase with temperature. Adapting the marketing mix to temperature offers original profit-enhancing policies.