In the fight against obesity, governments have pursued various policies to increase soda prices in the hope of discouraging consumption. Previous studies examining the efficacy of taxing sodas have generalized sales taxes to other taxes and assumed that imposing a tax is as salient as imposing a direct price hike. In this research, the authors recognize that most consumers do not pay much attention to how taxes differ in application. Thus, the authors disassociate the effects of sales taxes from the effects of direct price increases on soda demand, estimate pass-through rates of excise taxes in the soda market, and compare the efficacy of the two types of tax at three tax levels. They find that, for all three tax levels, imposing an excise tax on sodas drives much steeper declines in overall demand than a sales tax does. The findings suggest that failing to distinguish between tax types leads to a biased estimation of the effect of taxes on soda consumption. This research provides important implications to help policy makers adopt the most applicable tax instrument to battle obesity.

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Purpose This study aims to examine how the effect of pop-ups on an omnichannel brand’s subsequent online sales is moderated by the brand’s online price and premium promotions, paid search and popularity signaling. Design/methodology/approach Using a difference-in-differences approach, this study appraises variations in two similar Chinese apparel brands’ online sales before and after one of the brands’ implementations of its pop-ups and how the brand’s online promotions modify the pop-ups’ effect. Findings Unique, interactive pop-ups boost brands’ subsequent online sales. Online price promotions negatively moderate the effect; online premium promotions and paid search positively moderate it. Moreover, the product’s popularity diminishes the extent to which a pop-up stimulates online demand. These findings can be partially generalized to other categories, such as utilitarian products. Practical implications Only certain online strategies enhance the effect of pop-ups on brands’ online sales, so practitioners should strategically select appropriate promotion combinations when they operate pop-ups and allocate resources across channels. In addition, the moderating influence of online promotions on pop-ups depends on the type of product being promoted. Originality/value Pop-ups offer proven abilities to deliver sensory experiences to online shoppers, reinforce brand awareness and loyalty and boost online sales. This study extends prior research by examining how various online promotions moderate pop-ups’ effects.

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