Fabindia, India’s iconic garments and home furnishings company, had come a long way from its humble beginnings as an export shop in 1960, selling handloom fabrics to overseas customers. In 1976, it had started domestic operations in India and over the next 38 years had become synonymous with quality handmade products procured from artisans all over India, with a social conscience.

One of the key problems in marketing decision making is how to measure the effectiveness of marketing actions, for example, the effect of temporary price promotions on sales. Many outcomes of marketing decisions are multiply determined and involve both short- and long-term effects that are hard to pin down.