Analysis of Sales Promotion Effects on Household Purchase Behavior

ehavior from the favorite brand to another brand during non-promotional shopping trips).
This allows us to distinguish between intrinsic and extrinsic variety seeking behavior (van
Trijp et al. 1996), where the extrinsic motivations are sales promotions.
( 2)
Non - promotional
Brand Switching
BSnp
=
:
number <strong>of</strong> nonpromotional
shopping tripsonwhich
nonfavoritebrands
are purchased
number <strong>of</strong> nonpromotional
shopping trips
( 3)
<strong>Promotion</strong>al
Brand Switching :
BS p =
number <strong>of</strong> promotional
shopping trips on which nonfavorite
brands are on promotion and purchased
number <strong>of</strong> promotional
shopping trips onwhich
nonfavorite
brands are on promotion
The difference between the promotional and the non-promotional brand switch index
provides a measure <strong>of</strong> the change in brand switch purchase behavior due to promotional
availability for one or more <strong>of</strong> the non-favorite brands. The brand switch effect is therefore
operationalized as follows:
( 4)
BrandSwitching
effect : BS = BS p − BSnp
.
Note that − 1 ≤ BS ≤ 1.
A large positive difference means that a household is more inclined
to switch from its favorite to a promoted brand. The brand switching effect is expected to
be ≥ 0.
5.4.2.3 Purchase Acceleration
Purchase acceleration can take place by means <strong>of</strong> two mechanisms, by changing purchase
time or by changing purchase quantity. Both mechanisms will be studied from an
intertemporal point <strong>of</strong> view. So not only the promotional shopping trip itself, but also the
pre- and post-promotional shopping trips will be considered.
.
.
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