Analysis of Sales Promotion Effects on Household Purchase Behavior

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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. . . 95
96 We measure possible time acceleration effects by comparing the interpurchase time between a non-promotional or not utilized promotional and a subsequent utilized promotional shopping trip, with the average time interval between two subsequent nonpromotional or not utilized promotional shopping trips. We measure possible time readjustment effects by comparing the interpurchase time between a utilized promotional and a subsequent non-promotional or not utilized promotional shopping trip, with the average time interval between two subsequent non-promotional or not utilized promotional shopping trips. The intertemporal purchase quantity effects are measured by comparing the average purchase volume per non-promotional or not utilized promotional shopping trip with (a) the non-promotional purchased volume one shopping trip before the utilized promotional shopping trip, (b) the purchased volume during the utilized promotional shopping trip, and (c) the non-promotional purchased volume one shopping trip after the utilized promotional shopping trip. This provides insights in whether the household purchased more due to promotion, or merely shifted purchases forward or backward that would have occurred anyway. Opposite to the brand switch effect measure, the three purchase time measures and the four purchase quantity measures are ratio’s, the average non-promotional time interval or purchase quantity serving as the denominator for normalization purposes. 5.4.2.3.1 Inter Purchase Time Let IPT denote the average Inter Purchase Time, that is the average length <strong>of</strong> the timeinterval between two successive non-promotional or non-utilized promotional shopping trips. Let IPT − denote the average length <strong>of</strong> the time-interval between a non-promotional or non-utilized promotional and a subsequent utilized promotional shopping trip. Let IPT+ denote the average length <strong>of</strong> the time-interval between a utilized promotional shopping trip and the subsequent non-promotional or non-utilized promotional shopping trip. We expect that households purchase sooner due to a promotion, and therefore that
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LINDA H. TEUNTER Analysis</
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Analysis o
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Voorwoord Soms valt de appel echt n
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Contents 1 INTRODUCTION AND OVERVIE
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5.4.2.3.1 Inter Purchase Time .....
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1 INTRODUCTION AND OVERVIEW 1.1 Int
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generally generated from a smaller
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switching, purchase acceleration, c
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strategy change (decrease in promot
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of promotions, or
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characteristics are important in ex
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Chapter 5 are applied to study the
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2 THEORIES OF CONSUMER BUYING BEHAV
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systematically explored the decisio
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the part of the co
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As mentioned before, Figure 2.3 is
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product use coupled with the import
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2.3.2 Stimulus-Response Model Appli
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2.3.2.2 Operant Conditioning In ope
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X is very popular that it will brin
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But, in contrast, economic theory c
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compared to a perceived benchmark -
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High need-for-cognition (NFC) indiv
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2.3.4.2 Literature Overview Our rev
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The previously described research h
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has its deficiencies. Any purchase
Page 56 and 57: Chandon et al. 2000). But deal pron
Page 58 and 59: 2.4 Concluding Remarks Regarding th
Page 60: stimulus-organism-response model) c
Page 63 and 64: Shoemaker 1987). Several factors ha
Page 65 and 66: such as display promotions. Althoug
Page 67 and 68: 3.2.3 Type of resi
Page 69 and 70: 3.2.5 Education Education links to
Page 71 and 72: these advantages therefore could be
Page 73 and 74: less likely to seek variety. More e
Page 75 and 76: 3.3.1 Store Loyalty Store loyalty s
Page 77 and 78: more often (probab
Page 79 and 80: Table 3.12 continued Hypothesis H9a
Page 81 and 82: 4.2.1 Brand Switching Brand switchi
Page 83 and 84: involvement purchases for most cons
Page 85 and 86: Neslin (1998), there is a great nee
Page 87 and 88: are called “attributions.” Attr
Page 89 and 90: and less than 2 percent by stockpil
Page 91 and 92: into a unit sales decomposition and
Page 93 and 94: 4.3.4 Storability/Perishability Sto
Page 95 and 96: Economic theory ignores mental deci
Page 97 and 98: seeking (cf. Assael 1987, Desphande
Page 99 and 100: there another factor that is relate
Page 101 and 102: Pr(event) 90 = 1+ 1 z e − Here Z
Page 103 and 104: 5.4.2 Sales <stron
Page 105: It represents the fraction
Page 109 and 110: promotional post-promotional purcha
Page 111 and 112: ( 12) CategoryExpansion effect : 10
Page 114: PART II EMPIRICAL ANALYSIS 103
Page 117 and 118: more persons living together and di
Page 119 and 120: 6.4 Linking Household and Store Dat
Page 121 and 122: Table 6.1 contains the results <str
Page 123 and 124: The age of the sho
Page 125 and 126: Table 6.4: Frequency distribution <
Page 128 and 129: 7 EMPIRICAL ANALYSIS ONE: DRIVERS O
Page 130 and 131: Table 7.1: Operationalization <stro
Page 132 and 133: during 435 shopping trips more than
Page 134 and 135: The variables size, age, and cycle
Page 136 and 137: 7.5 Results Drivers of</str
Page 138 and 139: esponsive the households within tha
Page 140 and 141: Table 7.3: Relationship promotion r
Page 142 and 143: indication that decreasing marginal
Page 148 and 149: Table 7.10: Relationship promotion
Page 154 and 155: 7.5.2.8 Variety Seeking Two intrins
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anymore. Therefore it is concluded
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Thus, store loyalty and promotion r
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dummies add up to one. This implies
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Table 7.22: Overview empirical test
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enacting-on-impulse hypothesis and
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Table 7.23: Summary of</str
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Table 7.24: Correlation error coeff
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another category? Or do households
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and unweighted. With respect to the
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164 In general, the average quantit
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Purchase frequency is defined as th
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Table 8.3: Product category rating
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Table 8.4: Pearson correlation betw
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We hypothesized that within impulse
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measure (PU). Referring to Figure A
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Table 8.6: Significant within categ
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looked at this promotional bump dec
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Table 8.8: Differences in promotion
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approach (about one third) are much
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promotions lead to large purchase t
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studies. Promotion
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Promotional extra
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categories revealed that the strong
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degree. When households switch bran
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specific sales promotion reaction m
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increasing (Inman and Winer 1998),
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indirectly from promotional purchas
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quantity downward for potato chips.
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9.2.2.3 Deal Proneness With respect
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204 related to promotion response.
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influenced by out-of</stron
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Andrews, K.Z. (1997), “Do Marketi
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Blattberg, R.C., Eppen, G.D. and J.
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Chintagunta, P. (1993), “Investig
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East, R. and K. Hammond (1996), “
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Gupta, Sachin and P.K. Chintagunta
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Kahn, B.E., Morrison, D.G.and G.P.
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Lattin, J.M. and R.E. Bucklin (1989
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McAlister, L. and E. Pessemier (198
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Petty, R.E. and J.T. Cacioppo (1981
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Shimp, T.A. (1990). Promoti
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Van Trijp, H.C.M. and J.B.E.M. Stee
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Winer, R.S., Bucklin, R.E., Deighto
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APPENDIX A4: Research Overview Tabl
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Table A4.1 continued Article Promot
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� Size of munici
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Table A7.1 continued Symbol Descrip
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Table A7.2: Data legitimacy check (
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Table A7.3: Results binary logistic
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Table A7.4: Results interacting wit
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Table A7.5: Results age and size no
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Table A7.5 continued Variable B S.E
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Table A8.1 continued Impulse BS TA
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Table A8.2 continued Number <strong
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Table A8.3: Relative occurrence and
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Figure A8.2: Decomposing total prom
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interessante aanbieding is. Combina
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aantalmerken in een categorie en im
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ERASMUS RESEARCH INSTITUTE OF MANAG
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Title: Beyond Generics;A closer loo
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Title: Planning and Control Concept
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