Analysis of Sales Promotion Effects on Household Purchase Behavior

Household panel
Households with
primary store
(N=4060) (N=1770)
Retail panel
h
h
h
h
h h
h h h
h
h
h h
Primary
store
h
h
h
h
Figure 6.1: Pictorial representation <strong>of</strong> household selection process (h represents a
household, r represents a retail outlet)
This primary store assignment process is at the expense <strong>of</strong> smaller, local, or specialty
shops. They have a smaller probability to be included in this study, because <strong>of</strong> smaller
assortments, less products, less choice, etc. Households will hardly ever spent 50% or more
<strong>of</strong> their grocery expenses in these types <strong>of</strong> shops. The remaining households and their
outlets are all members <strong>of</strong> the five biggest retail chains in The Netherlands, which
constitute 53.7% <strong>of</strong> the total market share. Before using the resulting 200 household, the
representativeness <strong>of</strong> this set <strong>of</strong> households compared to the GfK household ConsumerScan
panel has to be determined, to ensure generalizability <strong>of</strong> the findings <strong>of</strong> this study. The next
section contains some statistical tests that assess differences and/or similarities between the
entire household panel and the set <strong>of</strong> households that will be used to assess the effects <strong>of</strong>
sales promotions on household purchase behavior in the remainder <strong>of</strong> this dissertation.
6.5 Representativeness Household <strong>Analysis</strong> Set
h
The first 13 weeks <strong>of</strong> data are used to investigate whether the 200 households from the
household analysis set provide a good representation <strong>of</strong> the entire household panel on a
number <strong>of</strong> household and purchase process characteristics, such as social class, household
size, age <strong>of</strong> the housewife, household cycle, purchase frequency, and grocery expenditures
(as these variables were identified as possible drivers <strong>of</strong> sales promotion response, the
representativeness with respect to these variables is very important).
r
r
r
r
r
Households in
analysis set
(N=200)
h
h
109