Analysis of Sales Promotion Effects on Household Purchase Behavior

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Table 6.3: Frequency distribution <strong>of</strong> household cycle Household cycle Frequency Relative Frequency Single, shopping responsible person younger than 35 9 5 % Single, shopping responsible person 35-54 14 7 % Single, shopping responsible person older than 54 22 11 % Family with youngest child 0-5 25 13 % Family with youngest child 6-12 18 9 % Family with youngest child 13-17 17 9 % Family without children, shopping responsible person younger than 35 15 8 % Family without children, shopping responsible person 35- 54 36 18 % Family without children, shopping responsible person older than 54 44 22 % High, or low income, could be a driver <strong>of</strong> sales promotion response. As discussed in Section 3.2.1, social class is an indicator <strong>of</strong> income. Therefore, it is interesting to look at the distribution <strong>of</strong> social class among the households in the analysis sample. Table 6.4 contains the (relative) frequency distribution. 113
Table 6.4: Frequency distribution <strong>of</strong> social class (see Table A3.1 for the 114 exact operationalization <strong>of</strong> social class) Social class Frequency Relative frequency High 23 12 % Above average 58 29 % Average 38 19 % Below average 70 35 % Low 11 6 % Both the high and low social classes are a part <strong>of</strong> the household analysis data set, which is important when we want to derive whether social class is an important driver <strong>of</strong> sales promotion response (as will be discussed in detail in the next chapter). Besides household demographics and socio-economic factors, purchase process characteristics also can play an important role in household sales promotion response. For example number <strong>of</strong> shopping trips and amount spent on groceries could be related with promotion response. On average, households visit a grocery store 39 times a year, ranging between 12 to 98 times (with a standard deviation <strong>of</strong> 18). The total amount <strong>of</strong> money per household spent on groceries equals, on average, about 16,000 guilders per year. These general descriptive statistics serve as the starting-point <strong>of</strong> the empirical part <strong>of</strong> this research, which is focused on studying the effects <strong>of</strong> sales promotions on household purchase behavior. Table 6.5 contains some aggregate information on promotion response. The percentage <strong>of</strong> sales purchased on promotion for the six product categories included in this study for two years (2000 and 2001) can be found in the table. The numbers represent the aggregated percentages based on the entire retail panel.
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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
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Chandon et al. 2000). But deal pron
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2.4 Concluding Remarks Regarding th
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stimulus-organism-response model) c
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Shoemaker 1987). Several factors ha
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such as display promotions. Althoug
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3.2.3 Type of resi
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3.2.5 Education Education links to
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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 and 106: It represents the fraction
Page 107 and 108: 96 We measure possible time acceler
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: The age of the sho
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
Page 156 and 157: anymore. Therefore it is concluded
Page 158 and 159: Thus, store loyalty and promotion r
Page 160 and 161: dummies add up to one. This implies
Page 162 and 163: Table 7.22: Overview empirical test
Page 164 and 165: enacting-on-impulse hypothesis and
Page 166 and 167: Table 7.23: Summary of</str
Page 168: Table 7.24: Correlation error coeff
Page 171 and 172: another category? Or do households
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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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