Analysis of Sales Promotion Effects on Household Purchase Behavior

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Table 7.12: Relationship promotion response and employment situation (distinguishing between in-store and out-<strong>of</strong>-store promotions) EMPLOYMENT SITUATION H7a: Retired households or households living on welfare are more promotion responsive, especially for out-<strong>of</strong>-store promotions. H8a: Households where the shopping responsible person has a paid job are less out-<strong>of</strong>store promotion responsive, but not less in-store promotion responsive. In-store promotions Out-<strong>of</strong>-store promotions B S.E. Sign. Exp(B) B S.E. Sign. Exp(B) - paid job 0.5471 0.0877 0.0000 1.7283 0.4627 0.1657 0.0052 1.5884 - retired, welfare 0.3773 0.1004 0.0002 1.4584 -0.0088 0.1977 0.9647 0.9913 - school -0.7166 0.1625 0.0000 0.4884 -0.5367 0.3047 0.0782 0.5847 - housewife househusband -0.2078 0.1138 0.0679 0.8123 0.0827 0.2051 0.6869 1.0862 Test results: Retired households/households living on welfare are not more out-<strong>of</strong>-store promotion responsive. When the shopping responsible person has a paid job out <strong>of</strong> the house, both in-store and out-<strong>of</strong>-store promotions are used more. These results do seem to indicate that retired households, or households living on welfare are above average promotion responsive for in-store promotions, but not for out-<strong>of</strong>-store promotions. We remark that the biggest group <strong>of</strong> households are retired (from the 25 households there are only 3 <strong>of</strong> them living on welfare). Households in which the shopping responsible person has a paid job are the most promotion responsive, both with regard to in-store and out-<strong>of</strong>-store promotions. Additional analyses (results not shown) in which the paid job category served as the reference category pointed out that households living on welfare do not use in-store promotions significantly less, but they do use out-<strong>of</strong>-store promotions significantly less than the households with a paid job for the shopping responsible person. These findings are completely opposite to our expectation and to what prior research concluded or argued. Based on the time-constraint and the income constraint, we expected to find that the 139
households living on welfare would (relatively) be especially responsive towards out-<strong>of</strong>store promotions. But, this counterintuitive finding can be caused by a decrease in the number <strong>of</strong> observations when distinguishing between in-store and out-<strong>of</strong>-store promotions, especially with respect to the outcome <strong>of</strong> the out-<strong>of</strong>-store related promotion response. An additional interesting finding is that school going shopping responsible persons (students) turn out to be non-responsive to sales promotions. In general, students have a limited budget and are not really time-pressed. Based on economic theory, one would expect them to be promotion responsive. But as Table 7.11 and Table 7.12 show, students have the lowest estimated coefficient for promotion response. Perhaps students expect to earn relatively a lot in a few years, and they therefore are not really focused on saving money. The second variable associated with employment situation incorporated in this research is the job sector <strong>of</strong> the breadwinner. No hypotheses were derived about the relationship between this variable and promotion response, as we believe that the employment situation <strong>of</strong> the shopping responsible person is a more important driver <strong>of</strong> promotion response. The results show that a household in which the breadwinner has a relatively ‘high’ job, that promotion response is lower, especially due to lower response for in-store promotions. The rest <strong>of</strong> the findings are non-significant for this variable. 7.5.2.7 Presence <strong>of</strong> Non-school Age Children The presence <strong>of</strong> young, non-school age children in the household is a possible time constraining factor. The negative influence <strong>of</strong> children in the household on promotion response is expected to be especially present when dealing with out-<strong>of</strong>-store promotions. Table 7.13 contains the resulting logistic regression coefficients for all promotion types. Table 7.14 contains the results distinguishing between in-store and out-<strong>of</strong>-store promotions (Table A7.4). 140
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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
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less likely to seek variety. More e
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3.3.1 Store Loyalty Store loyalty s
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more often (probab
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Table 3.12 continued Hypothesis H9a
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4.2.1 Brand Switching Brand switchi
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involvement purchases for most cons
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Neslin (1998), there is a great nee
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are called “attributions.” Attr
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and less than 2 percent by stockpil
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into a unit sales decomposition and
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4.3.4 Storability/Perishability Sto
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Economic theory ignores mental deci
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seeking (cf. Assael 1987, Desphande
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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 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 152 and 153: Table 7.13: 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
Page 173 and 174: and unweighted. With respect to the
Page 175 and 176: 164 In general, the average quantit
Page 177 and 178: Purchase frequency is defined as th
Page 179 and 180: Table 8.3: Product category rating
Page 181 and 182: Table 8.4: Pearson correlation betw
Page 183 and 184: We hypothesized that within impulse
Page 185 and 186: measure (PU). Referring to Figure A
Page 187 and 188: Table 8.6: Significant within categ
Page 189 and 190: looked at this promotional bump dec
Page 191 and 192: Table 8.8: Differences in promotion
Page 193 and 194: approach (about one third) are much
Page 195 and 196: promotions lead to large purchase t
Page 197 and 198: studies. Promotion
Page 199 and 200: 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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