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Analysis of Sales Promotion Effects on Household Purchase Behavior

Analysis of Sales Promotion Effects on Household Purchase Behavior

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Table 7.14: Relati<strong>on</strong>ship promoti<strong>on</strong> resp<strong>on</strong>se and presence <str<strong>on</strong>g>of</str<strong>on</strong>g> children in the household<br />

CYCLE<br />

142<br />

(distinguishing between in-store and out-<str<strong>on</strong>g>of</str<strong>on</strong>g>-store promoti<strong>on</strong>s)<br />

H9a: The presence <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-school age children in the household and promoti<strong>on</strong> resp<strong>on</strong>se<br />

are negatively related, especially for out-<str<strong>on</strong>g>of</str<strong>on</strong>g>-store promoti<strong>on</strong>s.<br />

In-store promoti<strong>on</strong>s Out-<str<strong>on</strong>g>of</str<strong>on</strong>g>-store promoti<strong>on</strong>s<br />

B S.E. Sign. Exp(B) B S.E. Sign. Exp(B)<br />

- single 0.2554 0.1198 0.0330 1.2910 0.5492 0.2320 0.0179 1.7318<br />

- n<strong>on</strong>-school age -0.2219<br />

child<br />

0.1043 0.0335 0.8010 -0.4402 0.1918 0.0217 0.6439<br />

- older children -0.1373 0.0874 0.1164 0.8717 -0.3335 0.1775 0.0602 0.7164<br />

- family without<br />

children<br />

0.1037 0.0679 0.1269 1.1093 0.2246 0.1244 0.0710 1.2518<br />

Test results: <strong>Household</strong>s with children, especially n<strong>on</strong>-school age children are less<br />

resp<strong>on</strong>sive towards out-<str<strong>on</strong>g>of</str<strong>on</strong>g>-store promoti<strong>on</strong>s than towards in-store promoti<strong>on</strong>s, but the instore<br />

promoti<strong>on</strong> resp<strong>on</strong>siveness is still below average.<br />

The estimated coefficients do not provide the expected empirical support regarding the<br />

different promoti<strong>on</strong> types. Both in-store and out-<str<strong>on</strong>g>of</str<strong>on</strong>g>-store promoti<strong>on</strong>s are relatively underused<br />

by households with these young children.<br />

As menti<strong>on</strong>ed before, both employment situati<strong>on</strong> and the presence <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-school<br />

age children are two variables that deal with time c<strong>on</strong>straints. But their effects are quite<br />

different, as a comparis<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the results <str<strong>on</strong>g>of</str<strong>on</strong>g> this and the previous secti<strong>on</strong> shows. Apparently,<br />

these two variables influence promoti<strong>on</strong> resp<strong>on</strong>siveness in more ways than through time<br />

c<strong>on</strong>straints al<strong>on</strong>e. Especially the combinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> available time and available budget seems<br />

to matter. Lack <str<strong>on</strong>g>of</str<strong>on</strong>g> time has a negative influence <strong>on</strong> promoti<strong>on</strong> resp<strong>on</strong>se. But, lack <str<strong>on</strong>g>of</str<strong>on</strong>g> time in<br />

combinati<strong>on</strong> with no lack <str<strong>on</strong>g>of</str<strong>on</strong>g> shopping budget seems to lead to promoti<strong>on</strong> resp<strong>on</strong>sive<br />

households. <str<strong>on</strong>g>Sales</str<strong>on</strong>g> promoti<strong>on</strong>s as decisi<strong>on</strong>-making cues could be the reas<strong>on</strong> behind this.

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