Analysis of Sales Promotion Effects on Household Purchase Behavior

Table 7.21: Results interaction basket size and shopping frequency with promotion type
148
response
BASKET SIZE and SHOPPING FREQUENCY
In-store promotions Out-<strong>of</strong>-store promotions
B S.E. Sig Exp(B) B S.E. Sig Exp(B)
BASKETSIZE 0.0903 0.0410 0.0275 1.0945 0.1083 0.0746 0.1467 1.1143
NSHOPTRIPS
PRIMARY STORE
-0.0462 0.0080 0.0000 0.9549 -0.0464 0.0162 0.0042 0.9547
Test results: Basket size and promotion response are positively related and shopping
frequency and promotion response are negatively related to promotion response for both
in-store and out-<strong>of</strong>-store promotions (although not-significant for basket size with respect
to out-<strong>of</strong>-store promotions).
Large basket shoppers are using both in-store and out-<strong>of</strong>-store promotions to a larger
degree than small basket shoppers. Frequent shoppers make less use <strong>of</strong> both types <strong>of</strong>
promotions.
As discussed in Section 6.5, it turned out that the households in the analysis data
set shop less frequently than in the entire household panel. The promotion response found
and discussed in this research therefore could be positively biased. But, as mentioned in
Section 6.5, this difference was caused by only a very small subset <strong>of</strong> the households. The
general insights obtained from the households in the analysis data set are representative for
the entire household panel and therefore provide valid insights into the general drivers <strong>of</strong>
household’s promotional purchase behavior.
7.5.2.11 <strong>Promotion</strong> Type
As mentioned in Section 7.5.2, dummy variables are incorporated in the analyses that
represent the different types <strong>of</strong> promotions included in this research. Note that each record
contains only one promotion type dummy that equals 1, which means the promotion type