Analysis of Sales Promotion Effects on Household Purchase Behavior

for the two indicators for each product category. Throughout this chapter, tabulated significant
findings are printed in bold.
Table 8.1: Average promotional utilization (across the households)
First indicator (PU)
Mean
S.E.
Second indicator (BSp)
Mean
Pasta 0.08 0.02 0.06 0.01
Candy-Bars 0.32 0.04 0.24 0.05
S<strong>of</strong>t-drinks 0.23 0.02 0.13 0.01
Fruit Juice 0.28 0.02 0.13 0.01
Potato-Chips 0.17 0.02 0.11 0.02
C<strong>of</strong>fee 0.44 0.03 0.35 0.04
Significant findings mean that the promotional utilization measures significantly differ
from zero. Table 8.1 shows that both indicators result in the same rank-order (apart from
the tie for BSp for s<strong>of</strong>t-drinks and fruit juice). <strong>Sales</strong> promotions for c<strong>of</strong>fee products are used
the most, followed by candy bars, fruit juice, s<strong>of</strong>t drinks, potato chips, and finally pasta.
These rank-orders are in accordance with those from Chapter 7.
But our interest exceeds promotion response as such. We want to obtain insights
in the specific sales promotion reaction mechanisms that occur. If a household purchases
products on promotion, are these products bought in bigger amounts, is the favorite brand
bought, are the purchases accelerated by the sales promotion? Do households compensate
during pre- or post-promotional shopping trips, etc? In general, what sales promotion
reaction mechanisms occur due to the presence <strong>of</strong> promotions? Do some mechanisms occur
more <strong>of</strong>ten than others? Does this differ across product categories? Are the findings in
coherence with prior research on this topic? These questions are empirically dealt with in
the remainder <strong>of</strong> this section. Table 8.2 contains the estimated product category average
intensities <strong>of</strong> each <strong>of</strong> the reaction mechanisms specific measures. The first two columns <strong>of</strong>
estimates contain across category averages for the six sales promotion reaction mechanism
measures, weighted (categories which are bought by more households get a bigger weight)
S.E.
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