Analysis of Sales Promotion Effects on Household Purchase Behavior

Table 8.3: Product category rating and ranking on important category characteristics
168
Average price level Purchase
Modal
unit-size
Pasta 1.47
Potato-
Chips
S<strong>of</strong>tdrinks
Fruit
Juice
Candy-
Bars
(1)
1.68
(3)
1.78
(4)
1.50
(2)
3.83
(5)
C<strong>of</strong>fee 6.71
(6)
ρ (PU) 0.83
(0.04)
Purchase
occasion
1.63
(2)
2.16
(3)
1.60
(1)
3.10
(4)
3.57
(5)
7.89
(6)
0.83
(0.04)
frequency
3.67
(2)
6.52
(5)
13.52
(6)
5.82
(3)
3.26
(1)
6.22
(4)
-0.14
(0.79)
Pomotion
frequency
5
(1)
20
(6)
10
(4)
6
(2)
13
(5)
8
(3)
0.14
(0.79)
Modal
unit-size
(in cc)
700
(3)
800
(4)
1500
(6)
1000
(5)
400
(2)
350
(1)
-0.49
(0.33)
Storability Number
Storable
Yes
(5)
No
(2)
Yes
(3)
Yes
(4)
No
(1)
Yes
(6)
0.00
(1.00)
<strong>of</strong> brands
103
(4)
64
(1)
169
(6)
153
(5)
68
(2)
83
(3)
-0.09
(0.87)
Impulse PU
Low
(1)
High
(5)
Average
(4)
Average
(3)
High
(6)
Average
(2)
0.31
(0.56)
0.08
(1)
0.17
(2)
0.23
(3)
0.28
(4)
0.32
(5)
0.44
(6)
It appears from Table 8.3 that average price level seems to be most consistent with
promotional utilization, which is confirmed by the Spearman (rank) correlation coefficient.
But, as mentioned before, these correlation coefficients are based on only 6 observations.
We expect to find additional insights when we look at the consistency between
these product category characteristics and the specific sales promotion reaction
mechanisms. For example, for higher priced categories we expect that promotions lead to
more purchase acceleration effects than for lower priced categories. Tables A8.1 and A8.2
contain the same category characteristics with the rankings <strong>of</strong> these characteristics and the
rankings <strong>of</strong> the different reaction mechanisms are included. The Spearman (rank)
correlation coefficients can be found in the lower part <strong>of</strong> Table A8.2. This table <strong>of</strong>fers
some tentative insights that can be used to make a qualitative statement regarding the