Analysis of Sales Promotion Effects on Household Purchase Behavior

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8.4 Household Consistencies The prior sections did reveal some consistencies across categories regarding promotion utilization and regarding sales promotion reaction mechanisms. One clear consistency across all categories is that brand switching is the most common reaction to sales promotions (Table 8.2). But, at the same time, it was also clear that the degree to which brand switching occurs varies across product categories. In this section, we are interested in the consistencies or inconsistencies at the individual household level. We try to answer the question whether the intertemporal effects (the sales promotion reaction mechanisms) differ across product categories at the individual household level? Households that switch brands in one category do not necessarily switch brands in another category. Some households do, other households exhibit several sales promotion effects within one and the same product category, whereas there also exist households that switch brands in one category, but purchase more in another. These types <strong>of</strong> questions are investigated in this section. In the first subsection it is investigated whether households show consistent effects across categories. The second subsection deals with the question whether households show more consistencies within a category across reaction mechanisms than within the same reaction mechanism across categories. When empirical results point out that households show more consistencies within a product category across sales promotion reaction mechanisms than within sales promotion reaction mechanisms across product categories, promotion proneness does not seem to exist. 8.4.1 Across Category Consistencies Within <strong>Sales</strong> <strong>Promotion</strong> Reaction Mechanism In Chapter 7, consistency in promotion response across product categories was studied using error correlation coefficients from binary logistic regressions (Table 7.24). Based on these error correlation coefficients, it was concluded that this dependency across categories does not exist. Table 8.5 contains the estimated correlation coefficients (as far as they are significant) between the different pairs <strong>of</strong> product categories for the different sales promotion reaction mechanisms (BS, TA, TR, TN, QB, QP, QA, QN, CE) and for the promotional utilization 173
measure (PU). Referring to Figure A8.1, the correlation coefficients are computed between for example the promotional utilization estimates (PU) for candy bars and potato chips, etc. Table 8.5: Across product categories correlations within sales promotion reaction mechanisms candy bars potato chips PU(+) BS(-) s<strong>of</strong>t drinks potato chips s<strong>of</strong>t drinks c<strong>of</strong>fee fruit juice c<strong>of</strong>fee TN(+) TR(+) fruit juice PU(+) BS(+) PU(+) pasta BS(+) BS(-) QN(-) QN(+) With respect to promotional utilization (PU), no significant negative coefficients are found (at least not at the 0.05 significance level). Only three out <strong>of</strong> the possible 15 significant positive relationships are found (between potato chips and candy bars, between potato chips and fruit juice, and between fruit juice and c<strong>of</strong>fee). Deal proneness is not observed, confirming the findings from Chapter 7. Next, it is investigated whether the across product category consistencies change when we look at the specific sales promotion reaction mechanisms that occur rather than whether or not a response occurs. Consistency at the promotion response level does not mean that households that use promotions in one category, leading to brand switching, also switch brands in a different category. As can been seen from Table 8.5, almost as many positive as negative correlations are found when looking at the sales promotion reaction mechanisms. Concluding, a consistent pattern in sales promotion reaction mechanisms across different product categories is not found. 8.4.2 Within Product Category Consistencies Across <strong>Sales</strong> <strong>Promotion</strong> 174 Reaction Mechanisms In this sub-section, we investigate whether promotion effects on households are consistent within a category across the different sales promotion reaction mechanisms. Table 8.6 contains the significant correlation coefficients. First <strong>of</strong> all, we have to mention that, in theory,
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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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there another factor that is relate
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Pr(event) 90 = 1+ 1 z e − Here Z
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5.4.2 Sales <stron
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It represents the fraction
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96 We measure possible time acceler
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promotional post-promotional purcha
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( 12) CategoryExpansion effect : 10
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PART II EMPIRICAL ANALYSIS 103
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more persons living together and di
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6.4 Linking Household and Store Dat
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Table 6.1 contains the results <str
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The age of the sho
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Table 6.4: Frequency distribution <
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7 EMPIRICAL ANALYSIS ONE: DRIVERS O
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Table 7.1: Operationalization <stro
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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 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
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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: We hypothesized that within impulse
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
Page 201 and 202: categories revealed that the strong
Page 203 and 204: degree. When households switch bran
Page 205 and 206: specific sales promotion reaction m
Page 207 and 208: increasing (Inman and Winer 1998),
Page 209 and 210: indirectly from promotional purchas
Page 211 and 212: quantity downward for potato chips.
Page 213 and 214: 9.2.2.3 Deal Proneness With respect
Page 215 and 216: 204 related to promotion response.
Page 217 and 218: influenced by out-of</stron
Page 219 and 220: Andrews, K.Z. (1997), “Do Marketi
Page 221 and 222: Blattberg, R.C., Eppen, G.D. and J.
Page 223 and 224: Chintagunta, P. (1993), “Investig
Page 225 and 226: East, R. and K. Hammond (1996), “
Page 227 and 228: Gupta, Sachin and P.K. Chintagunta
Page 229 and 230: Kahn, B.E., Morrison, D.G.and G.P.
Page 231 and 232: Lattin, J.M. and R.E. Bucklin (1989
Page 233 and 234: 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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