Analysis of Sales Promotion Effects on Household Purchase Behavior

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a positive correlation between the two purchase acceleration measures (timing and quantity) means that households buy more but not sooner or buy sooner but not more <strong>of</strong> the product. This positive relation is what we expect to find in general, because consumers cannot purchase and consume infinite amounts <strong>of</strong> products. This relationship between interpurchase timing and purchase quantity is also present when there are no promotions. Most households do not have a fixed interpurchase time. Sometimes they shop once a week, but sometimes more <strong>of</strong>ten or less <strong>of</strong>ten. When one buys more <strong>of</strong> a product, one will postpone the next purchase. Snack categories might form exceptions, since buying extra volume during promotional shopping trips could easily lead to category expansion. So we would expect more consistency across reaction mechanisms for potato chips-candy bars than for pasta-c<strong>of</strong>fee. In Table 8.6 only significant correlation coefficients between a subset <strong>of</strong> the reaction mechanisms are included. These are: brand switching (BS), time acceleration (TA), net time effect (TN), promotional quantity (QP), net quantity effect (QN), and category expansion (CE). These are the direct and net effects <strong>of</strong> sales promotions. Indeed, the results from table 8.6 show that a positive coherence is found between the two net effect measures <strong>of</strong> purchase timing (TN) and purchase quantity (QN) for three categories, candy-bars, s<strong>of</strong>t drinks, and fruit juice. No significant positive correlation coefficients are found for purchase acceleration (TA) and purchased promotional quantity (QP). Households do seem to use these two reaction mechanisms (purchase timing and purchase quantity) for compensation purposes. Not during the promotional shopping trip itself, but with the subsequent promotional shopping trip. Based on the number <strong>of</strong> different pairs (15) that could have been found to be significant for each specific product category, only a limited number <strong>of</strong> significantly correlated pairs are found. But, we do believe that these significant findings represent actual behavior and are not found by accident (especially not the coefficients found with the lowest p-values). 175
Table 8.6: Significant within category across reaction mechanism correlations (α =0.10) Significant pair 176 Candybars S<strong>of</strong>t drinks BS, QP 0.19 (0.08,90) BS, QN -0.21 (0.10,60) BS,CE 0.27 (0.04,59) TA, CE -0.55 -0.39 (0.00,80) (0.00,67) TN, QN 0.45 0.19 0.25 (0.03,25) (0.07,92) (0.02,84) TN, CE -0.61 -0.72 -0.64 (0.01,19) (0.00,80) (0.00,67) QP, CE 0.40 (0.00,67) QN, CE 0.49 0.44 0.61 (0.03,19) (0.00,80) (0.00,67) Fruit juice Potato chips -0.50 (0.00,36) -0.75 (0.00,36) 0.42 (0.01,36) 0.53 (0.00,36) C<strong>of</strong>fee Pasta -0.57 (0.00,40) -0.63 (0.00,40) 0.89 (0.00,14) 0.91 (0.00,14) When promotions induce households to buy more <strong>of</strong> a product, extra consumption occurs for 5 out <strong>of</strong> the 6 product categories (QN, CE), not for c<strong>of</strong>fee. Also promotions that induce households to buy sooner lead to extra consumption for 5 out <strong>of</strong> the 6 product categories (TN, CE), not for pasta. Therefore, although households seem to act systematic in their promotional purchase behavior, purchase acceleration does seem to lead to category expansion. With respect to dependencies with brand switching, we see that s<strong>of</strong>t drink promotions lead either to less brand switching or to extra quantity bought (negative correlation between BS and QN). Apparently, preference for the favorite brands is quite strong. Conversely, the results found for fruit juice impose that brand switching and
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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
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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
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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 175 and 176: 164 In general, the average quantit
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 and 184: We hypothesized that within impulse
Page 185: measure (PU). Referring to Figure A
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
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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
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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.
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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
Page 235 and 236: 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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