Analysis of Sales Promotion Effects on Household Purchase Behavior

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Table 8.7: Aggregated relative occurrence promotional response effects Relative occurrence S<strong>of</strong>t Brand switching (BS) Decreased quantity (QP-) Increased quantity (QP+) Purchase time acceleration (TA-) Purchase time deceleration (TA+) drinks Fruit juice C<strong>of</strong>fee Potato chips Candy bars 0.61 0.68 0.68 0.27 0.90 0.19 0.12 0.02 0.15 0.40 0.51 0.53 0.69 0.43 0.56 0.25 0.36 0.31 0.35 0.67 0.14 0.16 0.15 0.07 0.24 The results presented in Table 8.7 show that promotions lead more <strong>of</strong>ten to increased purchase quantities and accelerated purchase times than to decreased purchase quantities and postponed purchase times. S<strong>of</strong>t drink, fruit juice, and c<strong>of</strong>fee promotions mainly lead to brand switching and increased purchase quantity. The relative occurrence <strong>of</strong> the effects differs the most between potato chips and candy bars promotions. Brand switching, increased purchase quantity, and purchase time are the most <strong>of</strong>ten occurring effects for both product categories, but the degree <strong>of</strong> occurrence is much higher for candy bar promotions. <strong>Promotion</strong>s seem to influence potato chips purchases the least and candy bar purchases the most. The detailed results presented in Table A8.3 show that brand switching occurs the least for potato chips promotions and the most for candy bar promotions. Candy bar promotions also have the largest influence on household purchase timing decisions. Purchases within this category seem to be guided by promotions to a large extent. Interestingly, the effect <strong>of</strong> a sales promotion on purchase quantity is larger when it is not in combination with brand switching. Table 8.8 contains the comparison between brand switch and non-brand switch involved aggregated effects for each product category separately. The cells represent the average quantities per shopping trip when the mentioned effects occur. 179
Table 8.8: Differences in promotional purchase quantity comparing favorite brand with 180 non-favorite brand purchases <strong>Effects</strong> per category Favorite brand S<strong>of</strong>t drinks purchases Non-favorite brand purchases Relative difference QP 4342 2994 -31% QP&TA 4346 2902 -33% Fruit juice QP 4121 2713 -34% QP&TA 4673 2470 -47% C<strong>of</strong>fee QP 1092 1063 -3% QP&TA 1030 1092 +6% Potato chips QP 351 304 -13% QP&TA 352 316 -10% Candy bars QP 400 297 -26% QP&TA 397 286 -28% For fruit juice promotions, the difference is the largest. Purchase quantities for non-favorite brands are 40 percent lower than for favorite brands. No difference is found for c<strong>of</strong>fee products. But, overall, the largest quantities bought on promotions are made for favorite brand purchases. Combining this with the insight from Chapter 7 that promotions for the favorite have a big impact on the probability to respond, it seems as though a large part <strong>of</strong> promotional sales comes from loyal shoppers and is borrowed from future purchases. The findings presented thus far, do not provide insights into the relative strength <strong>of</strong> each <strong>of</strong> the promotional bump reaction mechanisms. The relative occurrences and the average effect <strong>of</strong> each combination <strong>of</strong> promotional reaction mechanisms are provided in Table A8.3,
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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
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7.5 Results Drivers of</str
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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
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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 and 186: measure (PU). Referring to Figure A
Page 187 and 188: Table 8.6: Significant within categ
Page 189: looked at this promotional bump dec
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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
Page 235 and 236: Petty, R.E. and J.T. Cacioppo (1981
Page 237 and 238: Shimp, T.A. (1990). Promoti
Page 239 and 240: 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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