Analysis of Sales Promotion Effects on Household Purchase Behavior

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,