Analysis of Sales Promotion Effects on Household Purchase Behavior

<strong>Promotion</strong>al extra unit sales
Figure 8.4: Decomposition <strong>of</strong> promotional incremental unit sales, assigning accelerated
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brand switches to this brand switch instead <strong>of</strong> to the change in time
The results <strong>of</strong> this decomposition can be found in Table 8.12.
Table 8.12: Unit-sales decomposition <strong>of</strong> extra promotional sales where accelerated and
decelerated brand switches are assigned to brand switching
Product
category
Change in time (TA)
<strong>Sales</strong> are extra sales
No change in time
Change in purchase
time (TA)
Accelerated Purchases (TA - )
Decelerated Purchases (TA + )
Brand switch (BS)
<strong>Sales</strong> are extra sales
No brand switch (QP)
<strong>Sales</strong> minus non-promotional sales are extra sales
Brand switching
(BS)
S<strong>of</strong>t drinks 0.26 0.61 0.14
Fruit juice 0.34 0.55 0.10
C<strong>of</strong>fee 0.15 0.80 0.06
Potato chips 0.43 0.38 0.17
Candy bars 0.25 0.74 0.01
Pasta 0.25 0.75 0.00
Overall 0.24 0.65 0.10
Change in purchase
quantity (QP)
These results lead to a different view on the promotional bump decomposition. On average,
65% percent <strong>of</strong> the additional promotional sales are due to brand switching. About half the
changes in purchase times are accompanied by a brand switch. The relative strength <strong>of</strong> brand
switching is therefore almost doubled, compared to the first decomposition (focal point is
change in purchase timing).
BS
No BS
BS
No BS