Analysis of Sales Promotion Effects on Household Purchase Behavior

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9 CONCLUSIONS, DISCUSSION, AND SUGGESTIONS FOR FURTHER RESEARCH 9.1 Introduction This thesis has provided new insights in the effects <strong>of</strong> sales promotions on household purchase behavior. Two research questions were central: (1) Can we explain the observed household promotion response behavior by socioeconomic, demographic, purchase, and psychographic household characteristics such as income, available time, household composition, variety seeking, purchase frequency in accordance with consumer behavior theory? (2) Can we decompose promotional household purchase behavior into different sales promotion reaction mechanisms (brand switching, store switching, purchase acceleration, repeat purchasing, and category expansion) in accordance with prior promotional sales decomposition research? To what degree do the different sales promotion reaction mechanisms occur? Are they related, for the same household, with each other or across product categories? Theories from consumer buying behavior were applied to the topic <strong>of</strong> sales promotions in Chapter 2. This provides a theoretical understanding <strong>of</strong> why and how sales promotions influence household purchase behavior. Chapter 3 used these theories, in combination with prior research to derive hypotheses regarding household variables and their expected relation with sales promotion response, taking possible promotion type interaction effects into account. In Chapter 4 the possible mechanisms that constitute sales promotion response were dealt with in detail, the so-called sales promotion reaction mechanisms: brand switching, store switching, purchase acceleration (purchase time or purchase quantity), category expansion, and repeat purchasing. Prior findings were dealt with and hypotheses were derived that relate product category characteristics to these sales promotion reaction mechanisms. In Chapter 5, we developed a research framework and a two-step research approach. In the first step, possible drivers <strong>of</strong> household sales promotion response were identified. In the second step, the 193
specific sales promotion reaction mechanisms that constitute household promotion response were studied. Measures were derived for each sales promotion reaction mechanisms separately that take the intertemporal aspect into account (not only the promotional periods, but also pre- and post-promotional periods are considered). Chapter 6 contained the data description. Chapter 7 dealt with empirically determining drivers <strong>of</strong> household sales promotion response (the first step <strong>of</strong> the two-step research approach). The hypotheses derived regarding the relationships between household variables and promotion response were tested here. Chapter 8 dealt with decomposing promotion response into the sales promotion reaction mechanisms (the second step <strong>of</strong> the two-step research approach). Both an intertemporal approach (taking post-and pre-promotional effects into account) and a temporal approach (decomposing the current promotional sales bump) were applied. The order <strong>of</strong> discussion in this chapter is as follows. In section 9.2 we summarize and discuss the most important findings. In section 9.3 we discuss the managerial implications. In section 9.4 we identify limitations <strong>of</strong> the research in this thesis, which can be addressed in future research. 9.2 Summary, Conclusions, and Discussion <strong>of</strong> Findings 9.2.1 Household <strong>Promotion</strong> Response The findings from Chapter 7 provide insights into the first research question, identifying drivers <strong>of</strong> sales promotion response. Binary logistic regressions are used to test the hypotheses specifying the relationship <strong>of</strong> household characteristics with promotion response. The household characteristics included are socio-economic, demographic, psychographic, and purchase process variables. In addition, certain characteristics <strong>of</strong> the promotion itself are taken into account (type <strong>of</strong> promotion (display, feature, price cut or combinations <strong>of</strong> these three)), whether the promotion is for a favorite brand or not, whether other promotions are present during the same shopping trip, and whether these are for favorite brands). Furthermore, differences in the relationships between in-store and out-<strong>of</strong>-store promotions are examined. Data from two-year, 17,144 records (156 households, 6 product categories (s<strong>of</strong>t 194
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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
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Table 7.3: Relationship promotion r
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indication that decreasing marginal
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Table 7.10: Relationship promotion
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Page 154 and 155: 7.5.2.8 Variety Seeking Two intrins
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Page 162 and 163: Table 7.22: Overview empirical test
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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
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Page 185 and 186: measure (PU). Referring to Figure A
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
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Page 201 and 202: categories revealed that the strong
Page 203: degree. When households switch bran
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Page 209 and 210: indirectly from promotional purchas
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Page 213 and 214: 9.2.2.3 Deal Proneness With respect
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Page 217 and 218: influenced by out-of</stron
Page 219 and 220: Andrews, K.Z. (1997), “Do Marketi
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Page 225 and 226: East, R. and K. Hammond (1996), “
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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
Page 241 and 242: Winer, R.S., Bucklin, R.E., Deighto
Page 244 and 245: APPENDIX A4: Research Overview Tabl
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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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