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Analysis of Sales Promotion Effects on Household Purchase Behavior

Analysis of Sales Promotion Effects on Household Purchase Behavior

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drinks, fruit juice, c<str<strong>on</strong>g>of</str<strong>on</strong>g>fee, potato chips, candy bars, pasta)) are used to test the hypotheses. The<br />

most interesting findings are menti<strong>on</strong>ed in the summary below.<br />

9.2.1.1 Drivers <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>Sales</str<strong>on</strong>g> <str<strong>on</strong>g>Promoti<strong>on</strong></str<strong>on</strong>g> Resp<strong>on</strong>se<br />

Which household characteristics determine whether households resp<strong>on</strong>d to a promoti<strong>on</strong>?<br />

Since the 1960s, managers and researchers have tried to identify the characteristics <str<strong>on</strong>g>of</str<strong>on</strong>g> those<br />

households that are resp<strong>on</strong>sive to sales promoti<strong>on</strong>s (e.g., Webster 1965, Massy et al. 1968,<br />

Bell et al. 1999). However, prior research led to c<strong>on</strong>flicting findings. A clear, unequivocal<br />

relati<strong>on</strong>ship between household variables such as demographics, socio-ec<strong>on</strong>omics,<br />

psychographics, purchase variables, has not yet been found. This research investigates these<br />

relati<strong>on</strong>ships in depth across six product categories (s<str<strong>on</strong>g>of</str<strong>on</strong>g>t drinks, fruit juice, c<str<strong>on</strong>g>of</str<strong>on</strong>g>fee, potato<br />

chips, candy bars, pasta).<br />

The following household characteristics are related to the probability <str<strong>on</strong>g>of</str<strong>on</strong>g> resp<strong>on</strong>ding<br />

to a promoti<strong>on</strong>: social class, household size, age, employment situati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the shopping<br />

resp<strong>on</strong>sible pers<strong>on</strong>, presence <str<strong>on</strong>g>of</str<strong>on</strong>g> n<strong>on</strong>-school age children, store loyalty, basket size, and<br />

shopping frequency. The promoti<strong>on</strong> resp<strong>on</strong>sive households can be pr<str<strong>on</strong>g>of</str<strong>on</strong>g>iled as larger<br />

households c<strong>on</strong>sisting <str<strong>on</strong>g>of</str<strong>on</strong>g> older children and a somewhat older (≥ 35 years <str<strong>on</strong>g>of</str<strong>on</strong>g> age) shopping<br />

resp<strong>on</strong>sible pers<strong>on</strong> that works out <str<strong>on</strong>g>of</str<strong>on</strong>g> the house and shops not very <str<strong>on</strong>g>of</str<strong>on</strong>g>ten, but purchases larger<br />

shopping baskets. Practiti<strong>on</strong>ers can make use <str<strong>on</strong>g>of</str<strong>on</strong>g> this informati<strong>on</strong> to improve their promoti<strong>on</strong>al<br />

strategies.<br />

<str<strong>on</strong>g>Promoti<strong>on</strong></str<strong>on</strong>g>s can influence household purchase behavior inside or outside the store.<br />

Some households scan newspapers and leaflets for interesting sales promoti<strong>on</strong>s, whereas other<br />

households <strong>on</strong>ly pay attenti<strong>on</strong> to promoti<strong>on</strong>s inside the retail store. It is interesting to know<br />

whether the probability to resp<strong>on</strong>d to these different types <str<strong>on</strong>g>of</str<strong>on</strong>g> promoti<strong>on</strong>s, in-store and out-<str<strong>on</strong>g>of</str<strong>on</strong>g>store<br />

promoti<strong>on</strong>s, is related to different household characteristics. It is found that households<br />

without n<strong>on</strong>-school age children in which the shopping resp<strong>on</strong>sible pers<strong>on</strong> has a paid job are<br />

very promoti<strong>on</strong> resp<strong>on</strong>sive, especially with respect to in-store promoti<strong>on</strong>s. A sufficient<br />

grocery budget combined with time pressure results in more in-store promoti<strong>on</strong> resp<strong>on</strong>se.<br />

These types <str<strong>on</strong>g>of</str<strong>on</strong>g> promoti<strong>on</strong>s are used as time saving cues. As unplanned purchasing is<br />

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