Analysis of Sales Promotion Effects on Household Purchase Behavior

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Title: Planning and Control Concepts for Material Handling Systems Author: Iris F.A. Vis Promotor(es): Pr<strong>of</strong>.dr. M.B.M. de Koster, Pr<strong>of</strong>. dr. ir. R. Dekker Defended: May 17, 2002 Series number: 14 Published: ERIM Ph.D. series Research in Management ISBN: 90-5892-021-6 Title: Essays on Agricultural Co-operatives; Governance Structure in Fruit and Vegetable Chains Author: Jos Bijman Promotor(es): Pr<strong>of</strong>.dr. G.W.J. Hendrikse Defended: June 13, 2002 Series number: 15 Published: ERIM Ph.D. series Research in Management ISBN: 90-5892-024-0 269
<strong>Analysis</strong> <strong>of</strong> <strong>Sales</strong> <strong>Promotion</strong> <strong>Effects</strong> on Household Purchase Behavior Manufacturers and retailers are spending more and more <strong>of</strong> their marketing money on sales promotions. Conflicting empirical results exist with respect to the effects <strong>of</strong> these sales promotions on household purchase behavior. Based on household scanner data, new insights are developed into the drivers <strong>of</strong> household promotion response and into the different reaction mechanisms that constitute household promotion response. ERIM The Erasmus Research Institute <strong>of</strong> Management (ERIM) is the research school in the field <strong>of</strong> management <strong>of</strong> Erasmus University Rotterdam. The founding partners <strong>of</strong> ERIM are the Rotterdam School <strong>of</strong> Management / Faculteit Bedrijfskunde and the Rotterdam School <strong>of</strong> Economics. ERIM was founded in 1999 and is <strong>of</strong>ficially accredited by the Royal Netherlands Academy <strong>of</strong> Arts and Sciences (KNAW). The research undertaken by ERIM focuses on the management <strong>of</strong> the firm in its environment, its intra- and inter-firm relations, and its business processes in their interdependent connections. The objective <strong>of</strong> ERIM is to carry out first-rate research in management and to <strong>of</strong>fer an advanced Ph.D. program in management. www.erim.eur.nl ISBN 90-5892-029-1
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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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7.5.2.8 Variety Seeking Two intrins
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anymore. Therefore it is concluded
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Thus, store loyalty and promotion r
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dummies add up to one. This implies
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Table 7.22: Overview empirical test
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enacting-on-impulse hypothesis and
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Table 7.23: Summary of</str
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Table 7.24: Correlation error coeff
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another category? Or do households
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and unweighted. With respect to the
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164 In general, the average quantit
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Purchase frequency is defined as th
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Table 8.3: Product category rating
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Table 8.4: Pearson correlation betw
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We hypothesized that within impulse
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measure (PU). Referring to Figure A
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Table 8.6: Significant within categ
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looked at this promotional bump dec
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Table 8.8: Differences in promotion
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approach (about one third) are much
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promotions lead to large purchase t
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studies. Promotion
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Promotional extra
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categories revealed that the strong
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degree. When households switch bran
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specific sales promotion reaction m
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increasing (Inman and Winer 1998),
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indirectly from promotional purchas
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quantity downward for potato chips.
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9.2.2.3 Deal Proneness With respect
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204 related to promotion response.
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influenced by out-of</stron
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Andrews, K.Z. (1997), “Do Marketi
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Blattberg, R.C., Eppen, G.D. and J.
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Chintagunta, P. (1993), “Investig
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East, R. and K. Hammond (1996), “
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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
Page 241 and 242: Winer, R.S., Bucklin, R.E., Deighto
Page 244 and 245: APPENDIX A4: Research Overview Tabl
Page 246: Table A4.1 continued Article Promot
Page 249 and 250: � Size of munici
Page 251 and 252: Table A7.1 continued Symbol Descrip
Page 253 and 254: Table A7.2: Data legitimacy check (
Page 255 and 256: Table A7.3: Results binary logistic
Page 257 and 258: Table A7.4: Results interacting wit
Page 259 and 260: Table A7.5: Results age and size no
Page 261 and 262: Table A7.5 continued Variable B S.E
Page 263 and 264: Table A8.1 continued Impulse BS TA
Page 265 and 266: Table A8.2 continued Number <strong
Page 267 and 268: Table A8.3: Relative occurrence and
Page 269 and 270: Figure A8.2: Decomposing total prom
Page 271 and 272: interessante aanbieding is. Combina
Page 273 and 274: aantalmerken in een categorie en im
Page 276 and 277: ERASMUS RESEARCH INSTITUTE OF MANAG
Page 278 and 279: Title: Beyond Generics;A closer loo
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