Analysis of Sales Promotion Effects on Household Purchase Behavior

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product use coupled with the importance <strong>of</strong> affective content <strong>of</strong> the attributes or consequences <strong>of</strong> product use determine one’s intentions to purchase or not. As said before, the decision model in Figure 2.3 shows an extended picture <strong>of</strong> consumer decision-making. But, depending on the circumstances, not necessarily all elements <strong>of</strong> the model take part in each purchase decision. In-store promotions (e.g., display), for example, could lead to impulse buying, skipping the more cognitive part <strong>of</strong> decision-making. Before the three basic models <strong>of</strong> consumer behavior discussed above will be applied to the topic <strong>of</strong> sales promotions in Section 2.3, a theory <strong>of</strong> another order is discussed. Prior research on sales promotion effects <strong>of</strong>ten makes use <strong>of</strong> trait theory (e.g., deal proneness, variety seeking). Where the three basic models <strong>of</strong> consumer behavior discussed above can be used as tools to understand consumer behavior under certain conditions, in certain situations, trait theory claims that some types <strong>of</strong> behavior are consistent across different conditions or situations. 2.2.4 Trait Theory Trait theory represents a quantitative approach to the study <strong>of</strong> personality (Blackwell et al. 2001). This theory postulates that an individual’s personality is composed <strong>of</strong> definite predispositional attributes called traits. It is assumed that traits are common to many individuals and vary in absolute amounts between individuals (Mischel 1968). It is further assumed that these traits are relatively stable and exert fairly universal effects on behavior regardless <strong>of</strong> the environmental situation (Sanford 1970). The final assumption asserts that traits can be inferred from the measurement <strong>of</strong> behavioral indicators. Some well-known examples <strong>of</strong> traits are aggressiveness, dominance, friendliness, sociability, extroversion, empathy, innovativeness, deal proneness, variety seeking, etc. One <strong>of</strong> the questions we started this chapter with was the following: “How do people go about making decisions and choices in the market place and how can sales promotions influence these decisions and choices?” The theories and models mentioned thus far (economic theory, stimulus-response model, stimulus-organism-response model, 25
trait theory) provide some insights in the first part <strong>of</strong> this question. In the next section, these consumer behavior theories are applied to the field <strong>of</strong> sales promotions to answer the second part <strong>of</strong> the question. 2.3 Theories <strong>of</strong> Consumer Behavior Applied to <strong>Sales</strong> <strong>Promotion</strong>s <strong>Sales</strong> promotions set in motion a complex interaction <strong>of</strong> management decisions and consumer behavior. If managers are ever to assume the “driver’s seat” in this interaction, they must understand not only how but also why consumers respond to promotions (Blattberg and Neslin 1990). The field <strong>of</strong> consumer behavior provides a rich collection <strong>of</strong> concepts and theories that shed light on this question. In this section, we have selected the topics from consumer behavior that are most applicable to sales promotions. In accordance with the theories <strong>of</strong> consumer behavior discussed in the previous section, we discuss the relevant topics for each <strong>of</strong> these theories for the field <strong>of</strong> sales promotions. 2.3.1 Economic Model Applied to <strong>Sales</strong> <strong>Promotion</strong>s The relevance <strong>of</strong> the economic theory for the field <strong>of</strong> sales promotions is quite straightforward. Temporary price reductions for certain products mean relaxations <strong>of</strong> the budget constraint, i.e. the possibility to purchase more <strong>of</strong> the same product. Economic theory would also imply that households with low storage costs and transaction costs are more inclined to buy on promotion. However, as discussed before in section 2.2, the economic model represents a quite oversimplified model <strong>of</strong> consumer behavior, neglecting, for example, consumers’ mental decision-making, tastes, etc. It therefore provides us with general knowledge about consumer reactions to price and income changes, but no insights in how other types <strong>of</strong> sales promotions influence consumer decisions. 26
Page 1 and 2: LINDA H. TEUNTER Analysis</
Page 4 and 5: Analysis o
Page 6 and 7: Voorwoord Soms valt de appel echt n
Page 8 and 9: Contents 1 INTRODUCTION AND OVERVIE
Page 10 and 11: 5.4.2.3.1 Inter Purchase Time .....
Page 12 and 13: 1 INTRODUCTION AND OVERVIEW 1.1 Int
Page 14 and 15: generally generated from a smaller
Page 16 and 17: switching, purchase acceleration, c
Page 18 and 19: strategy change (decrease in promot
Page 20 and 21: of promotions, or
Page 22 and 23: characteristics are important in ex
Page 24: Chapter 5 are applied to study the
Page 28 and 29: 2 THEORIES OF CONSUMER BUYING BEHAV
Page 30 and 31: systematically explored the decisio
Page 32 and 33: the part of the co
Page 34 and 35: As mentioned before, Figure 2.3 is
Page 38 and 39: 2.3.2 Stimulus-Response Model Appli
Page 40 and 41: 2.3.2.2 Operant Conditioning In ope
Page 42 and 43: X is very popular that it will brin
Page 44 and 45: But, in contrast, economic theory c
Page 46 and 47: compared to a perceived benchmark -
Page 48 and 49: High need-for-cognition (NFC) indiv
Page 50 and 51: 2.3.4.2 Literature Overview Our rev
Page 52 and 53: The previously described research h
Page 54 and 55: has its deficiencies. Any purchase
Page 56 and 57: Chandon et al. 2000). But deal pron
Page 58 and 59: 2.4 Concluding Remarks Regarding th
Page 60: stimulus-organism-response model) c
Page 63 and 64: Shoemaker 1987). Several factors ha
Page 65 and 66: such as display promotions. Althoug
Page 67 and 68: 3.2.3 Type of resi
Page 69 and 70: 3.2.5 Education Education links to
Page 71 and 72: these advantages therefore could be
Page 73 and 74: less likely to seek variety. More e
Page 75 and 76: 3.3.1 Store Loyalty Store loyalty s
Page 77 and 78: more often (probab
Page 79 and 80: Table 3.12 continued Hypothesis H9a
Page 81 and 82: 4.2.1 Brand Switching Brand switchi
Page 83 and 84: involvement purchases for most cons
Page 85 and 86: Neslin (1998), there is a great nee
Page 87 and 88:
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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Page 146 and 147:
Page 148 and 149:
Table 7.10: Relationship promotion
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Page 152 and 153:
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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
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Kahn, B.E., Morrison, D.G.and G.P.
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Lattin, J.M. and R.E. Bucklin (1989
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McAlister, L. and E. Pessemier (198
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Petty, R.E. and J.T. Cacioppo (1981
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Shimp, T.A. (1990). Promoti
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Van Trijp, H.C.M. and J.B.E.M. Stee
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Winer, R.S., Bucklin, R.E., Deighto
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APPENDIX A4: Research Overview Tabl
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Table A4.1 continued Article Promot
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� Size of munici
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Table A7.1 continued Symbol Descrip
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Table A7.2: Data legitimacy check (
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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
Page 278 and 279:
Title: Beyond Generics;A closer loo
Page 280 and 281:
Title: Planning and Control Concept
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