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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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Chand<strong>on</strong> et al. 2000). But deal pr<strong>on</strong>eness should not be c<strong>on</strong>ceptualized as isomorphic with<br />

actualized promoti<strong>on</strong>-resp<strong>on</strong>siveness purchasing behavior. Instead, it should be<br />

c<strong>on</strong>ceptualized at a psychological level as a c<strong>on</strong>struct that affects the actualized purchasing<br />

behavior (Lichtenstein et al. 1990). Deal pr<strong>on</strong>eness actually represents a psychological trait<br />

and can therefore not be directly measured as promoti<strong>on</strong> utilizati<strong>on</strong>, neither within nor<br />

across different product categories. Ainslie and Rossi (1998) are am<strong>on</strong>g the first<br />

researchers who investigated similarities in brand choice behavior across product<br />

categories to get possible evidence for the noti<strong>on</strong> that sensitivity to marketing mix variables<br />

is a c<strong>on</strong>sumer trait and not unique to specific product categories. The existence <str<strong>on</strong>g>of</str<strong>on</strong>g> deal<br />

pr<strong>on</strong>eness was not inferred directly from promoti<strong>on</strong>al behavior, but indirectly. Other<br />

possible causes were taken into account and the remaining, unexplained part <str<strong>on</strong>g>of</str<strong>on</strong>g> household<br />

purchase behavior was used to draw c<strong>on</strong>clusi<strong>on</strong>s regarding deal pr<strong>on</strong>eness. Sensitivity was<br />

interpreted as brand choice marketing mix sensitivity. According to Ainslie and Rossi<br />

(1998), sensitivity to marketing mix variables is a c<strong>on</strong>sumer trait and is not unique to<br />

specific product categories.<br />

In this research, we especially elaborate <strong>on</strong> the work performed by Ainslie and Rossi<br />

(1998). The existence <str<strong>on</strong>g>of</str<strong>on</strong>g> deal pr<strong>on</strong>eness is derived indirectly from household purchase<br />

behavior. After taking other possible causes into account, the unexplained part <str<strong>on</strong>g>of</str<strong>on</strong>g> household<br />

purchase behavior is used to draw c<strong>on</strong>clusi<strong>on</strong>s regarding the existence <str<strong>on</strong>g>of</str<strong>on</strong>g> deal pr<strong>on</strong>eness.<br />

Instead <str<strong>on</strong>g>of</str<strong>on</strong>g> focusing <strong>on</strong> <strong>on</strong>e reacti<strong>on</strong> mechanism (e.g., Ainslie and Rossi 1998), we extend the<br />

deal pr<strong>on</strong>eness study by incorporating brand choice, but also purchase quantity, purchase<br />

timing, and category expansi<strong>on</strong>. <strong>Purchase</strong> behavior will be studied at the individual<br />

household level within and across product category, promoti<strong>on</strong> type, and sales promoti<strong>on</strong><br />

reacti<strong>on</strong> mechanism, to gain insights in the promoti<strong>on</strong> resp<strong>on</strong>se behavior <str<strong>on</strong>g>of</str<strong>on</strong>g> households. We<br />

expect that some households will tend to react to a sales promoti<strong>on</strong> through brand switching,<br />

other households might show purchase accelerati<strong>on</strong>, whereas a third type <str<strong>on</strong>g>of</str<strong>on</strong>g> household might<br />

have a tendency towards category expansi<strong>on</strong>. A high incidence <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>on</strong>e type <str<strong>on</strong>g>of</str<strong>on</strong>g> reacti<strong>on</strong><br />

mechanism is not necessarily correlated with a high incidence <str<strong>on</strong>g>of</str<strong>on</strong>g> another type <str<strong>on</strong>g>of</str<strong>on</strong>g> mechanism.<br />

We will investigate the degree <str<strong>on</strong>g>of</str<strong>on</strong>g> similarity across product categories in household<br />

promoti<strong>on</strong> resp<strong>on</strong>se behavior. Furthermore, we will analyze whether these similarities can<br />

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