Analysis of Sales Promotion Effects on Household Purchase Behavior

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Chandon et al. 2000). But deal proneness should not be conceptualized as isomorphic with actualized promotion-responsiveness purchasing behavior. Instead, it should be conceptualized at a psychological level as a construct that affects the actualized purchasing behavior (Lichtenstein et al. 1990). Deal proneness actually represents a psychological trait and can therefore not be directly measured as promotion utilization, neither within nor across different product categories. Ainslie and Rossi (1998) are among the first researchers who investigated similarities in brand choice behavior across product categories to get possible evidence for the notion that sensitivity to marketing mix variables is a consumer trait and not unique to specific product categories. The existence <strong>of</strong> deal proneness was not inferred directly from promotional behavior, but indirectly. Other possible causes were taken into account and the remaining, unexplained part <strong>of</strong> household purchase behavior was used to draw conclusions regarding deal proneness. Sensitivity was interpreted as brand choice marketing mix sensitivity. According to Ainslie and Rossi (1998), sensitivity to marketing mix variables is a consumer trait and is not unique to specific product categories. In this research, we especially elaborate on the work performed by Ainslie and Rossi (1998). The existence <strong>of</strong> deal proneness is derived indirectly from household purchase behavior. After taking other possible causes into account, the unexplained part <strong>of</strong> household purchase behavior is used to draw conclusions regarding the existence <strong>of</strong> deal proneness. Instead <strong>of</strong> focusing on one reaction mechanism (e.g., Ainslie and Rossi 1998), we extend the deal proneness study by incorporating brand choice, but also purchase quantity, purchase timing, and category expansion. Purchase behavior will be studied at the individual household level within and across product category, promotion type, and sales promotion reaction mechanism, to gain insights in the promotion response behavior <strong>of</strong> households. We expect that some households will tend to react to a sales promotion through brand switching, other households might show purchase acceleration, whereas a third type <strong>of</strong> household might have a tendency towards category expansion. A high incidence <strong>of</strong> one type <strong>of</strong> reaction mechanism is not necessarily correlated with a high incidence <strong>of</strong> another type <strong>of</strong> mechanism. We will investigate the degree <strong>of</strong> similarity across product categories in household promotion response behavior. Furthermore, we will analyze whether these similarities can 45
e fully explained by household characteristics such as income, available time, children, etc., or if there really is something like an individual deal proneness trait. 2.3.5 Variety Seeking Besides deal proneness, also variety seeking (intrinsic desire for variety) is recognized as an important trait that influences consumer choice behavior (e.g., McAlister and Pessemier 1982). The construct <strong>of</strong> variety seeking has been the center <strong>of</strong> the same debate as innovativeness and deal proneness in this and earlier research (e.g., Ainslie and Rossi 1998, Lichtenstein 1995; Schneider and Currim 1991). Is it just overt behavior or does it represent some underlying predisposition? The discussion has resulted in conceptualizing variety seeking as an underlying product category-specific individual trait (e.g., Pessemier and Handelsman 1984, van Trijp et al. 1996, van Trijp and Steenkamp 1992). We will refrain from that discussion, and only use the implications for possible switch behavior (brands and stores). Variety seeking tendency can result in switch behavior even without a promotional incentive. In analyzing the data and estimating promotional brand switching behavior, it is therefore <strong>of</strong> utmost importance to keep in mind that overt brand and/or store switch behavior is not necessarily caused by promotional activity, it could also be the result <strong>of</strong> variety seeking behavior. Variety seeking research recently has been emphasizing the need to separate true variety seeking behavior (which results from intrinsic motivations) from derived varied behavior (which is extrinsically motivated). Van Trijp et al. (1996) argued that variety seeking and switching research would benefit greatly by isolating those brand switches that are <strong>of</strong> the variety seeking type from those that are extrinsically motivated before estimating parameters associated with these behaviors. Malhotra et al. (1999) summarized the state <strong>of</strong> the art in marketing research by reviewing articles during 1987-1997 published in the Journal <strong>of</strong> Marketing Research. One <strong>of</strong> the outcomes is the need to distinguish between true variety seeking behavior (i.e., intrinsically motivated) and derived varied behavior (i.e., extrinsically motivated). We therefore have to correct for this kind <strong>of</strong> intrinsic variety seeking behavior, at least take this into account when studying overt promotion response in general and brand switch behavior specifically. 46
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 36 and 37: product use coupled with the import
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 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
Page 89 and 90: and less than 2 percent by stockpil
Page 91 and 92: into a unit sales decomposition and
Page 93 and 94: 4.3.4 Storability/Perishability Sto
Page 95 and 96: Economic theory ignores mental deci
Page 97 and 98: seeking (cf. Assael 1987, Desphande
Page 99 and 100: there another factor that is relate
Page 101 and 102: Pr(event) 90 = 1+ 1 z e − Here Z
Page 103 and 104: 5.4.2 Sales <stron
Page 105 and 106: 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 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
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Title: Beyond Generics;A closer loo
Page 280 and 281:
Title: Planning and Control Concept
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