Analysis of Sales Promotion Effects on Household Purchase Behavior

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Thus the three models <strong>of</strong> consumer behavior treated in this chapter focus on
different aspects <strong>of</strong> consumer behavior. Interesting to notice is that these theories can
predict the same, but also different effects <strong>of</strong> promotions. It is interesting to mention that
two theories that do predict a similar promotional effect <strong>of</strong>ten use entirely different
arguments. Take, for example, the effect <strong>of</strong> price promotions in the long run. Selfperception
theory (based on the stimulus-organism-response model) suggests that repeat
purchase probabilities <strong>of</strong> a brand after a promotional purchase are lower than the
corresponding values after a non-promotional purchase. At the same time, consumers form
expectations <strong>of</strong> a brand’s price on the basis <strong>of</strong>, among other things, its past prices and the
frequency with which it is price promoted (reference pricing, prospect theory, both based
on the stimulus-organism-response model)), which would also lead to lower repeat
purchase rates after deal retraction. Both self-perception theory and reference pricing
theory would therefore predict the same consequences <strong>of</strong> a promotion on purchase
probabilities, but based on different arguments.
An example <strong>of</strong> theories predicting different effects <strong>of</strong> promotions is the following.
Self-perception theory implies that consumers who buy on promotion are likely to attribute
their behavior to the presence <strong>of</strong> the promotion and not to their personal preference for the
brand. Therefore, after retraction <strong>of</strong> the promotion, leading to lower repeat purchase
probabilities. Learning theory (based on the stimulus-response-model) suggests that
promotions can help a brand through increased familiarity and experience, which would
lead to bigger repeat purchase probabilities. Economic theory, on the other hand, would
predict that the repeat purchase probabilities (after promotion) would return to the same
level as before the promotion. The utility <strong>of</strong> the brand is the same as before the promotion.
There can also be interplay between the theories mentioned above. For example,
purchase acceleration is most commonly explained by economic models focusing on
household inventory and resource variables. The consumer decision-making framework
explains purchase acceleration as resulting from the timely stimulation <strong>of</strong> problem
recognition. There may even be a deeper psychological explanation <strong>of</strong> why consumers are
willing to accelerate purchases.
The fourth type <strong>of</strong> theory dealt with in this chapter is trait theory. Where the three
other models <strong>of</strong> consumer behavior (economic model, stimulus-response model, and