Analysis of Sales Promotion Effects on Household Purchase Behavior

3.2.3 Type <strong>of</strong> residence
Type <strong>of</strong> residence is related to inventory holding possibilities. Having sufficient storage
space makes it easier for consumers to respond to sales promotions (Blattberg et al. 1978).
This is true for space-demanding promotions or space-demanding sales promotion reaction
mechanisms (for example purchase acceleration) but not promotional response effects such
as brand switching or store switching. Ailawadi et al. (2000) found that people who live in
a house instead <strong>of</strong> an apartment perceive that they have more storage space. Table 3.3
shows a summary <strong>of</strong> empirical findings regarding the relationship between storage space
and promotion response. We therefore hypothesize that households living in a larger house
(not in an apartment) are more promotion responsive.
Table 3.3: Summary <strong>of</strong> studies relating storage space with promotion response
56
Sign Relationship Study
+ Blattberg et al. (1978)
Ailawadi et al. (2000)
Hypothesis H4: Households living in a larger house (not in an apartment)
are more promotion responsive.
One could imagine that storage space plays a more important role in household
promotional purchase decisions when dealing with impulse purchases due to in-store
promotions. We therefore hypothesize that size <strong>of</strong> the house is more important for in-store
promotions than for out-<strong>of</strong>-store promotions (H4a).
3.2.4 Age
Bellenger et al. (1978) suggested that the age distribution <strong>of</strong> impulse purchasers is bimodal.
That is, both young and old adults have shown a tendency to purchase on impulse. Younger
consumers have greater motivation to process in-store stimuli, and will make more
decisions at the point <strong>of</strong> purchase (Inman and Winer 1998).