Analysis of Sales Promotion Effects on Household Purchase Behavior

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3.2.6 Employment Situation Retired households and households living on welfare have more time to go shopping than other households, and less money to spend (in general). One would therefore expect those households to be more promotion responsive, especially for out-<strong>of</strong>-store promotions because <strong>of</strong> the extra available time. On the other hand, Caplovitz (1963) claimed that the poor pay more, preferring to rely more on brand names instead <strong>of</strong> their own judgment. The work <strong>of</strong> Caplovitz (1963) focused on purchases <strong>of</strong> major durables. If this is also applicable to FMCG purchases, it could be the case that poor people rely on brand names, therefore purchasing for example national brands instead <strong>of</strong> store brands. Perhaps poor people use promotions less as a purchase decisive attribute. They need a national brand name to rely on. But, most findings by other researchers point in the direction that households living on welfare and retired households are more promotion responsive (e.g., Blattberg et al. 1978). We therefore hypothesize that retired households or households living on welfare are more promotion responsive, especially for out-<strong>of</strong>-store promotions (H7, H7a). Taking only the time-constraining influence <strong>of</strong> working into consideration, Ailawadi et al. (2000) argued that consumers under time pressure may use in-store promotions to save time, as they provide easily recognizable cues for simplifying the buying process. Therefore, time pressure could be negatively related to out-<strong>of</strong>-store promotion response and positively related to in-store promotion response. Iyer (1989) on the other hand found that time pressure reduces unplanned purchases. Consumers with more available time will browse longer. This was confirmed by Beatty and Ferrell (1998) and Inman and Winer (1998). Narasimhan (1984) found that using coupons (coupons being out-<strong>of</strong>-store sales promotions) was lower for households with an employed wife. Prior research thus agrees on the effect <strong>of</strong> working women on out-<strong>of</strong>-store promotions (negative), but differs in their arguments and findings for in-store promotions. Table 3.6 shows a summary <strong>of</strong> empirical findings regarding the relationship between employment situation <strong>of</strong> the hopping responsible person and promotion response. We assume that Dutch shoppers are prone to economic advantages in general. Shoppers with relatively less time to look for 59
these advantages therefore could be more focused on in-store promotion cues. We therefore hypothesize that households with working women are less out-<strong>of</strong>-store promotion responsive, but that they are not less in-store promotion responsive (H8, H8a). Table 3.6: Summary <strong>of</strong> studies relating employment situation with promotion response 60 Sign Relationship Study Retired/Welfare + Inman and Winer (1998) Robertson et al. (1984) Caplovitz (1963) Jeon (1990) Beatty and Ferrell (1998) Bawa and Shoemaker (1987) - Ailawadi et al. (2000) Urbany et al. (1996) Ainslie and Rossi (1998) Hypothesis H7: Retired households and households living on welfare are more promotion responsive. H7a: Retired households and households living on welfare are more promotion responsive, especially for out-<strong>of</strong>-store promotions. Working - Narasimhan (1984), out-<strong>of</strong>-store promotions Hypothesis H8: Households where the shopping responsible person has a paid job are less promotion responsive. H8a: Households where the shopping responsible person has a paid job are less out-<strong>of</strong>-store promotion responsive, but not less in-store promotion responsive.
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LINDA H. TEUNTER Analysis</
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Analysis o
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Voorwoord Soms valt de appel echt n
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Contents 1 INTRODUCTION AND OVERVIE
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5.4.2.3.1 Inter Purchase Time .....
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1 INTRODUCTION AND OVERVIEW 1.1 Int
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generally generated from a smaller
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switching, purchase acceleration, c
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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 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: 3.2.5 Education Education links to
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
Page 107 and 108: 96 We measure possible time acceler
Page 109 and 110: promotional post-promotional purcha
Page 111 and 112: ( 12) CategoryExpansion effect : 10
Page 114: PART II EMPIRICAL ANALYSIS 103
Page 117 and 118: more persons living together and di
Page 119 and 120: 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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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
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Title: Planning and Control Concept
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