Analysis of Sales Promotion Effects on Household Purchase Behavior

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considered brand loyalty to be the deliberate tendency to stay with the brand bought on the last one or more occasions. Variety seeking is viewed as the deliberate tendency to switch away from the brand purchased on the last one or more occasions. Brand loyalty is therefore used as an inverse indicator <strong>of</strong> variety seeking. Other household purchase characteristics that possibly drive promotion response are discussed in the next section. 3.3 Overview <strong>Promotion</strong> Response Findings Household Purchase Characteristics Besides brand loyalty as discussed in the preceding section, other household purchase characteristics (such as store loyalty, shopping frequency, basket size) can influence promotion response. The ones we consider will be discussed separately in the following three subsections. Note that household purchase characteristics influence promotion response at another level than household demographics. The purchase characteristics itself could be dependent on the demographic variables. Household demographics could therefore be directly related with sales promotion response, but at the same time indirectly related with sales promotion response through the household purchase characteristics. This distinction between direct and indirect relations is not incorporated in this study. Furthermore, one possible criticism <strong>of</strong> the use <strong>of</strong> shopping behavior variables as explanatory variables is that there could be a circularity problem, since shopping patterns can be influenced by promotional activities. For example, if fruit juice is heavily promoted during the period <strong>of</strong> data collection, this might induce greater purchasing by a pricesensitive consumer. In this example, category intensity becomes a proxy for price sensitivity. Our view is that this sort <strong>of</strong> phenomenon, while undoubtedly present, will have limited effect on our results. These household purchase characteristics are computed as long-run averages <strong>of</strong> shopping behavior in which bursts <strong>of</strong> promotional activities will be averaged out, resulting in good indicators for the structural household purchase characteristics. 63
3.3.1 Store Loyalty Store loyalty should be negatively related with out-<strong>of</strong>-store promotion response, because these promotions <strong>of</strong>ten require store switching (Bawa and Shoemaker 1987). There is evidence that store loyal people are less price sensitive (Bucklin and Lattin 1991, Kim et al. 1999), thus also suggesting a negative relationship. Table 3.9 shows a summary <strong>of</strong> prior empirical findings regarding the relationship between store loyalty and promotion response. We hypothesize that store loyalty and promotion response are negatively related. Table 3.9: Summary <strong>of</strong> studies relating store loyalty with promotion response 64 Sign Relationship Study + Sirohi et al. (1998) - Bawa and Shoemaker (1978) Kim et al. (1999) Hypothesis H11: Store loyalty and promotion response are negatively related. H11a: Store loyalty and promotion response are negatively related, especially for out-<strong>of</strong>-store promotions. 3.3.2 Basket Size On a given trip, the large basket shopper purchases in many product categories, and therefore fulfills a relatively large percentage <strong>of</strong> his total needs on a single visit. This implies that out<strong>of</strong>-store promotions for a wide array <strong>of</strong> categories <strong>of</strong>fer good opportunities to save money. But these shoppers lack flexibility to take advantage <strong>of</strong> occasional price deals (Bell and Lattin 1998). Small basket size shoppers, on the other hand, can benefit from price variation in the store. The total consumption needs are divided into many smaller baskets. Buying more categories when the prices are relatively low, and deferring purchases when prices are high. This seems to indicate that large basket shoppers are more focused on out-<strong>of</strong>-store sales promotions, whereas small basket shoppers are more responsive towards in-store promotions.
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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
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of promotions, or
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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 and 70: 3.2.5 Education Education links to
Page 71 and 72: these advantages therefore could be
Page 73: less likely to seek variety. More e
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
Page 121 and 122: Table 6.1 contains the results <str
Page 123 and 124: 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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