Analysis of Sales Promotion Effects on Household Purchase Behavior

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Contents 1 INTRODUCTION AND OVERVIEW................................................................1 1.1 Introduction.............................................................................................................1 1.2 <strong>Sales</strong> <strong>Promotion</strong>s ....................................................................................................5 1.3 Research Questions.................................................................................................8 1.4 Scientific Contribution..........................................................................................10 1.5 Managerial Relevance...........................................................................................10 1.6 Outline <strong>of</strong> the Thesis .............................................................................................11 PART I THEORY, HYPOTHESES AND DEVELOPMENT OF THE RESEARCH MODEL................................................................................................................15 2 THEORIES OF CONSUMER BUYING BEHAVIOR....................................17 2.1 Introduction...........................................................................................................17 2.2 Basic Models <strong>of</strong> Consumer Behavior....................................................................17 2.2.1 Economic Model.....................................................................................18 2.2.2 Stimulus-Response Model ......................................................................20 2.2.3 Stimulus-Organism-Response Model......................................................22 2.2.4 Trait Theory............................................................................................25 2.3 Theories <strong>of</strong> Consumer Behavior Applied to <strong>Sales</strong> <strong>Promotion</strong>s.............................26 2.3.1 Economic Model Applied to <strong>Sales</strong> <strong>Promotion</strong>s ......................................26 2.3.2 Stimulus-Response Model Applied to <strong>Sales</strong> <strong>Promotion</strong>s ........................27 2.3.2.1 Classical Conditioning ..............................................................27 2.3.2.2 Operant Conditioning................................................................29 2.3.3 Stimulus-Organism-Response Model Applied to <strong>Sales</strong> <strong>Promotion</strong>s.......30 2.3.3.1 Attribution Theory ....................................................................30 2.3.3.2 Theories <strong>of</strong> Price Perception.....................................................33 2.3.3.3 Attitude Models ........................................................................35 2.3.4 Deal Proneness .......................................................................................37 2.3.4.1 The Concept..............................................................................38 2.3.4.2 Literature Overview..................................................................39 2.3.4.3 Gaps in the Deal Proneness Literature ......................................44 2.3.5 Variety Seeking.......................................................................................46 2.4 Concluding Remarks Regarding the Relevance <strong>of</strong> Different Consumer Behavior Theories to the Field <strong>of</strong> <strong>Sales</strong> <strong>Promotion</strong>s.............................................47
3 HOUSEHOLD CHARACTERISTICS RELATED TO PROMOTION RESPONSE.........................................................................................................51 3.1 Introduction...........................................................................................................51 3.2 Overview <strong>Promotion</strong> Response Findings Household Characteristics....................51 3.2.1 Income ....................................................................................................52 3.2.2 Household Size .......................................................................................55 3.2.3 Type <strong>of</strong> Residence...................................................................................56 3.2.4 Age..........................................................................................................56 3.2.5 Education ................................................................................................58 3.2.6 Employment Situation.............................................................................59 3.2.7 Presence <strong>of</strong> Non-school Age Children....................................................61 3.2.8 Variety Seeking.......................................................................................61 3.3 Overview <strong>Promotion</strong> Response Findings Household Purchase Characteristics ....63 3.3.1 Store Loyalty...........................................................................................64 3.3.2 Basket Size..............................................................................................64 3.3.3 Shopping Frequency ...............................................................................65 4 DECOMPOSING PROMOTION RESPONSE INTO SALES PROMOTION REACTION MECHANISMS..................................................69 4.1 Introduction...........................................................................................................69 4.2 <strong>Sales</strong> <strong>Promotion</strong> Reaction Mechanisms ................................................................69 4.2.1 Brand Switching......................................................................................70 4.2.2 Store Switching.......................................................................................71 4.2.3 Purchase Acceleration.............................................................................72 4.2.4 Category Expansion ................................................................................73 4.2.5 Repeat Purchasing...................................................................................75 4.2.6 Integrating the Mechanisms ....................................................................77 4.3 Product Category Characteristics Related to <strong>Sales</strong> <strong>Promotion</strong> Reaction Mechanism............................................................................................................80 4.3.1 Average Price Level................................................................................80 4.3.2 Purchase Frequency ................................................................................81 4.3.3 <strong>Promotion</strong>al Activity...............................................................................81 4.3.4 Storability/Perishability ..........................................................................82 4.3.5 Number <strong>of</strong> Brands...................................................................................82 4.3.6 Impulse....................................................................................................83 5 METHODOLOGY, MODEL, AND MEASURES...........................................85 5.1 Introduction...........................................................................................................85 5.2 Perspective <strong>of</strong> <strong>Analysis</strong> .........................................................................................85 5.3 Research Methodology..........................................................................................87 5.4 Research Models...................................................................................................89 5.4.1 <strong>Promotion</strong> Response Model ................................................................89 5.4.2 <strong>Sales</strong> <strong>Promotion</strong> Reaction Mechanism Measures....................................92 5.4.2.1 <strong>Promotion</strong>al Utilization.............................................................93 5.4.2.2 Brand Switching........................................................................94 5.4.2.3 Purchase Acceleration...............................................................95
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 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 56 and 57: Chandon et al. 2000). But deal pron
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2.4 Concluding Remarks Regarding th
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stimulus-organism-response model) c
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Shoemaker 1987). Several factors ha
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such as display promotions. Althoug
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3.2.3 Type of resi
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3.2.5 Education Education links to
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these advantages therefore could be
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less likely to seek variety. More e
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3.3.1 Store Loyalty Store loyalty s
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more often (probab
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Table 3.12 continued Hypothesis H9a
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4.2.1 Brand Switching Brand switchi
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involvement purchases for most cons
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Neslin (1998), there is a great nee
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are called “attributions.” Attr
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and less than 2 percent by stockpil
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into a unit sales decomposition and
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4.3.4 Storability/Perishability Sto
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Economic theory ignores mental deci
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seeking (cf. Assael 1987, Desphande
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there another factor that is relate
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Pr(event) 90 = 1+ 1 z e − Here Z
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5.4.2 Sales <stron
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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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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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