Analysis of Sales Promotion Effects on Household Purchase Behavior

4 DECOMPOSING PROMOTION RESPONSE INTO SALES
PROMOTION REACTION MECHANISMS
4.1 Introduction
Drivers <strong>of</strong> promotional response were identified in the previous chapter. Hypotheses, based
on prior research, were derived describing possible relationships between household
characteristics (demographics, socio-economics, psychographics, and purchase process
characteristics) and promotion response. But, in addition, the possible effects <strong>of</strong> promotions
on household purchase behavior can also be discussed in detail. Instead <strong>of</strong> investigating what
household characteristics influence promotion response, the specific result can be <strong>of</strong> interest.
Does a promotion result in a brand switch? Or is the product bought sooner, or in larger
quantities? Or does a household buy more <strong>of</strong> a different brand?
In this chapter, theory and concepts <strong>of</strong> sales promotion response decomposition are
dealt with. The possible effects <strong>of</strong> sales promotions, the sales promotion reaction mechanisms,
are discussed in more detail in Section 4.2. Based on prior literature, hypotheses regarding the
relationship between the different sales promotion reaction mechanisms and product category
characteristics are derived in Section 4.3.
4.2 <strong>Sales</strong> <strong>Promotion</strong> Reaction Mechanisms
Five mechanisms, by which promotions may affect sales, are identified in the sales
promotion literature. These are brand switching, store switching, repeat purchasing,
purchase timing, and category expansion. Each mechanism is dealt with more in-depth in
the following subsections, along with relevant theory and empirical evidence pertaining to
the mechanisms.
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