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Consumer Promotions and the Acceleration of Product Purchases

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Author Info

  • Scott A. Neslin

    (Dartmouth College)

  • Caroline Henderson

    (Dartmouth College)

  • John Quelch

    (Harvard Business School)

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    Abstract

    One potential consequence of consumer promotions is the acceleration of consumer category purchases. Purchase acceleration can assume two forms: purchasing of a larger quantity or shortening of interpurchase time. This research presents an analytical framework for measuring purchase acceleration, and applies that framework to the analysis of two product classes. The effects of coupons, manufacturer and retailer advertising, and price cuts are examined. Different market segments and loyalty groups are also compared in terms of the degree of purchase acceleration exhibited.

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    File URL: http://dx.doi.org/10.1287/mksc.4.2.147
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    Bibliographic Info

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 4 (1985)
    Issue (Month): 2 ()
    Pages: 147-165

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    Handle: RePEc:inm:ormksc:v:4:y:1985:i:2:p:147-165

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    Web page: http://www.informs.org/
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    Related research

    Keywords: sales promotion; couponing; purchase timing; purchase quantity;

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    Citations

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    Cited by:
    1. Richards, Timothy J. & Patterson, Paul M., 1998. "The Impact of Advertising on Product Choice, Purchase frequency and Purchase Quantity: Washington Apples," Working Papers 28543, Arizona State University, Morrison School of Agribusiness and Resource Management.
    2. Fok, D. & Paap, R. & Franses, Ph.H.B.F., 2002. "Modeling dynamic effects of promotion on interpurchase times," Econometric Institute Research Papers EI 2002-37, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. Rutger van Oest & Richard Paap & Philip Hans Franses, 2002. "A Joint Framework for Category Purchase and Consumption Behavior," Tinbergen Institute Discussion Papers 02-124/4, Tinbergen Institute.
    4. Pozzi, Andrea, 2013. "E-commerce as a stockpiling technology: Implications for consumer savings," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 677-689.
    5. Raju, Jagmohan S., 1995. "Theoretical models of sales promotions: Contributions, limitations, and a future research agenda," European Journal of Operational Research, Elsevier, vol. 85(1), pages 1-17, August.
    6. Timothy Richards, 2007. "A nested logit model of strategic promotion," Quantitative Marketing and Economics, Springer, vol. 5(1), pages 63-91, March.
    7. Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
    8. Boute, Robert N. & Disney, Stephen M. & Lambrecht, Marc R. & Houdt, Benny Van, 2014. "Coordinating lead times and safety stocks under autocorrelated demand," European Journal of Operational Research, Elsevier, vol. 232(1), pages 52-63.
    9. Chao Wang & Ilaria Dalla Pozza, 2014. "The antecedents of customer lifetime duration and discounted expected transactions: Discrete-time based transaction data analysis," Working Papers 2014-203, Department of Research, Ipag Business School.
    10. Sheu, Jiuh-Biing, 2011. "Marketing-driven channel coordination with revenue-sharing contracts under price promotion to end-customers," European Journal of Operational Research, Elsevier, vol. 214(2), pages 246-255, October.
    11. Robert Slonim & Ellen Garbarino, 2009. "Similarities and differences between stockpiling and reference effects," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 351-371.
    12. Aviv Nevo & Catherine Wolfram, 1999. "Prices and Coupons for Breakfast Cereals," NBER Working Papers 6932, National Bureau of Economic Research, Inc.
    13. Andrews, Melinda L. & Benedicktus, Ray L. & Brady, Michael K., 2010. "The effect of incentives on customer evaluations of service bundles," Journal of Business Research, Elsevier, vol. 63(1), pages 71-76, January.
    14. Jeongwen Chiang & Ching-Fan Chung & Emily Cremers, 2001. "Promotions and the pattern of grocery shopping time," Journal of Applied Statistics, Taylor & Francis Journals, vol. 28(7), pages 801-819.
    15. Berning, Joshua P., 2014. "The Effect of Breakfast Cereal Coupons on the Nutritional Quality of Household Purchases," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(A).
    16. Brian W. Gould, 1996. "Consumer Promotion and Purchase Timing: The Case of Cheese," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 396, Wisconsin-Madison Agricultural and Applied Economics Department.
    17. Brian GOULD, 1996. "Consumer Promotion And Purchase Timing: The Case Of Cheese," Staff Papers 396, University of Wisconsin Madison, AAE.
    18. Rutger van Oest & Philip Hans Franses & Richard Paap, 2002. "A Dynamic Utility Maximization Model for Product Category Consumption," Tinbergen Institute Discussion Papers 02-097/4, Tinbergen Institute.
    19. Tülin Erdem & Susumu Imai & Michael Keane, 2003. "Brand and Quantity Choice Dynamics Under Price Uncertainty," Quantitative Marketing and Economics, Springer, vol. 1(1), pages 5-64, March.
    20. Bockenholt, Ulf, 1998. "Mixed INAR(1) Poisson regression models: Analyzing heterogeneity and serial dependencies in longitudinal count data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 317-338, November.

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