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The effects of marketing activities on fast moving consumer good purchases : the case of yoghurt Italian market

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Author Info

  • Sergio Brasini

    ()

  • Marzia Freo

    ()

  • Giorgio Tassinari

    ()

Abstract

This paper examines whether sales promotions effectiveness depends upon the consumer’s brand loyalty and her buying behaviour and whether consumer’s behavioural characteristics in term of purchase frequency and level affect the response to promotional activities and moderate the effect of brand loyalty during the consumer choice process. Different specifications for the utility function, exploiting information on selling price, promotional activities such as displays usage, ad features in the store, 3x2 and discount, and differently brand loyalty measures have been estimated into a discrete choice framework, that is into the rational brand choice paradigm, paying attention to their effects on individuals’ probabilities to choose the specific brand during each purchase occasion. The application is run on a ACNielsen dataset of Italian households consumer panel, observed to buy at least two yoghurt packages during a year, matched to store panel data with respect to quantities, prices and promotions.

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File URL: http://amsacta.cib.unibo.it/archive/00001016/01/quaderni_ricerche_2005_EffectsOfMarketing.pdf
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Bibliographic Info

Paper provided by Department of Statistics, University of Bologna in its series Quaderni di Dipartimento with number 2.

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Date of creation: 2005
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Handle: RePEc:bot:quadip:6

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Related research

Keywords: promotional effectiveness; brand loyalty; purchase volume; purchase frequency; random utility model; multinomial logit;

References

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  1. Dekimpe, M.G. & Steenkamp, J. & Mellens, M. & Vanden Abeele, P., 1997. "Decline and variability in brand loyalty," Open Access publications from Tilburg University urn:nbn:nl:ui:12-358795, Tilburg University.
  2. Peter S. Fader & James M. Lattin & John D. C. Little, 1992. "Estimating Nonlinear Parameters in the Multinomial Logit Model," Marketing Science, INFORMS, vol. 11(4), pages 372-385.
  3. Jerome D. Greene, 1989. "Commentary on “A Brand Switching Model with Implications for Marketing Strategies”," Marketing Science, INFORMS, vol. 8(1), pages 104-105.
  4. Richard A. Colombo & Donald G. Morrison, 1989. "Note—A Brand Switching Model with Implications for Marketing Strategies," Marketing Science, INFORMS, vol. 8(1), pages 89-99.
  5. Krishnamurthi, Lakshman & Mazumdar, Tridib & Raj, S P, 1992. " Asymmetric Response to Price in Consumer Brand Choice and Purchase Quantity Decisions," Journal of Consumer Research, University of Chicago Press, vol. 19(3), pages 387-400, December.
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