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

Author

Listed:
  • 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.

Suggested Citation

  • Sergio Brasini & Marzia Freo & Giorgio Tassinari, 2005. "The effects of marketing activities on fast moving consumer good purchases : the case of yoghurt Italian market," Quaderni di Dipartimento 2, Department of Statistics, University of Bologna.
    • Handle: RePEc:bot:quadip:wpaper:6
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    References listed on IDEAS

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    3. Krishnamurthi, Lakshman & Mazumdar, Tridib & Raj, S P, 1992. "Asymmetric Response to Price in Consumer Brand Choice and Purchase Quantity Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 387-400, December.
    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.
    Full references (including those not matched with items on IDEAS)

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