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Can in-store displays improve category sales and brand market share in online stores? A study on the overall effectiveness and differences between display types in an online FMCG context

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Author Info
Breugelmans, Els
Campo, Katia (METEOR)
Abstract

Our study investigates the overall effects of in-store displays (ISD) on category sales and brand market share in an online shopping context, and compares the differences in effectiveness between ISD types. Using data from an online grocer, we examine three online ISD types that match with traditional ones: first screen (entrance), banner (end-of-aisle) and shelf tag (in-aisle) displays. Empirical results for 10 categories confirm that online ISD may substantially increase brand market share and to a lesser extent, category sales. Our results also demonstrate that not all types are equally effective. First screen displays clearly have the strongest effect on market share: they benefit from their placement on the ‘entrance’ location, central on-screen position and direct purchase link. While they only feature 1 SKU, banner displays typically feature all SKUs of a brand, yet, are placed on border-screen positions on traveling-zone pages without a direct purchase link. Based on our results, the advantage of banner displays does not weigh up against the advantages of first screen displays in most cases. Shelf tags, finally, may be very useful in attracting attention to interesting promotions, but appear to have no or at most a limited effect on their own.

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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 035.

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Date of creation: 2008
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Handle: RePEc:dgr:umamet:2008035

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Keywords: marketing ;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Els Breugelmans & Katia Campo & Els Gijsbrechts, 2007. "Shelf sequence and proximity effects on online grocery choices," Marketing Letters, Springer, vol. 18(1), pages 117-133, June. [Downloadable!] (restricted)
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  2. Chandon, Jean Louis & Chtourou, Mohamed Saber & Fortin, David R., 2003. "Effects of Configuration and Exposure Levels on Responses to Web Advertisements," Journal of Advertising Research, Cambridge University Press, vol. 43(02), pages 217-229, June. [Downloadable!]
  3. Breugelmans E. & Campo K. & Gijsbrechts E., 2005. "Opportunities for active stock-out management in online stores: The impact of the stock-out policy on online stock-out reactions," Working Papers 2005005, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
  4. Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. " Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 17(1), pages 74-81, June.
  5. Pieters, Rik G M & Bijmolt, Tammo H A, 1997. " Consumer Memory for Television Advertising: A Field Study of Duration, Serial Position, and Competition Effects," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 23(4), pages 362-72, March.
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