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The Short-Term Effect of Store-Level Promotions on Store Choice and the Moderating Role of Individual Variables

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  • Pierre Volle

    ()
    (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)

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    Abstract

    The short-term effect of store-level promotions (weekly flyers, radio and outdoor advertising) on grocery store choice is investigated. We estimate household-level multinomial logit models of store choice on panel data, using promotional variables, loyalty and psychographic moderating variables. The research shows that the short-term effect of store-level promotions on store choice is significant but weak: store choice is mainly driven by loyalty. While we fail to demonstrate the moderating role of psychographic variables (involvement toward shopping, attitude toward the purchase of products on promotion, search for promotional information), however, the quasi-moderating role of loyalty is clearly validated. From a managerial point of view, adapting store-level promotions to individual characteristics does not seem to be relevant. Nevertheless, further research should be conducted in order to take into account the potential interactive effects of individual variables in a more systematic way, for example though a latent class analysis.

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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00164831.

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    Date of creation: 01 Jan 2001
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    Publication status: Published, Journal of Business Research, 2001, 62-75
    Handle: RePEc:hal:journl:halshs-00164831

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00164831/en/
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    Related research

    Keywords: store choice; store patronage; store promotions; retailing; marketing;

    References

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    1. Shimp, Terence A & Kavas, Alican, 1984. " The Theory of Reasoned Action Applied to Coupon Usage," Journal of Consumer Research, University of Chicago Press, vol. 11(3), pages 795-809, December.
    2. Hildebrandt, Lutz, 1988. "Store image and the prediction of performance in retailing," Journal of Business Research, Elsevier, vol. 17(1), pages 91-100, August.
    3. Mazumdar, Tridib & Jun, Sung Youl, 1993. " Consumer Evaluations of Multiple versus Single Price Change," Journal of Consumer Research, University of Chicago Press, vol. 20(3), pages 441-50, December.
    4. Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. " Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, University of Chicago Press, vol. 17(1), pages 74-81, June.
    5. Punj, Girish N & Stewart, David W, 1983. " An Interaction Framework of Consumer Decision Making," Journal of Consumer Research, University of Chicago Press, vol. 10(2), pages 181-96, September.
    6. Belk, Russell W, 1975. " Situational Variables and Consumer Behavior," Journal of Consumer Research, University of Chicago Press, vol. 2(3), pages 157-64, December.
    7. Yadav, Manjit S, 1994. " How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment," Journal of Consumer Research, University of Chicago Press, vol. 21(2), pages 342-53, September.
    8. Füsun Gönül & Kannan Srinivasan, 1993. "Modeling Multiple Sources of Heterogeneity in Multinomial Logit Models: Methodological and Managerial Issues," Marketing Science, INFORMS, vol. 12(3), pages 213-229.
    9. 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.
    10. Ghosh, Avijit, 1984. "Parameter nonstationarity in retail choice models," Journal of Business Research, Elsevier, vol. 12(4), pages 425-436, December.
    11. Beatty, Sharon E & Smith, Scott M, 1987. " External Search Effort: An Investigation across Several Product Categories," Journal of Consumer Research, University of Chicago Press, vol. 14(1), pages 83-95, June.
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    Cited by:
    1. Tripathi Sanjeev & Sinha, Piyush Kumar, . "Choice of a Retail Store and Retail Store Format: A Hierarchical Logit Model," IIMA Working Papers WP2008-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. De Cannière, Marie Hélène & De Pelsmacker, Patrick & Geuens, Maggie, 2009. "Relationship Quality and the Theory of Planned Behavior models of behavioral intentions and purchase behavior," Journal of Business Research, Elsevier, vol. 62(1), pages 82-92, January.
    3. van Raaij, W. Fred & Strazzieri, Alain & Woodside, Arch, 2001. "New developments in marketing communications and consumer behavior," Journal of Business Research, Elsevier, vol. 53(2), pages 59-61, August.
    4. Aîda Mimouni & Ouidade Sabri-Zaaraoui & Béatrice Parguel, 2010. "Competitive Advertising Within Store Flyers: A Win-Win Strategy?," Post-Print halshs-00634439, HAL.

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