IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00164831.html
   My bibliography  Save this paper

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

Author

Listed:
  • Pierre Volle

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Pierre Volle, 2001. "The Short-Term Effect of Store-Level Promotions on Store Choice and the Moderating Role of Individual Variables," Post-Print halshs-00164831, HAL.
  • Handle: RePEc:hal:journl:halshs-00164831
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00164831
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00164831/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Punj, Girish N & Stewart, David W, 1983. "An Interaction Framework of Consumer Decision Making," Journal of Consumer Research, Oxford University Press, vol. 10(2), pages 181-196, September.
    2. R. Blattberg & R. Briesch & E. Fox, 1994. "Les questions en suspens dans le domaine de la promotion des ventes," Post-Print hal-02016494, HAL.
    3. 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.
    4. Bruce G. S. Hardie & Eric J. Johnson & Peter S. Fader, 1993. "Modeling Loss Aversion and Reference Dependence Effects on Brand Choice," Marketing Science, INFORMS, vol. 12(4), pages 378-394.
    5. Shimp, Terence A & Kavas, Alican, 1984. "The Theory of Reasoned Action Applied to Coupon Usage," Journal of Consumer Research, Oxford University Press, vol. 11(3), pages 795-809, December.
    6. Ghosh, Avijit, 1984. "Parameter nonstationarity in retail choice models," Journal of Business Research, Elsevier, vol. 12(4), pages 425-436, December.
    7. Jean-Noël Kapferer & Gilles Laurent, 1985. "Measuring consumer involvement profiles," Post-Print hal-00786781, HAL.
    8. Belk, Russell W, 1975. "Situational Variables and Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 2(3), pages 157-164, December.
    9. Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. "Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, Oxford University Press, vol. 17(1), pages 74-81, June.
    10. Hildebrandt, Lutz, 1988. "Store image and the prediction of performance in retailing," Journal of Business Research, Elsevier, vol. 17(1), pages 91-100, August.
    11. Yadav, Manjit S, 1994. "How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment," Journal of Consumer Research, Oxford University Press, vol. 21(2), pages 342-353, September.
    12. 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.
    13. Beatty, Sharon E & Smith, Scott M, 1987. "External Search Effort: An Investigation across Several Product Categories," Journal of Consumer Research, Oxford University Press, vol. 14(1), pages 83-95, June.
    14. A S Fotheringham & R Trew, 1993. "Chain Image and Store-Choice Modeling: The Effects of Income and Race," Environment and Planning A, , vol. 25(2), pages 179-196, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tripathi Sanjeev & Sinha, Piyush Kumar, 2008. "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. Aîda Mimouni & Ouidade Sabri-Zaaraoui & Béatrice Parguel, 2010. "Competitive Advertising Within Store Flyers: A Win-Win Strategy?," Post-Print halshs-00634439, HAL.
    3. Chen, Bo & Saghaian, Sayed, 2017. "Does Consumers’ Preference for Organic Foods Affect Their Store Format Choices?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252827, Southern Agricultural Economics Association.
    4. Patalinghug, Jason C., 2013. "The Effect of Advertising and In-Store Promotion on the Demand for Chocolate," Working Paper series 159981, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    5. Chorus, Caspar & van Cranenburgh, Sander & Dekker, Thijs, 2014. "Random regret minimization for consumer choice modeling: Assessment of empirical evidence," Journal of Business Research, Elsevier, vol. 67(11), pages 2428-2436.
    6. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Barrales-Molina, Vanesa, 2014. "Profiling the flyer-prone consumer," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 966-975.
    7. Ligas, Mark & Chaudhuri, Arjun, 2012. "The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price," Journal of Retailing and Consumer Services, Elsevier, vol. 19(2), pages 249-258.
    8. 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.
    9. Gázquez-Abad, Juan Carlos & Canniére, Marie Hélène De & Martínez-López, Francisco J., 2011. "Dynamics of Customer Response to Promotional and Relational Direct Mailings from an Apparel Retailer: The Moderating Role of Relationship Strength," Journal of Retailing, Elsevier, vol. 87(2), pages 166-181.
    10. Woo, Hongjoo & Chung, Angie & Richey, Robert Glenn & Hopkins, Christopher & Lee, Kangbok, 2022. "Product-flyer location and type of product categories in retailing," Journal of Business Research, Elsevier, vol. 138(C), pages 146-160.
    11. Prediger, Maciel & Huertas-Garcia, Rubén & Gázquez-Abad, Juan Carlos, 2019. "Store flyer design and the intentions to visit the store and buy: The moderating role of perceived variety and perceived store image," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 202-211.
    12. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    13. Doucé, Lieve & Willems, Kim & Chaudhuri, Arjun, 2022. "Bargain effectiveness in differentiated store environments: The role of store affect, processing fluency, and store familiarity," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    14. 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.
    15. Mimouni Chaabane, Aîda & Sabri, Ouidade & Parguel, Béatrice, 2010. "Competitive advertising within store flyers: A win–win strategy?," Journal of Retailing and Consumer Services, Elsevier, vol. 17(6), pages 478-486.
    16. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J., 2016. "Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 263-273.
    17. Guyt, Jonne, 2015. "Consumer choice models on the effect of promotions in retailing," Other publications TiSEM c310f652-d725-4764-aac7-b, Tilburg University, School of Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Volle, Pierre, 2001. "The short-term effect of store-level promotions on store choice, and the moderating role of individual variables," Journal of Business Research, Elsevier, vol. 53(2), pages 63-73, August.
    2. Murthi, B.P.S. & Rao, Ram C., 2012. "Price Awareness and Consumers’ Use of Deals in Brand Choice," Journal of Retailing, Elsevier, vol. 88(1), pages 34-46.
    3. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    4. Bauer, Johannes C. & Kotouc, Alexander J. & Rudolph, Thomas, 2012. "What constitutes a “good assortment†? A scale for measuring consumers' perceptions of an assortment offered in a grocery category," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 11-26.
    5. Ravula, Prashanth & Bhatnagar, Amit & Ghose, Sanjoy, 2020. "Antecedents and consequences of cross-effects: An empirical analysis of omni-coupons," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 405-420.
    6. Alden, Dana L. & He, Yi & Chen, Qimei, 2010. "Service recommendations and customer evaluations in the international marketplace: Cultural and situational contingencies," Journal of Business Research, Elsevier, vol. 63(1), pages 38-44, January.
    7. Benjamin Polak & Rupert Stadler & Mark Heitmann & Andreas Herrmann & Marc Cäsar & Jan Landwehr, 2010. "Aufpreise oder Gesamtpreise? Wirkung der Preisdarstellung auf das individuelle Entscheidungsverhalten," Schmalenbach Journal of Business Research, Springer, vol. 62(8), pages 911-932, December.
    8. Gaia Rubera & Andrea Ordanini & David Mazursky, 2010. "Toward a contingency view of new product creativity: Assessing the interactive effects of consumers," Marketing Letters, Springer, vol. 21(2), pages 191-206, June.
    9. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    10. Eimers, M.Y. & Pieters, R. & Verhallen, T.M.M., 1996. "Product evaluation as a function of consumer type and usage situation," Other publications TiSEM d94fd2d8-0785-4a8f-8fb1-2, Tilburg University, School of Economics and Management.
    11. Pedro Quelhas Brito & Peter J. McGoldrick & Umesh Ramchandra Raut, 2019. "Shopping Centre Patronage: Situational Factors Against Affect," Vision, , vol. 23(2), pages 189-196, June.
    12. Elshiewy, Ossama & Peschel, Anne O., 2022. "Internal reference price response across store formats," Journal of Retailing, Elsevier, vol. 98(3), pages 496-509.
    13. Gabriele Pizzi & Gian Luca Marzocchi, 2020. "Consumer-defined assortments: application of card-sorting to category management," Italian Journal of Marketing, Springer, vol. 2020(1), pages 67-84, March.
    14. Heribert Gierl & Roland Helm & Stefan Stumpp, 2001. "Wertfunktion der Prospect-Theorie, Produktpräferenzen und Folgerungen für das Marketing," Schmalenbach Journal of Business Research, Springer, vol. 53(6), pages 559-588, September.
    15. Heribert Gierl & Hans Höser, 2002. "Der Reihenfolgeeffekt auf Präferenzen," Schmalenbach Journal of Business Research, Springer, vol. 54(1), pages 3-18, February.
    16. Sanjay Kumar Mishra & Manoj Kumar, 2012. "A comprehensive model of information search and processing behaviour of mutual fund investors," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 17(1), pages 31-49, April.
    17. J. Miguel Villas-Boas & Russell S. Winer, 1999. "Endogeneity in Brand Choice Models," Management Science, INFORMS, vol. 45(10), pages 1324-1338, October.
    18. Little, John D. C. & Anderson, Eric T., 1994. "A product choice model with marketing, filtering and purchase feedback," Working papers 3670-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    19. Ouesleti, Bilel & Costa-Font, Montserrat & Kallas, Zein & Chema Gil, Jose Maria, 2015. "Determinant Factors Affecting The Point of Purchase Selection: valuation and Perceptions," 2015 Conference, August 9-14, 2015, Milan, Italy 212603, International Association of Agricultural Economists.
    20. David R. Bell & James M. Lattin, 2000. "Looking for Loss Aversion in Scanner Panel Data: The Confounding Effect of Price Response Heterogeneity," Marketing Science, INFORMS, vol. 19(2), pages 185-200, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00164831. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.