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Measuring the impact of alcohol multi-buy promotions on consumers' purchase behaviour

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  • Lu, Hui
  • Hess, Stephane
  • Daly, Andrew
  • Rohr, Charlene

Abstract

The objective of this study was to understand the impact of alcohol multi-buy promotions on individual's purchasing behaviour. Our study deployed a Stated Preference survey to measure consumers' potential responses towards price changes and the introduction of promotions, as well as the resulting effects on demand. A series of econometric models were developed, ranging from simple selection models to advanced multiple discrete-continuous extreme value (MDCEV) models, to capture the discrete and continuous feature of alcohol purchasing choice behaviour. The model results were compared and then extrapolated to a series of policy scenario tests, to enable the evaluation of factors that underpin consumers' alcohol purchasing behaviour. This research contributes to evidence on the role of multi-buy promotions on alcohol purchasing behaviour, as well as adding to recent developments in the choice modelling literature by providing a comparison of results across a range of different model structures suitable for the analysis of data such as used here.

Suggested Citation

  • Lu, Hui & Hess, Stephane & Daly, Andrew & Rohr, Charlene, 2017. "Measuring the impact of alcohol multi-buy promotions on consumers' purchase behaviour," Journal of choice modelling, Elsevier, vol. 24(C), pages 75-95.
  • Handle: RePEc:eee:eejocm:v:24:y:2017:i:c:p:75-95
    DOI: 10.1016/j.jocm.2016.05.001
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    References listed on IDEAS

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    1. repec:eee:transb:v:110:y:2018:i:c:p:261-279 is not listed on IDEAS
    2. repec:spr:busres:v:12:y:2019:i:1:d:10.1007_s40685-018-0072-4 is not listed on IDEAS
    3. repec:eee:energy:v:169:y:2019:i:c:p:1132-1138 is not listed on IDEAS

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    Keywords

    Alcohol consumption; Discrete continuous; MDCEV;

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