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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 - Université Paris-Dauphine - 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://halshs.archives-ouvertes.fr/halshs-00164831
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00164831/document
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    References listed on IDEAS

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    Citations

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    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. 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. repec:eee:jouret:v:87:y:2011:i:2:p:166-181 is not listed on IDEAS
    5. 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.
    6. 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.
    7. 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.
    8. repec:eee:joreco:v:21:y:2014:i:6:p:966-975 is not listed on IDEAS
    9. repec:eee:joreco:v:19:y:2012:i:2:p:249-258 is not listed on IDEAS
    10. repec:eee:joreco:v:17:y:2010:i:6:p:478-486 is not listed on IDEAS
    11. repec:eee:joreco:v:28:y:2016:i:c:p:263-273 is not listed on IDEAS
    12. 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.

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