IDEAS home Printed from https://ideas.repec.org/a/eee/eejocm/v24y2017icp75-95.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1755534516300409
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jocm.2016.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    3. Gallet, Craig A. & List, John A., 1998. "Elasticities of beer demand revisited," Economics Letters, Elsevier, vol. 61(1), pages 67-71, October.
    4. Ipek Sener & Chandra Bhat, 2012. "Modeling the spatial and temporal dimensions of recreational activity participation with a focus on physical activities," Transportation, Springer, vol. 39(3), pages 627-656, May.
    5. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    6. Bhat, Chandra R. & Sen, Sudeshna & Eluru, Naveen, 2009. "The impact of demographics, built environment attributes, vehicle characteristics, and gasoline prices on household vehicle holdings and use," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 1-18, January.
    7. Pinjari, Abdul Rawoof & Bhat, Chandra, 2010. "A multiple discrete-continuous nested extreme value (MDCNEV) model: Formulation and application to non-worker activity time-use and timing behavior on weekdays," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 562-583, May.
    8. Richard T. Carson & Yixiao Sun, 2007. "The Tobit model with a non-zero threshold," Econometrics Journal, Royal Economic Society, vol. 10(3), pages 488-502, November.
    9. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
    10. Patrick Puhani, 2000. "The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    11. Bernardo, Christina & Paleti, Rajesh & Hoklas, Megan & Bhat, Chandra, 2015. "An empirical investigation into the time-use and activity patterns of dual-earner couples with and without young children," Transportation Research Part A: Policy and Practice, Elsevier, vol. 76(C), pages 71-91.
    12. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
    13. Yu, Biying & Zhang, Junyi & Fujiwara, Akimasa, 2011. "Representing in-home and out-of-home energy consumption behavior in Beijing," Energy Policy, Elsevier, vol. 39(7), pages 4168-4177, July.
    14. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    15. Andrew Daly, 2014. "Forecasting choice," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 25, pages 627-646, Edward Elgar Publishing.
    16. Jon Nelson, 2003. "Advertising Bans, Monopoly, and Alcohol Demand: Testing for Substitution Effects using State Panel Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 1-25, February.
    17. Pinjari, Abdul Rawoof, 2011. "Generalized extreme value (GEV)-based error structures for multiple discrete-continuous choice models," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 474-489, March.
    18. Steven T. Yen & Helen H. Jensen, 1995. "Determinants of Household Expenditures on Alcohol," Center for Agricultural and Rural Development (CARD) Publications 95-wp144, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    19. Chandra Bhat & Abdul Pinjari, 2014. "Multiple discrete-continuous choice models: a reflective analysis and a prospective view," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 19, pages 427-454, Edward Elgar Publishing.
    20. Castro, Marisol & Bhat, Chandra R. & Pendyala, Ram M. & Jara-Díaz, Sergio R., 2012. "Accommodating multiple constraints in the multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 729-743.
    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. Bhat, Chandra R. & Mondal, Aupal & Asmussen, Katherine E. & Bhat, Aarti C., 2020. "A multiple discrete extreme value choice model with grouped consumption data and unobserved budgets," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 196-222.
    2. Tapia, Rodrigo J. & de Jong, Gerard & Larranaga, Ana M. & Bettella Cybis, Helena B., 2020. "Application of MDCEV to infrastructure planning in regional freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 255-271.
    3. Bhat, Chandra R., 2018. "A new flexible multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 261-279.
    4. Joseph F. Hair & Christian M. Ringle & Siegfried P. Gudergan & Andreas Fischer & Christian Nitzl & Con Menictas, 2019. "Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 115-142, April.
    5. Palma, David & Hess, Stephane, 2022. "Extending the Multiple Discrete Continuous (MDC) modelling framework to consider complementarity, substitution, and an unobserved budget," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 13-35.
    6. Acharya, Bikram & Marhold, Klaus, 2019. "Determinants of household energy use and fuel switching behavior in Nepal," Energy, Elsevier, vol. 169(C), pages 1132-1138.
    7. Calastri, Chiara & Giergiczny, Marek & Zedrosser, Andreas & Hess, Stephane, 2023. "Modelling activity patterns of wild animals - An application of the multiple discrete-continuous extreme value (MDCEV) model," Journal of choice modelling, Elsevier, vol. 47(C).
    8. Rodrigo J. Tapia & Gerard Jong & Ana M. Larranaga & Helena B. Bettella Cybis, 2021. "Exploring Multiple‐discreteness in Freight Transport. A Multiple Discrete Extreme Value Model Application for Grain Consolidators in Argentina," Networks and Spatial Economics, Springer, vol. 21(3), pages 581-608, September.
    9. Carson, Richard T. & Eagle, Thomas C. & Islam, Towhidul & Louviere, Jordan J., 2022. "Volumetric choice experiments (VCEs)," Journal of choice modelling, Elsevier, vol. 42(C).
    10. Giulio Mattioli & Craig Morton & Joachim Scheiner, 2021. "Air Travel and Urbanity: The Role of Migration, Social Networks, Airport Accessibility, and ‘Rebound’," Urban Planning, Cogitatio Press, vol. 6(2), pages 232-245.
    11. Chung, Yi-Shih & Lu, Kuan-Hung, 2020. "Investigating passenger behavior in airport terminals with multisource data: Recall bias and time budget effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 410-429.
    12. Guoqiang Wu & Jinhyun Hong & Piyushimita Thakuriah, 2022. "Investigating the temporal changes in the relationships between time spent on the internet and non-mandatory activity-travel time use," Transportation, Springer, vol. 49(1), pages 213-235, February.

    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. Sikder, Sujan & Pinjari, Abdul Rawoof, 2013. "The benefits of allowing heteroscedastic stochastic distributions in multiple discrete-continuous choice models," Journal of choice modelling, Elsevier, vol. 9(C), pages 39-56.
    2. Saxena, Shobhit & Pinjari, Abdul Rawoof & Paleti, Rajesh, 2022. "A multiple discrete-continuous extreme value model with ordered preferences (MDCEV-OP): Modelling framework for episode-level activity participation and time-use analysis," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 259-283.
    3. Pinjari, Abdul Rawoof & Bhat, Chandra, 2021. "Computationally efficient forecasting procedures for Kuhn-Tucker consumer demand model systems: Application to residential energy consumption analysis," Journal of choice modelling, Elsevier, vol. 39(C).
    4. Jian, Sisi & Rashidi, Taha Hossein & Dixit, Vinayak, 2017. "An analysis of carsharing vehicle choice and utilization patterns using multiple discrete-continuous extreme value (MDCEV) models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 362-376.
    5. Pinjari, Abdul Rawoof & Augustin, Bertho & Sivaraman, Vijayaraghavan & Faghih Imani, Ahmadreza & Eluru, Naveen & Pendyala, Ram M., 2016. "Stochastic frontier estimation of budgets for Kuhn–Tucker demand systems: Application to activity time-use analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 117-133.
    6. Bhat, Chandra R., 2018. "A new flexible multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 261-279.
    7. Calastri, Chiara & Hess, Stephane & Daly, Andrew & Carrasco, Juan Antonio, 2017. "Does the social context help with understanding and predicting the choice of activity type and duration? An application of the Multiple Discrete-Continuous Nested Extreme Value model to activity diary," Transportation Research Part A: Policy and Practice, Elsevier, vol. 104(C), pages 1-20.
    8. Chandra R. Bhat & Subodh K. Dubey & Mohammad Jobair Bin Alam & Waleed H. Khushefati, 2015. "A New Spatial Multiple Discrete-Continuous Modeling Approach To Land Use Change Analysis," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 801-841, November.
    9. Andrea Pellegrini & Igor Sarman & Rico Maggi, 2021. "Understanding tourists’ expenditure patterns: a stochastic frontier approach within the framework of multiple discrete–continuous choices," Transportation, Springer, vol. 48(2), pages 931-951, April.
    10. Hanemann, Michael & Labandeira, Xavier & Labeaga, José M. & Vásquez-Lavín, Felipe, 2024. "Discrete-continuous models of residential energy demand: A comprehensive review," Resource and Energy Economics, Elsevier, vol. 77(C).
    11. Chandra Bhat & Abdul Pinjari, 2014. "Multiple discrete-continuous choice models: a reflective analysis and a prospective view," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 19, pages 427-454, Edward Elgar Publishing.
    12. Pellegrini, Andrea & Pinjari, Abdul Rawoof & Maggi, Rico, 2021. "A multiple discrete continuous model of time use that accommodates non-additively separable utility functions along with time and monetary budget constraints," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 37-53.
    13. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, July.
    14. Zhao, Shangwei & Xie, Tian & Ai, Xin & Yang, Guangren & Zhang, Xinyu, 2023. "Correcting sample selection bias with model averaging for consumer demand forecasting," Economic Modelling, Elsevier, vol. 123(C).
    15. Goic, Marcel & Rojas, Andrea & Saavedra, Ignacio, 2021. "The Effectiveness of Triggered Email Marketing in Addressing Browse Abandonments," Journal of Interactive Marketing, Elsevier, vol. 55(C), pages 118-145.
    16. Li, Phillip, 2011. "Estimation of sample selection models with two selection mechanisms," Computational Statistics & Data Analysis, Elsevier, vol. 55(2), pages 1099-1108, February.
    17. Calastri, Chiara & Giergiczny, Marek & Zedrosser, Andreas & Hess, Stephane, 2023. "Modelling activity patterns of wild animals - An application of the multiple discrete-continuous extreme value (MDCEV) model," Journal of choice modelling, Elsevier, vol. 47(C).
    18. Kossova, Elena & Potanin, Bogdan, 2018. "Heckman method and switching regression model multivariate generalization," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 50, pages 114-143.
    19. Bhat, Chandra R. & Mondal, Aupal & Asmussen, Katherine E. & Bhat, Aarti C., 2020. "A multiple discrete extreme value choice model with grouped consumption data and unobserved budgets," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 196-222.
    20. Yu, Biying & Zhang, Junyi & Fujiwara, Akimasa, 2011. "Representing in-home and out-of-home energy consumption behavior in Beijing," Energy Policy, Elsevier, vol. 39(7), pages 4168-4177, July.

    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:eee:eejocm:v:24:y:2017:i:c:p:75-95. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-choice-modelling .

    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.