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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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    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.
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    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.
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