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A Taxonomy of Consumer Purchase Strategies in a Promotion Intensive Environment

Author

Listed:
  • Imran S. Currim

    (University of California, Irvine)

  • Linda G. Schneider

    (Dartmouth College)

Abstract

This paper proposes a taxonomy of consumer purchase strategies based on household decisions about which brand to purchase, how much, and when to purchase in a promotion intensive environment. We infer decision rules at the household level from supermarket scanner panel data and then cluster the inferred choice routes in order to discover the major purchasing strategies used in our population of interest. Subsequently, we test for the distribution of these purchase strategies in our customer population. Results add to our knowledge of consumer behavior in response to promotions.

Suggested Citation

  • Imran S. Currim & Linda G. Schneider, 1991. "A Taxonomy of Consumer Purchase Strategies in a Promotion Intensive Environment," Marketing Science, INFORMS, vol. 10(2), pages 91-110.
    • Handle: RePEc:inm:ormksc:v:10:y:1991:i:2:p:91-110
    DOI: 10.1287/mksc.10.2.91
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    Cited by:

    1. Khouja, Moutaz & Subramaniam, Chandra & Vasudev, Vinay, 2020. "A comparative analysis of marketing promotions and implications for data analytics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 151-174.
    2. Moutaz Khouja & Jing Zhou, 2016. "The effect of a temporary product distribution channel on supply chain performance," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(7), pages 505-528, October.
    3. G. Schneider, Linda & Selling, Thomas I., 1996. "A comparison of compensatory and noncompensatory models of judgment: Effects of task predictability and degrees of freedom," Accounting, Organizations and Society, Elsevier, vol. 21(1), pages 3-22, January.
    4. Marjorie Cooper & Chris Pullig, 2013. "I’m Number One! Does Narcissism Impair Ethical Judgment Even for the Highly Religious?," Journal of Business Ethics, Springer, vol. 112(1), pages 167-176, January.
    5. Igal Hendel & Aviv Nevo, 2006. "Measuring the Implications of Sales and Consumer Inventory Behavior," Econometrica, Econometric Society, vol. 74(6), pages 1637-1673, November.
    6. Anna Lu, 2017. "Consumer Stockpiling and Sales Promotions," Discussion Papers of DIW Berlin 1680, DIW Berlin, German Institute for Economic Research.
    7. Roy, Abhik, 1998. "An error components approach to segmentation and modelling brand choice dynamics," Journal of Economic Psychology, Elsevier, vol. 19(4), pages 463-484, August.
    8. Jorge M. Silva-Risso & Randolph E. Bucklin & Donald G. Morrison, 1999. "A Decision Support System for Planning Manufacturers' Sales Promotion Calendars," Marketing Science, INFORMS, vol. 18(3), pages 274-300.

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