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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-PSL - PSL - Université Paris Sciences et Lettres - 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.

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  • 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://shs.hal.science/halshs-00164831
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    References listed on IDEAS

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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. 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.
    4. Patalinghug, Jason C., 2013. "The Effect of Advertising and In-Store Promotion on the Demand for Chocolate," Working Paper series 159981, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    5. 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.
    6. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Barrales-Molina, Vanesa, 2014. "Profiling the flyer-prone consumer," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 966-975.
    7. Ligas, Mark & Chaudhuri, Arjun, 2012. "The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price," Journal of Retailing and Consumer Services, Elsevier, vol. 19(2), pages 249-258.
    8. 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.
    9. Gázquez-Abad, Juan Carlos & Canniére, Marie Hélène De & Martínez-López, Francisco J., 2011. "Dynamics of Customer Response to Promotional and Relational Direct Mailings from an Apparel Retailer: The Moderating Role of Relationship Strength," Journal of Retailing, Elsevier, vol. 87(2), pages 166-181.
    10. Woo, Hongjoo & Chung, Angie & Richey, Robert Glenn & Hopkins, Christopher & Lee, Kangbok, 2022. "Product-flyer location and type of product categories in retailing," Journal of Business Research, Elsevier, vol. 138(C), pages 146-160.
    11. Prediger, Maciel & Huertas-Garcia, Rubén & Gázquez-Abad, Juan Carlos, 2019. "Store flyer design and the intentions to visit the store and buy: The moderating role of perceived variety and perceived store image," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 202-211.
    12. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    13. Doucé, Lieve & Willems, Kim & Chaudhuri, Arjun, 2022. "Bargain effectiveness in differentiated store environments: The role of store affect, processing fluency, and store familiarity," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    14. 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.
    15. Mimouni Chaabane, Aîda & Sabri, Ouidade & Parguel, Béatrice, 2010. "Competitive advertising within store flyers: A win–win strategy?," Journal of Retailing and Consumer Services, Elsevier, vol. 17(6), pages 478-486.
    16. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J., 2016. "Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 263-273.
    17. 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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