A Systematic Review on the Effects of Personalized Price Promotions for Food Products

Recent decades have witnessed the increasing adoption of personalized price promotion (PPP) at grocery stores. Despite the growing body of research debating whether PPP is more effective than untargeted price promotions, there is no literature synthesizing the relevant evidence on food products. The...

Full description

Saved in:
Bibliographic Details
Published in:Journal of food products marketing 2019-03, Vol.25 (3), p.257-275
Main Authors: Nguyen, Minh Thi Thuy, Emberger-Klein, Agnes, Menrad, Klaus
Format: Article
Language:English
Subjects:
Data collection
Data processing
enable cluster
Food
food marketing
Food production
Food products
One-to-one marketing
personalization
personalized price promotion
Reinforcement
Reviews
Sales promotions
Systematic review
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Recent decades have witnessed the increasing adoption of personalized price promotion (PPP) at grocery stores. Despite the growing body of research debating whether PPP is more effective than untargeted price promotions, there is no literature synthesizing the relevant evidence on food products. Therefore, we conduct a systematic review to examine empirical findings on the effects of PPP targeting food products. Outcomes of 12 identified studies demonstrate larger sales and profit boosting effects of PPP than its non-personalized counterparts. Meanwhile, the results on how this approach influences consumer behavior are mixed. The effectiveness of PPP varies among different targeting strategies (e.g. reward or cross-selling) and information collection methods (e.g. using within- or across-chain data). The findings of this review have important managerial implications for the future evaluation and application of PPP as well as imply potential directions of further research on this topic.
ISSN:1045-4446
1540-4102
DOI:10.1080/10454446.2018.1529647