How does a product market's typical price-promotion pattern

The study explores conditions in the retail promotional environment that may impact purchase acceleration. The impact on purchase acceleration of the deal frequency, the mean magnitude of the deal incentive, and the variability around the regular price and the promotional price cut, respectively, ar...

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Bibliographic Details
Published in:Journal of retailing 1992-10, Vol.68 (3), p.316
Main Authors: Helsen, Kristiaan, Schmittlein, David C
Format: Article
Language:English
Subjects:
Buying
Coffee
Consumer behavior
Consumer goods
Consumers
Consumption
Correlation analysis
Households
Inventory
Price cuts
Purchasing
Retail stores
Sales promotions
Studies
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Summary:The study explores conditions in the retail promotional environment that may impact purchase acceleration. The impact on purchase acceleration of the deal frequency, the mean magnitude of the deal incentive, and the variability around the regular price and the promotional price cut, respectively, are explored. The study uses UPC scanner data across distinct project categories. The households in the database belong to A. C. Nielsen's ERIM scanner panel with about 2,000 households each. The empirical results show that in most cases promotional price cuts lead to purchase acceleration. Inspection of the coefficients revealed that high deal frequencies are correlated with strong price sensitivities. A 2nd result revealed that the higher the mean depth-of-discount magnitude, the more forward buying. Findings also showed that high regular price variabilities relate to increased price responsiveness of purchase timing decisions.
ISSN:0022-4359
1873-3271