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

ABSTRACT

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.

KEYWORDS:

• One-to-one marketing
• personalization
• personalized price promotion
• food marketing
• enable cluster

Additional information

Funding

This work was supported by the German Ministry for Education and Research (BMBF) [FK01EA1409D].