Characterising the deal-proneness of consumers by analysis of price sensitivity and brand loyalty: an analysis in the retail environment

References

• Aiken , L. and West , S. 1991 . Multiple regression , Newbury Park, CA : Sage .
   Google Scholar
• Ailawadi , K. , Neslin , S. and Gedenk , K. 2001 . Pursuing the value-conscious consumer: store brands vs. national brand promotions . Journal of Marketing , 65 ( January ) : 71 – 89 .
   Google Scholar
• Ainslie , A. and Rossi , P. 1998 . Similarities in choice behavior across product categories . Marketing Science , 17 : 91 – 106 .
   Web of Science ®Google Scholar
• Andrews , R. and Currim , I. 2003a . A comparison of segment retention criteria for finite mixture logit models . Journal of Marketing Research , 40 ( May ) : 235 – 243 .
   Google Scholar
• Andrews , R. and Currim , I. 2003b . Recovering and profiling the true segmentation structure in markets: an empirical investigation . International Journal of Research in Marketing , 20 ( June ) : 177 – 192 .
   Google Scholar
• Babakus , E. , Tat , P. and Cunningham , W. 1988 . Coupon redemption: a motivation perspective . Journal of Consumer Marketing , 5 ( 2 ) : 37 – 44 .
   Google Scholar
• Bawa , K. and Shoemaker , R. 1987 . The coupon-prone consumer: some findings based on purchase behaviour across product classes . Journal of Marketing , 51 ( October ) : 99 – 110 .
   Google Scholar
• Bemmaor , A. and Mouchoux , D. 1991 . Measuring the short-term effect of in-store promotion and retail advertising on brand sales: a factorial experiment . Journal of Marketing Research , 28 ( May ) : 202 – 214 .
   Web of Science ®Google Scholar
• Bjerre , M. 2003 . Circulars – a media of its own or? Working Paper 8 Centre for Marketing Communication, Institut for Afsaetning, Copenhagen Business School. http://ir.lib.cbs.dk/ download/ISBN/x645152012.pdf
   Google Scholar
• Blattberg , R. , Buesing , T. , Peacock , P. and Sen , S. 1978 . Identifying the deal-prone segment . Journal of Marketing Research , 15 : 369 – 377 .
   Web of Science ®Google Scholar
• Blattberg , R. and Neslin , S. 1990 . Sales promotion: concepts, methods and strategies , Englewood Cliffs, NJ : Prentice Hall .
   Google Scholar
• Blattberg , R. and Wisniewski , K. 1989 . Price induced patterns of competition . Marketing Science , 8 ( 4 ) : 291 – 309 .
   Web of Science ®Google Scholar
• Bozdogan , H. 1987 . Model selection and Akaike's information criterion (AIC): the general theory and its analytical extensions . Psychometrika , 52 ( 3 ) : 345 – 370 .
   Web of Science ®Google Scholar
• Bronnenberg , B. , Dhar , S. and Dubé , J. P. 2005 . Consumer packaged goods in the United States: national brands, local branding Working Paper. UCLA
   Google Scholar
• Brown , R. 1974 . Sales response to promotions and advertising . Journal of Advertising Research , 14 ( 4 ) : 33 – 39 .
   Web of Science ®Google Scholar
• Bucklin , R. and Gupta , S. 1992 . Brand choice, purchase incidence and segmentation: an integrated modelling approach . Journal of Marketing Research , 24 ( May ) : 201 – 215 .
   Google Scholar
• Bucklin , R. , Gupta , S. and Siddarth , S. 1998 . Determining segmentation in sales response across consumer purchase behaviors . Journal of Marketing Research , 35 ( May ) : 189 – 197 .
   Google Scholar
• Burton , S. , Lichtenstein , D. and Netemeyer , R. 1999 . Exposure to sales flyers and increased purchases in retail supermarkets . Journal of Advertising Research , 39 ( 5 ) : 7 – 14 .
   Web of Science ®Google Scholar
• Carpenter , J. and Moore , M. 2008 . US consumers' perceptions of non-price retail promotions . International Journal of Retail and Distribution Management , 36 ( 2 ) : 111 – 123 .
   Google Scholar
• Chandon , P. , Wansink , B. and Laurent , G. 2000 . A benefit congruency framework of sales promotion effectiveness . Journal of Marketing , 64 ( October ) : 65 – 81 .
   Web of Science ®Google Scholar
• Chen , S. , Monroe , K. and Lou , Y. 1998 . The effects of framing price promotion messages on consumers' perceptions and purchase intentions . Journal of Retailing , 74 ( 3 ) : 353 – 372 .
   Web of Science ®Google Scholar
• Chintagunta , P. 2001 . Endogeneity and heterogeneity in a probit demand model: estimation using aggregate data . Marketing Science , 20 ( 4 ) : 442 – 456 .
   Google Scholar
• Chintagunta , P. , Jain , D. and Vilcassim , N. 1991 . Investigating heterogeneity in brand preferences in logit models for panel data . Journal of Marketing Research , 18 ( November ) : 417 – 428 .
   Google Scholar
• Currim , L. and Schneider , L. 1991 . A taxonomy of consumer purchase strategies in a promotion intensive environment . Marketing Science , 10 ( 2 ) : 91 – 110 .
   Web of Science ®Google Scholar
• Della Bitta , A. and Monroe , K. 1980 . “ A multivariate analysis of the perception of value from retail price advertisements ” . In Advances in consumer research , Edited by: Monroe , K. B. 161 – 165 . Ann Arbor, MI : Association for Consumer Research .
   Google Scholar
• DelVecchio , D. 2005 . Deal-prone consumers' response to promotion: the effects of relative and absolute promotion value . Psychology and Marketing , 22 ( 5 ) : 373 – 391 .
   Web of Science ®Google Scholar
• Dickson , P. and Sawyer , A. 1990 . The price knowledge and search of supermarket shoppers . Journal of Marketing , 54 : 42 – 53 .
   Web of Science ®Google Scholar
• Dillon , W. and Gupta , S. 1996 . A segment-level model of category volume and brand choice . Marketing Science , 15 ( 1 ) : 38 – 59 .
   Google Scholar
• Dodson , J. , Tybout , A. and Sternthal , B. 1978 . Impact of deals and deal retraction on brand switching . Journal of Marketing Research , 16 ( February ) : 64 – 73 .
   Google Scholar
• Erdem , T. , Imai , S. and Keane , M. 2003 . Brand and quantity choice dynamics under price uncertainty . Quantitative Marketing and Economics , 1 : 5 – 64 .
   Google Scholar
• Froloff-Brouche , L. 1994 . L'influence de la promotion des ventes sur le consommateur: un essai de conceptualisation . Recherche et Applications en Marketing , 9 ( 3 ) : 45 – 62 .
   Google Scholar
• Gedenk , K. and Neslin , S. 1999 . The role of retail promotion in determining future brand loyalty: its effect on purchase event feedback . Journal of Retailing , : 433 – 459 .
   Google Scholar
• Gijsbrechts , E. , Campo , K. and Goossens , T. 2003 . The impact of store flyers on store traffic and store sales: a geo-marketing approach . Journal of Retailing , 79 : 1 – 16 .
   Web of Science ®Google Scholar
• Grover , R. and Srinivasan , V. 1992 . Evaluating the multiple effect of retail promotions on brand loyal and brand switching segments . Journal of Marketing Research , 29 : 76 – 89 .
   Web of Science ®Google Scholar
• Guadagni , P. and Little , J. 1983 . A logit model of brand choice calibrated on scanner data . Marketing Science , 2 ( 3 ) : 203 – 238 .
   Google Scholar
• Gupta , S. 1988 . Impact of sales promotions on when, what and how much to buy . Journal of Marketing Research , 25 ( November ) : 342 – 355 .
   Google Scholar
• Hackleman , C. and Duker , J. 1980 . Deal-proneness and heavy usage: merging two segmentation criteria . Journal of the Academy of Marketing Science , 8 ( Fall ) : 332 – 344 .
   Google Scholar
• Han , S. , Gupta , S. and Lehmann , D. 2001 . Consumer price sensitivity and price thresholds . Journal of Retailing , 77 : 435 – 456 .
   Web of Science ®Google Scholar
• Hannan , E. and Quinn , B. 1979 . The determination of the order of an autoregression . Journal of the Royal Statistical Society , 41 : 190 – 195 .
   Google Scholar
• Henderson , C. 1987 . Sales promotion segmentation: refining the deal-proneness construct Working Paper. The Amos Tuck School of Business Administration. Dartmouth College, Hanover, NH
   Google Scholar
• Henderson , C. 1994 . Promotion heterogeneity and consumer learning: refining the deal-proneness construct . Advances in Consumer Research , 21 ( 1 ) : 86 – 94 .
   Google Scholar
• Hofstede , F. , Steenkamp , J. B. and Wedel , M. 1999 . International market segmentation based on consumer–product relations . Journal of Marketing Research , 36 ( February ) : 1 – 17 .
   Google Scholar
• Honea , H. and Dahl , D. 2005 . The promotion affect scale: defining the affective dimensions of promotion . Journal of Business Research , 58 ( 3 ) : 543 – 551 .
   Google Scholar
• IRI . 2006 . Information Resources Inc. http://www.infores.com
   Google Scholar
• Kamakura , W. and Russell , G. 1989 . A probabilistic choice model for market segmentation and elasticity structure . Journal of Marketing Research , 26 ( November ) : 379 – 390 .
   Google Scholar
• Kannan , P. and Yim , C. 2001 . An investigation of the impact of promotions on across-submarket competition . Journal of Business Research , 53 : 137 – 149 .
   Google Scholar
• Kim , B. , Srinivasan , K. and Wilcox , R. 1999 . Identifying price-sensitive consumers: the relative merits of demographic vs. purchase pattern information . Journal of Retailing , 75 : 173 – 193 .
   Web of Science ®Google Scholar
• Krishna , A. , Currim , I. and Shoemaker , R. 1991 . Consumer perceptions of promotional activity . Journal of Marketing , 55 : 4 – 16 .
   Web of Science ®Google Scholar
• Krishnamurthi , L. and Papatla , P. 2003 . Accounting for heterogeneity and dynamics in the loyalty–price sensitivity relationship . Journal of Retailing , 79 : 121 – 135 .
   Web of Science ®Google Scholar
• Krishnamurthi , L. and Raj , S. 1988 . A model of brand choice and purchase quantity price sensitivities . Marketing Science , 7 ( Winter ) : 1 – 20 .
   Google Scholar
• Krishnamurthi , L. and Raj , S. 1991 . An empirical analysis of the relationship between brand loyalty and consumer price elasticity . Marketing Science , 10 ( Spring ) : 172 – 183 .
   Google Scholar
• Kumar , S. and Advani , J. 2005 . Factors affecting brand loyalty: a study in an emerging market on fast moving consumer goods . Journal of Customer Behaviour , 4 : 251 – 275 .
   Google Scholar
• Kwon , K-N. and Kwon , Y. 2007 . Demographics in sales promotion proneness: a socio-cultural approach . Advances in Consumer Research , 34 : 288 – 294 .
   Google Scholar
• Laroche , M. , Pons , F. , Zgolli , B. and Kim , C. 2001 . Consumer use of price promotions: a model and its potential moderators . Journal of Retailing and Consumer Services , 8 : 251 – 260 .
   Google Scholar
• Laroche , M. , Pons , F. , Zgolli , B. , Cervellon , M. and Kim , C. 2003 . A model of consumer response to two retail sales promotions techniques . Journal of Business Research , 56 : 513 – 522 .
   Web of Science ®Google Scholar
• Lattin , J. and Bucklin , R. 1989 . Reference effects of price and promotion on brand choice behaviour . Journal of Marketing Research , 26 ( August ) : 299 – 310 .
   Google Scholar
• Lemon , K. and Nowlis , S. 2002 . Developing synergies between promotions and brands in different price–quality tiers . Journal of Marketing Research , 39 ( May ) : 171 – 185 .
   Google Scholar
• Lichtenstein , D. , Burton , S. and Netemeyer , R. 1997 . An examination of deal-proneness across sales promotion types: a consumer segmentation perspective . Journal of Retailing , 73 ( 2 ) : 283 – 297 .
   Web of Science ®Google Scholar
• Lichtenstein , D. , Netemeyer , R. and Burton , S. 1990 . Distinguishing coupon proneness from value consciousness: an acquisition-transaction utility theory perspective . Journal of Marketing , 54 : 54 – 67 .
   Web of Science ®Google Scholar
• Lichtenstein , D. , Netemeyer , R. and Burton , S. 1995 . Assessing the domain specificity of deal-proneness: a field study . Journal of Consumer Research , 22 : 314 – 326 .
   Web of Science ®Google Scholar
• Lichtenstein , D. , Ridgway , N. and Netemeyer , R. 1993 . Price perceptions and consumer shopping behavior: a field study . Journal of Marketing Research , 30 ( May ) : 234 – 245 .
   Web of Science ®Google Scholar
• Lim , J. , Currim , J. and Andrews , R. 2005 . Consumer heterogeneity in the longer-term effects of price promotions . International Journal of Research in Marketing , 22 ( 4 ) : 441 – 457 .
   Web of Science ®Google Scholar
• Lin , C. , Wu , W. and Wang , Z. 2000 . A study of market structure: brand loyalty and brand switching behaviors for durable household appliances . International Journal of Market Research , 42 ( 3 ) : 277 – 300 .
   Google Scholar
• Mankila , M. 2004 . Retaining students in retail banking through price bundling: evidence from the Swedish market . European Journal of Operational Research , 155 : 299 – 316 .
   Google Scholar
• Martínez , E. and Montaner , T. 2006 . The effect of consumer's psychographic variables upon deal-proneness . Journal of Retailing and Consumer Services , 13 : 157 – 168 .
   Google Scholar
• Massy , W. and Frank , R. 1965 . Short term price and dealing effects in selected market segments . Journal of Marketing Research , 2 : 171 – 185 .
   Google Scholar
• Mayhew , G. and Winer , R. 1992 . An empirical analysis of internal and external reference prices using scanner data . Journal of Consumer Research , 19 ( June ) : 62 – 70 .
   Google Scholar
• McAlister , L. 1986 . The impact of price promotions on a brand's market share, sales pattern and profitability Report no. 86–110. Cambridge, MA: Marketing Science Institute
   Google Scholar
• McCann , J. 1974 . Market segment response to the marketing decision variables . Journal of Marketing Research , 11 ( 4 ) : 399 – 412 .
   Web of Science ®Google Scholar
• Mela , C. , Gupta , S. and Lehman , D. 1997 . The long-term impact of promotion and advertising on consumer brand choice . Journal of Marketing Research , 34 ( May ) : 248 – 261 .
   Google Scholar
• Miranda , M. and Kónya , L. 2007 . Directing store flyers to the appropriate audience . Journal of Retailing and Consumer Services , 14 ( 3 ) : 175 – 181 .
   Google Scholar
• Montgomery , D. 1971 . Consumer characteristics associated with dealing . Journal of Marketing Research , 8 : 118 – 120 .
   Web of Science ®Google Scholar
• Mulhern , F. and Leone , R. 1990 . Retail promotional advertising: do the number of deal items and size of deal discounts affect store performance? . Journal of Business Research , 21 : 179 – 194 .
   Web of Science ®Google Scholar
• Narasimhan , C. 1984 . A price discrimination theory of coupons . Management Science , 3 ( Spring ) : 128 – 147 .
   Google Scholar
• Neslin , S. 2002 . Sales promotion , Cambridge, MA : Marketing Science Institute .
   Google Scholar
• Neslin , S. , Henderson , C. and Quelch , J. 1985 . Consumer promotions and the acceleration of product purchases . Marketing Science , 2 ( Spring ) : 147 – 165 .
   Google Scholar
• Niraj , R. , Padmanabhan , V. and Seetharaman , P. 2008 . A cross-category model of households' incidence and quantity decisions . Marketing Science , 27 ( 2 ) : 225 – 235 .
   Google Scholar
• Ortmeyer , G. , Lattin , J. and Montgomery , D. 1991 . Individual differences in response to consumer promotions . International Journal of Research in Marketing , 8 : 169 – 186 .
   Google Scholar
• Palazón , M. and Delgado , E. 2005 . Sales promotion effect on consumer based brand equity . International Journal of Market Research , 47 ( 2 ) : 179 – 204 .
   Google Scholar
• Papatla , P. and Krishnamurthi , L. 1996 . Measuring the dynamic effects of promotions on brand choice . Journal of Marketing Research , 33 ( February ) : 20 – 35 .
   Google Scholar
• Pechtl , H. 2004 . Profiling intrinsic deal-proneness for HILO and EDLP price promotion strategies . Journal of Retailing and Consumer Services , 11 : 223 – 233 .
   Google Scholar
• Pieters , R. , Wedel , M. and Zhang , J. 2007 . Optimal feature advertising design under competitive clutter . Management Science , 53 ( 11 ) : 1815 – 1828 .
   Web of Science ®Google Scholar
• Price , L. , Feick , L. and Guskey-Federouch , A. 1988 . Couponing behaviors of the market maven: profile of a super couponer . Advances in Consumer Research , 15 : 354 – 359 .
   Google Scholar
• Raghubir , P. , Inman , J. and Grande , H. 2004 . The three faces of consumer promotions . California Management Review , 46 ( 4 ) : 23 – 42 .
   Web of Science ®Google Scholar
• Ramaswamy , V. and Srinivasan , S. 1998 . Coupon characteristics and redemption intentions: a segment-level analysis . Psychology and Marketing , 15 : 59 – 80 .
   Web of Science ®Google Scholar
• Rosen , Ch. 1985 . The cents-off lure: identifying the coupon-susceptible consumer Unpublished thesis, Graduate School of Business, The University of Texas. In Sales promotion: concepts, methods and strategies, eds. R. Blattberg and S. Neslin. Englewood Cliffs, NJ: Prentice Hall
   Google Scholar
• Schmidt , M. and Bjerre , M. 2003 . Can recipients of sales flyers be segmented? . International Journal of Advertising , 22 : 375 – 391 .
   Google Scholar
• Schneider , L. and Currim , I. 1991 . Consumer purchase behaviors associated with active and passive deal-proneness . International Journal of Research in Marketing , 8 : 205 – 222 .
   Google Scholar
• Schultz , D. , Robinson , W. and Petrison , L. 1998 . Sales promotion essentials , Lincolnwood, IL: McGraw Hill .
   Google Scholar
• Shi , Y-Z. , Cheung , K-M. and Prendergast , G. 2005 . Behavioural response to sales promotion tools . International Journal of Advertising , 24 ( 4 ) : 467 – 486 .
   Google Scholar
• Shimp , T. 1990 . Promotion management and marketing communications , 2nd ed , Hinsdale, IL : The Dryden Press .
   Google Scholar
• Shimp , T. and Kavas , A. 1984 . The theory of reasoned action applied to coupon usage . Journal of Consumer Research , 11 : 795 – 809 .
   Web of Science ®Google Scholar
• Shoham , A. , Kahle , L. and Rose , G. 1995 . Predicting price importance and deal-proneness . European Advances in Consumer Research , 2 : 258 – 263 .
   Google Scholar
• Simpson , L. 2006 . Enhancing food promotion in the supermarket industry: a framework for sales promotion success . International Journal of Advertising , 25 ( 2 ) : 223 – 245 .
   Web of Science ®Google Scholar
• Sivakumar , K. and Raj , S. 1997 . Quality tier competition: how price change influences brand choice and category choice . Journal of Marketing , 61 ( July ) : 71 – 84 .
   Google Scholar
• Song , I. and Chintagunta , P. 2007 . A discrete-continuous model for multicategory purchase behavior of households . Journal of Marketing Research , 44 ( November ) : 595 – 612 .
   Google Scholar
• Tat , P. and Bejou , D. 1994 . Examining black consumer motives for coupon usage . Journal of Advertising Research , 34 ( 2 ) : 29 – 35 .
   Web of Science ®Google Scholar
• Teel , J. , Williams , R. and Bearden , W. 1980 . Correlates of consumer susceptibility to coupons in new grocer product introductions . Journal of Advertising , 9 ( 3 ) : 31 – 46 .
   Google Scholar
• Tellis , G. 1988 . Advertising and sales promotion strategy , Reading, MA: Addison Wesley Longman .
   Google Scholar
• Tellis , G. and Zufryden , F. 1995 . Tackling the retailer decision maze: which brands to discount, how much, when and why? . Marketing Science , 14 ( 3 (part 1 of 2) : 271 – 299 .
   Google Scholar
• Van Heerde , H. and Bijmolt , T. 2005 . Decomposing the promotional revenue bump for loyalty program members versus nonmembers . Journal of Marketing Research , 42 ( 4 ) : 443 – 457 .
   Web of Science ®Google Scholar
• Van Heerde , H. , Leeflang , P. and Wittink , D. 2004 . Decomposing the sales promotion bump with store data . Marketing Science , 23 ( 3 ) : 317 – 334 .
   Web of Science ®Google Scholar
• Wakefield , K. and Barnes , J. 1996 . Retailing hedonic consumption: a model of sales promotion of a leisure service . Journal of Retailing , 72 ( 4 ) : 409 – 427 .
   Web of Science ®Google Scholar
• Wakefield , K. and Inman , J. 2003 . Situational price sensitivity: the role of consumption occasion, social context and income . Journal of Retailing , 79 ( 4 ) : 199 – 212 .
   Web of Science ®Google Scholar
• Walters , R. and Jamil , M. 2003 . Exploring relationships between shopping trip type, purchases of products on promotion and shopping basket profit . Journal of Business Research , 56 ( 1 ) : 17 – 29 .
   Web of Science ®Google Scholar
• Ward , J. and Hill , R. 1991 . Designing effective promotional games: opportunities and problems . Journal of Advertising , 20 ( 3 ) : 69 – 81 .
   Web of Science ®Google Scholar
• Webster , F. 1965 . The deal-prone consumer . Journal of Marketing Research , 2 ( 2 ) : 186 – 189 .
   Web of Science ®Google Scholar
• Wedel , M. and Kamakura , W. 2000 . Market segmentation: conceptual and methodological foundations , 2nd ed , Boston, MA : Kluwer Academic Publishers .
   Google Scholar
• Wernerfelt , B. 1986 . A special case of dynamic pricing policy . Management Science , 32 : 1564 – 1566 .
   Google Scholar
• Wernerfelt , B. 1991 . Brand loyalty and market equilibrium . Marketing Science , 10 ( Summer ) : 229 – 245 .
   Google Scholar
• Zentes , J. , Morschett , D. and Schramm-Klein , H. 2007 . Strategic retail management: text and international cases , Wiesbaden : Germany: Gabler .
   Google Scholar
• Ziliani , C. 2006 . Target promotions: how to measure and improve promotional effectiveness through individual customer information . Journal of Targeting, Measurement and Analysis for Marketing , 14 ( 3 ) : 249 – 259 .
   Google Scholar
• Ziliani , C. and Bellini , S. 2004 . Retail micro-marketing strategies and competition . International Review of Retail, Distribution and Consumer Research , 14 ( 1 ) : 7 – 18 .
   Google Scholar