You are on page 1of 19

_______________________________________________________________

_______________________________________________________________

Report Information from ProQuest


January 13 2014 05:21
_______________________________________________________________

13 January 2014

ProQuest

Table of contents
1. Consumer evaluations of sales promotion: the effect on brand choice........................................................ 1
Bibliography...................................................................................................................................................... 17

13 January 2014

ii

ProQuest

Document 1 of 1

Consumer evaluations of sales promotion: the effect on brand choice


Author: Begoa Alvarez Alvarez; Rodolfo Vzquez Casielles
Publication info: European Journal of Marketing 39.1/2 (2005): 54-70.
ProQuest document link
Abstract: This study evidences the influence that sales promotion has on brand choice behaviour.
Establishments wish to influence consumers' buying behaviour, and thus they launch strong promotional
campaigns or introduce changes in their price policies, among other actions. However, they are not always
capable of achieving their goal, since, although they may reach their objective in the short term, when the longer
term is considered there are undesirable consumer actions. The problem of consumer brand choice can be
adequately described with logit models that allow the use of discrete dependent variables. The probability that
the consumer chooses a brand depends directly on the capacity of satisfaction that the brand holds for him/her.
In this case, the dependent variable is the brand, and the independent variables are price, reference price,
losses and gains, and the different types or techniques of sales promotion. With the aim of obtaining the
necessary information for the present study, a regional consumer panel was used. The results show that it is
necessary to consider the product's promotional state at the moment of purchase as an explanatory element of
the process. Promotion is a tool that can help manufacturers and/or retailers in the achievement of their
objectives (try the brand, help to decide what brand to buy, etc.). Immediate price reduction is the technique that
exerts greatest influence on the brand choice process. It is possible that the consumer perceives a promotion,
for example, coupons or rebates, but does not modify his or her behaviour. In this case, manufacturers and/or
retailers will be investing their resources in promotional actions that do not have any effect on the consumer.
Presents a regional consumer panel that has been elaborated and planned by the authors. Because of this, the
information collected is just what was necessary for this study. On the other hand, the paper shows that is very
important to know the consumer's preferences and the actions that influence his or her behaviour. Considering
the results, it seems that promotions based on price have the greatest effectiveness.
Full text: Headnote
Abstract
Purpose - This study evidences the influence that sales promotion has on brand choice behaviour.
Establishments wish to influence consumers' buying behaviour, and thus they launch strong promotional
campaigns or introduce changes in their price policies, among other actions. However, they are not always
capable of achieving their goal, since, although they may reach their objective in the short term, when the longer
term is considered there are undesirable consumer actions.
Design/methodology/approach - The problem of consumer brand choice can be adequately described with logit
models that allow the use of discrete dependent variables. The probability that the consumer chooses a brand
depends directly on the capacity of satisfaction that the brand holds for him/her. In this case, the dependent
variable is the brand, and the independent variables are price, reference price, losses and gains, and the
different types or techniques of sales promotion. With the aim of obtaining the necessary information for the
present study, a regional consumer panel was used.
Findings - The results show that it is necessary to consider the product's promotional state at the moment of
purchase as an explanatory element of the process. Promotion is a tool that can help manufacturers and/or
retailers in the achievement of their objectives (try the brand, help to decide what brand to buy, etc.). Immediate
price reduction is the technique that exerts greatest influence on the brand choice process. It is possible that the
consumer perceives a promotion, for example, coupons or rebates, but does not modify his or her behaviour. In
this case, manufacturers and/or retailers will be investing their resources in promotional actions that do not have
13 January 2014

Page 1 of 17

ProQuest

any effect on the consumer.


Originality/value - Presents a regional consumer panel that has been elaborated and planned by the authors.
Because of this, the information collected is just what was necessary for this study. On the other hand, the
paper shows that is very important to know the consumer's preferences and the actions that influence his or her
behaviour. Considering the results, it seems that promotions based on price have the greatest effectiveness.
Keywords Brands, Consumer behaviour, Prices, Advertising, Discounts, Promotional methods
Paper type Research paper
Introduction
Prices are used by retail establishments as an advertising appeal to attract consumers. This is shown by the
increasing presence of product prices in the media and advertising campaigns. This is aimed at providing the
consumer with a comparative element to judge the different alternatives he or she has at his or her disposal
when making a purchase.
Similarly, it can be seen that establishments invest a large part of their budget in sales promotion. The intention
is to give the product greater appeal and value. Although a lot of sales promotion alternatives exist, traditionally
the most widely used is immediate price reduction. However, this situation often depends on the country
involved.
These ideas allow us to conclude that establishments wish to influence consumers' buying behaviour, and thus
they launch strong promotional campaigns or introduce changes to their price policies, among other actions.
However, they are not always capable of achieving their goal, since although they may reach their objective in
the short term, when the longer term is considered there are undesirable consumer actions.
In the present paper we aim to look closely into consumers' buying behaviour. We analyse the influence of a
series of fundamental variables on the brand choice process: price, reference prices, losses and gains and
loyalty. Special attention is given to the influence that sales promotion actions developed by manufacturers and
distributors have on this process.
The structure of the present work is as follows. First we carry out a review of the brand choice models, where
the influence of price, reference prices, losses and gains and loyalty is analysed. Then the study focuses on
sales promotions, the alternatives establishments have at their disposal, and those which are more acceptable
to consumers. Next, we formulate the hypotheses we wish to contrast as well as the methodology used to this
end and the results obtained. Finally, we expose the conclusions and business implications derived from the
study.
Brand choice models
Manufactures and retailers wish to understand the way marketing variables like price, loyalty or promotions may
affect their sales and therefore the market share of the products they commercialise. In previous studies the
most appropriate way to outline brand choice behaviour has been sought. Following these studies, we can
attest the existence of a series of fundamental variables, which we will comment on below (Figure 1).
The first such variable is price. The price observed at the moment of purchase is a fundamental variable. In the
models of Winer (1985), Lattin and Bucklin (1989), Kalwani and Yim (1992), Mayhew and Winer (1992), Briesch
et al. (1996) or Mazumdar and Papatla (2000), it appears as an essential matter of study.
Closely related to price is reference price. We can consider the reference price as a subjective price level with
which the consumer compares the prices observed at the moment of purchase. That is, when the consumer
plans to buy a product, he or she will judge prices comparatively in order to determine whether the price is
acceptable or not.
Authors are unanimous about the importance of considering reference prices in the purchasing and brand
choice process. Nevertheless, there is no agreement on their formation. Some authors contend that reference
prices are formed from the prices the consumer has faced on previous occasions, i.e. estimates based on the
past (Mayhew and Winer, 1992; Rajendran and Tellis, 1994; Bell and Bucklin, 1999; Erdem et al, 2001). Other
13 January 2014

Page 2 of 17

ProQuest

authors also take into account the tendency to buy in promotions, the price tendency or retailer characteristics
(Kalwani et al, 1990; Kopalle and Winer, 1996).

Other authors contend that it is difficult for the consumer to store information about old prices, and it is therefore
more likely that the consumer forms reference prices at the sale point through the observation of certain brands'
prices (Hardie et al, 1993; Rajendran and Tellis, 1994). It is also possible to introduce the effect of loyalty
towards different brands (Mazumdar and Papatla, 1995).
As a result of consumers' comparison between the price and the reference price, potential losses and gains
emerge. The consumer perceives a gain when the reference price is higher than the observed price. If the
observed price is higher than the reference price, the consumer experiences a loss.
The repercussions of these variables on the brand choice process is clear. When the consumer perceives a
loss, the utility that the alternative provides (brand) will diminish, and with it the likelihood of the purchase. If, in
contrast, the consumer perceives a gain, he or she will be more inclined to purchase (Winer, 1986; Kalwani and
Yim, 1992; Briesch et al, 1996; Mazumdar and Papatla, 2000).
It has been observed that both effects are of different intensity, i.e. they produce an asymmetric response in
consumers. However, there is no agreement on its direction. Some authors contend that the effect of losses will
be greater than that of gains according to prospection theory (Hardie et al, 1993; Kalyanaram and Little, 1994).
However, other authors like Greenleaf (1993,1995) defend the opposite position, i.e. that the consumers will
react more strongly to gains than to losses.
It has been proved that the repercussions of both elements on consumers depend on the individual's loyalty. It
is therefore interesting to segment the consumer market. Thus, we identify two groups, i.e. loyal and non-loyal
consumers. It is likely that loyal consumers will respond similarly to losses and gains. However, it seems that
non-loyal consumers will respond with more interest to gains (Krishnamurthi et al, 1992).
The variables considered so far constitute the basis of consumers' decisions. Models that study purchasing and
brand choice behaviour take these variables as a starting point in their utility functions.
In the present paper we consider sales promotion actions, together with the fundamental variables indicated
above (price, reference price, losses and gains and loyalty). Thus, in the next section we approach a series of
aspects related to sales promotions that it is necessary to take into consideration.
Influence of sales promotion on the brand choice process
The implementation of an adequate sales promotion may guarantee an increase in sales in a short period of
time. This justifies the tendency of establishments to invest a large part of their budget in these actions. A few
years ago, communication actions were more important, but they ended up saturating the final consumer and
lost their effectiveness. This has allowed sales promotion to acquire a greater prominence.
Sales promotion is a set of stimuli that are offered sporadically, and it reinforces publicity actions to promote the
purchasing of a certain product. Sales promotion techniques are intended to have a direct impact on buying
behaviour. The objectives of sales promotion will be reached to a greater extent when it is done sporadically,
when the consumer does not expect it. If the consumer is capable of anticipating when a sales promotion action
will take place, the results obtained will decrease. It is therefore necessary for the consumer not to be able to

13 January 2014

Page 3 of 17

ProQuest

anticipate sales promotions, and thus not to incorporate these incentives into the product's characteristics.
However, this does not mean that sales promotion is something improvised by the establishment. Sales
promotion actions must be properly planned, organised and integrated into the establishment's marketing plan.
The establishment must study the characteristics of the sector where it operates as well as its own
characteristics. No less important is knowing the competitors' characteristics, the actions they carry out, the
promotions they employ, and the consumers' characteristics. It is essential to know the audience being
addressesed, their behaviour, psychological and demographic characteristics, among others (Figure 2).
In this way it is possible to determine and design the promotional strategy to be developed. The organisation will
have to choose the best sales promotion technique(s) to reach its objectives.
It is necessary for the establishment to determine clearly the objective to be reached through sales promotion.
Once this has been established, the advisability of employing one promotion technique or another can be
derived. The objectives may in turn be of various kinds. The intention may be to increase the establishment's
visitors or to act on the consumer's loyalty to the brand, increase product's consumption or encourage trying out
a new brand, among others.
However, it is also relevant to distinguish between short-term and long-term objectives. The former are
generally aimed at responding to the competition's promotion incentives or getting rid of stock. However, longterm objectives usually focus on increasing the market share, the benefits and on developing an adequate
image to win renown.
The sales promotion technique to be developed will be different depending on the objectives. There is a wide
range of possibilities. In Table I we show one of the classifications of sales promotion techniques, specifically
that carried out by Brassington and Pettit (1997).

The use of different sales promotion techniques varies substantially from one country to another. Thus, while
the use of coupons is widespread in countries like the United Kingdom, in Spain it is immediate price reductions

13 January 2014

Page 4 of 17

ProQuest

(price cuts) that are mostly used.


Promotions provoke two reactions in people. The first is an increase in consumption, i.e. more quantity of a
product is acquired. The second is storage of the product for the future, i.e. the consumer acts anticipating his
purchases. Chandon and Wansink (1999) contrasted these effects for certain categories of product. However,
the effects will vary depending on the attractiveness of the techniques employed.
On the other hand, is possible that consumers who do not buy the brand will want to acquire it because they are
attracted by the sales promotion (Gupta, 1993). However, Brandweek (1994) found that some people who
change brand due to a promotion change back to their favourite brand when buying that category of product
later.
It is necessary to highlight that the use of sales promotions to encourage brand and product purchase and
consumption has to be sufficient. However it is necessary to stay alert, as the opposite effect could be provoked
on certain occasions. This occurs when the consumer perceives that he is paying for unnecessary activities to
enhance and position the product: this then provokes the opposite effect to the desired effect, i.e. the consumer
will stop buying the promoted brand (Simonson et al, 1994). It is also possible that the consumer avoids buying
the promoted brands so as not to have to justify his behaviour to his peer group (Simonson, 1989). There is also
another reason why promotion may not obtain the expected results: the consumer may feel he is being
manipulated and will "punish" the retailer by not purchasing the promoted brand or product.
The influence of sales promotions on the consumer will also depend on the consumer's characteristics. We can
point to the existence of three types of consumer segments:
(1) those who find these actions attractive and are therefore likely to buy the product;
(2) those who find them neither attractive nor necessary, and will therefore act by reducing their choice
probability; and
(3) those who remain indifferent and are therefore not affected by these actions in their final decision.
Formulation of hypotheses
In view of the review carried out, we consider it necessary to approach the study of the brand choice models by
taking into account not only the essential variables (i.e. price, reference price, losses and gains and loyalty), but
also the influence promotional actions have on them. As has been pointed out, promotions are frequently used
by retailers for different purposes. Perhaps one of most relevant is the brand change, i.e. it is intended to
increase a brand's market share.
The possibility has been suggested of employing different promotion techniques. Some are easy for the
consumer (immediate price reductions). Others need more effort or participation on the part of the consumer
(coupons, rebates or games). In both cases these promotions are related to the purchase of a specific product
or brand. But we must also consider a series of promotions that are related to the situation at the sale point (the
environment), like the celebration of anniversaries or special dates.
Taking these aspects into account, we intend to contrast the following hypotheses founded on the analysis of
previous studies and research works that acknowledge the need to introduce sales promotions into the brand
choice models (Gomez, 1997; MeIa et al, 1998; Suri et al, 2000; Lam et al., 2001). In fact, Gilbert and Jackaria
(2002) contrast the necessity of introducing sales promotion like an explanatory factor of brand choice, as well
as considering the effect of different types of technique that is possible to use.
H1. Models that incorporate the effect of sales promotion on brand choice will obtain better estimates that those
that do not consider this effect.
H2. The effect price reduction promotions have on brand choice probability is greater that the effect caused by
the existence of any other type of promotion.
Research methodology
General formulation: the model
The problem of the consumer's brand choice can be adequately described with logit models that allow the use
13 January 2014

Page 5 of 17

ProQuest

of discrete dependent variables. These models fulfil the assumptions of discrete choice theory. Then, the
probability of brand choice is a function of the market value of this alternative, compared with the market value
of the rest. Thus, the probability that a consumer chooses a brand depends directly on the capacity of
satisfaction that the brand holds for him or her. The brand that the consumer perceives to be the most suitable
alternative to satisfy his/her needs is the one that has the larger probability of being selected.

Collection of information and sample characteristics


With the aim of obtaining the necessary information for the present study, a regional consumer panel was
planned and elaborated. This panel was formed by a total of 200 consumers who collected information
systematically about a total of 54 categories of product during a 12-month period. The information required of
the consumers was as follows:
* category of product;
* brand;
* type or modality;
* date of purchase;
* place of purchase;
* number of units purchased;
* price per unit;
* type of promotion (if the product was promoted the individual had to select the specific type of promotion);
* total value of purchase made;
13 January 2014

Page 6 of 17

ProQuest

* form of payment;
* whether the consumer was in possession of the establishment's card; and
* whether the establishment had some type of special encouragement technique.
The categories of products analysed corresponded to habitual or everyday consumer products for most
households. Nevertheless within the group of products studied we can find different levels of purchasing
frequency, from daily purchases (milk or juice), to more sporadic purchases (brandy or infusions).
The study focuses on one category of product, i.e. margarine, since it is a product present in most households'
shopping baskets.
In the process of database debugging and creation we eliminated those households which did not buy the
product on at least five occasions during the realisation of the panel (we intended to eliminate the influence of
sporadic shoppers). With reference to the brands under study we selected, together with the store's brands,
brands with a higher participation in the household panel. In the selected category of product, i.e. margarine, the
market focuses on four brands which make up 71.5 per cent of the consumer panel. Regarding the sizes, we
have selected the most relevant ones (i.e. 250 and 500 grams).
Results
In order to proceed to the study of the aspects related to sales promotion and brand choice, we obtained
information about the promotional situation at the moment of purchase. In the collection of information we have
distinguished between promotions related to a certain product (product promotions or product-based) and those
related to the establishment's general offer (environment or store-based promotions).
Within each category (i.e. product promotions and environment promotions), we considered various types of
techniques, as summarised in Figure 3. To carry out a more adequate analysis they have been grouped into
three blocks, and thus we distinguish between price promotions, other product promotions and environment
promotions.
As we have previously pointed out, differences exist in the use of various promotional techniques in different
countries. Thus, in Spain there is frequent use of immediate price reductions (reduced price). In the household
panel analysed a clear difference exists: 24.2 per cent of purchases were affected by an immediate discount,
while only 3.8 per cent were under another type of product promotion. Finally, environment promotions were
present in 13.6 per cent of the purchases analysed.
Effect of promotion on brand choice models
The first objective to achieve is to improve the estimate of brand choice models with their introduction into
promotions. Thus we compare a model that includes the fundamental variables (price, reference price, losses
and gains and loyalty), with a more advanced model where three variables that represent the different groups of
promotions indicated are introduced.

13 January 2014

Page 7 of 17

ProQuest

To calculate losses and gains it was necessary to estimate reference prices. In a work previous to the one
presented here, different alternatives were analysed. The results showed that reference price estimates based
on observation are the most appropriate. Specifically, the approach used here calculates the reference price as
the arithmetic mean of the highest and lowest prices observed at the moment of purchase.
The models we proceed to compare are:
* the initial model;
* the price promotion model;
* promotions related to the product (i.e. price promotions and other promotions related to the product); and
* all types of promotions (i.e. price promotions, other promotions related to the product, and environment
promotions).
These models are discussed below.

13 January 2014

Page 8 of 17

ProQuest

The results obtained are summarised in Table II. In Table II we show information regarding the variables
involved in the model and the goodness of fit for each of the models estimated. In the first column in Table II we
present information about the initial model (with the fundamental variables) and in the next three columns the
information derived from the models in which promotions are introduced is shown.
The fundamental variables of the model as a whole have a remarkable influence on the brand choice process.
Specifically, the price, losses and gains are significant. With respect to loyalty, we must point out that it
influences perception and the consumer's response to potential gains. However, its influence on losses does
not seem to be significant. It is possible that loyal and non-loyal consumers do not differ in their response to a
loss situation.

13 January 2014

Page 9 of 17

ProQuest

13 January 2014

Page 10 of 17

ProQuest

As can be seen, the incorporation of promotions improves the models' estimates. The goodness of fit indicators
point to slight increases. Similarly, through the likelihood ratio it is proved that the introduction of the new
variables contributes significant information to the initial model (in this ratio the information provided by the initial
model is compared to that derived from each of the extended models). As we can see, the variables that
represent the promotional state are significant for the model as a whole.
Therefore it is possible to state that the explicit consideration of promotions in brand choice models is adequate,
since they provide better approaches to the consumer's buying behaviour. As a result we have proved H1:
brand choice models that incorporate the effect of promotions obtain better estimates than those in which this
effect is not accounted for.
Influence of different sales promotion techniques
Now we have confirmed the influence of the inclusion of promotions on brand choice models, we intend to look
more deeply into some aspects related to the use of the different techniques. As we have pointed out, there are
various sales promotion techniques that can be employed, either individually or together. In the household panel
we collected information about the existing promotional state at the moment of the purchase. Specifically, we
focused on the most widespread sales promotion techniques (Figure 3). However, despite the variety of
promotion techniques, the most frequently used is immediate price reduction.
In H2, we stated that the effect of price promotions on brand selection will be greater than that caused by any
other type of promotional action. In order to prove this hypothesis, we introduce two new variables to the model
proposed initially (price, reference price, losses and gains and loyalty, model 1). The first represents price
promotions. The second includes other of promotional actions. In this way, we will be able to analyse which of
the two variables exerts greater influence on the model.

In Table III we show a summary of the estimate for the new model proposed model 5. In order to determine
which of the two variables representing the different types of promotion has the most weight in the purchasing
process we must first analyse whether each of them is significant. If this is so, we must verify the importance of
each variable through a ^sup 2^ value.
As can be observed in Table III, the variable that represents price promotions is significant, while the variable
that represents the other promotion techniques is not. Consequently, we can say that price promotions influence
buying and brand choice behaviour. In contrast, there is no evidence to support the influence of other sales
promotions. This leads us to confirm, as H2 put forward, that price promotions have a greater impact on
consumer behaviour than other promotions.

13 January 2014

Page 11 of 17

ProQuest

Conclusions and future research directions


As can be concluded from the number of existing studies on this matter, consumer buying behaviour is a
mystery for manufacturers and retailers, about which much remains to be learned. In the literature there are
numerous works that try to shed light on the way that consumers plan and develop the purchasing process. A
large number focus on the brand choice process. From them we can affirm that a series of relevant variables
exists in this process. Although the behaviour varies from one consumer to another, there are some factors that
influence most consumers.
In this way, we can state that the price of products and brands at the moment of the purchase constitutes a
variable of interest. It will act to favour the purchase or choice of a specific brand (low price), or reduce the
likelihood of its purchase or choice (high price). Similarly, given the importance of price, consumers usually form
a reference price. Thus, when the consumer must take a decision he or she will act after comparing the price on
offer with the reference price.
From a comparison of prices and reference prices, potential losses (reference price lower than observed price)
and potential gains (reference price higher than observed price) emerge. Losses act to reduce the brand choice
probability, while gains act to increase it. It has been observed that these effects are of different intensity, i.e.
they produce an asymmetric response in consumers. However, there is no agreement on the 1 its direction.
Some authors contend that the effect of losses will be greater that the effect of gains, according to prospection
theory. However, other authors defend the opposite position, i.e. that consumers will react more strongly to
gains than to losses.
Nevertheless, not all consumers react in the same way and thus we can segment the market by distinguishing
between consumers who are loyal to a brand and consumers who are not loyal to a brand. It is necessary to
take into account such differentiated patterns of behaviour. Strategies that may be valid for one group are not
necessarily valid for the other.
These have been the most widely studied variables. However, it is necessary to take into account other
variables such as promotions. Thus, in the present paper, apart from considering the effect of the variables
already investigated, we have shown evidence of how sales promotion techniques influence the consumer's
13 January 2014

Page 12 of 17

ProQuest

buying and brand choice behaviour.


In this way, we have made clear the need to consider the product's promotional state at the moment of
purchase as an explanatory element of the process. As we have seen, models that include promotions possess
a greater explanatory capacity than those that do not.
The consumer's brand choice is affected by sales promotions. This fact is outstanding in the measure that the
techniques of sales promotion can be used to get concrete objectives. Prior to taking a decision, the consumer
will take into account whether or not a promotion exists.
Promotions can have as a side effect the consumer acquiring a brand that he or she would not otherwise try.
Moreover, sales promotion can help to decide which brand to buy when two brands are equally attractive to the
consumer. Sales promotion is a tool that can help manufacturers and/or retailers in the achievement of their
objectives.
A wide range of sales promotion techniques can be used. For the most part, it seems that promotions based on
immediate price reductions are the most frequently used. It has been proved that it is this technique that exerts
a greater influence on the brand choice process, i.e. sales promotion decisively influences the brand choice
process. Specifically, of all the techniques that can be employed, it is immediate price reductions (price cuts)
that have a more important effect on consumer behaviour.
Those sales promotion techniques that provide the best results should be used. Considering the results, it
seems that promotions based on price are most effective. This fact is very important, since the manufacturers
and/or retailers can invest in promotional actions that are not valued by consumers.
It is possible that the consumer perceives a promotion, for example coupons or rebates, but does not modify his
or her behaviour. In this case, the manufacturers and/or retailers are investing resources in promotional
activities that do not have any effect on the consumer. It is very important to know the consumer's preferences
and the actions that significantly influence consumer behaviour. So, resources invested in sales promotion
campaigns that are not valued by consumers should be diverted towards other promotional activities which are
valued by consumers (e.g. price cuts).
The present work needs to be extended to other categories of product in which brand choice behaviour could
vary. It would also be interesting to analyse the influence that consumers' characteristics have on their reactions
to sales promotions (consumption, loyalty, socio-economic or demographic factors).
Therefore the present work should be extended to other categories of product in which consumers show other
preferences. It should possible to analyse categories of product that are not bought with the same frequency.
Also, it would be interesting to consider products where consumers show a strong brand preference. Maybe if
categories of products whose buyers are very loyal are considered, another type of sales promotion action
would be preferred. This way, coupons or promotions that reward the loyalty could have a bigger effect than
price cuts.
Also, the characteristics of consumers could be another essential factor. How the reactions of households to
sales promotion activities varies according to the level of consumption of the product category could be
analysed. It would also be interesting to analyse for a certain category of products how promotional behaviour
varies depending on the type of consumer (i.e. loyal or not loyal to a brand). Very revealing results could be
achieved: are loyal consumers sensitive to promotions? Do loyal and non-loyal consumers prefer the same type
of sales promotion activity?
References
References
Bell, D.R. and Bucklin, R.E. (1999), "The role of internal reference points in the category purchase decision",
Journal of Consumer Research, Vol. 26, pp. 128-43.
Brandweek (1994), "Promotional influences spur buyers to try something new", Marketing Science, Vol. 21,
March, pp. 32-3.
13 January 2014

Page 13 of 17

ProQuest

Brassington, F. and Pettit, S. (1997), Principles of Marketing, Pitman, London.


Briesch, R.A., Krishnamurthi, L., Mazumdar, T. and Raj, S.P. (1996), "A comparative analysis of reference price
models", Journal of Consumer Research, Vol. 24, pp. 202-14.
Chandon, P. and Wansink, B, (1999), "When and why does consumer stockpiling accelerate consumption
volume?", Business Strategy Review, Vol. 10 No. 2, pp. 72-5.
Erdem, T., Mayhew, G. and Sun, B. (2001), "Understanding reference price shoppers: a within and cross
category analysis", Journal of Marketing Research, Vol. 38, November, pp. 445-57.
Gilbert, D.C. and Jackaria, N. (2002), "The efficacy of sales promotions in UK supermarkets", International
Journal of Retail &Distribution Management, Vol. 30 No. 6, pp. 315-22.
Gmez, C. (1997), "iQu pasa con las promociones en el Punto de Venta?", IPMARK, Vol. 482 No. 1-15, pp.
44-6.
Greenleaf, E.A. (1993), "The impact of reference prices effects on the profitability of price promotions",
Marketing Science, Vol. 14, Winter, pp. 82-104.
Greenleaf, E.A. (1995), "The impact of reference price effects on the profitability of price promotions", Marketing
Science, Vol. 14 No. 1, pp. 82-104.
Guadagni, P.M. and Little, J. (1983), "A logit model of brand choice calibrated on scanner data", Marketing
Science, Vol. 2 No. 3, pp. 203-38.
Gupta, A. (1993), "Reflections on 'Impact of sales promotions on when, what and how much to buy'", Journal of
Marketing Research, Vol. 30, pp. 522-4.
Hardie, B.G.S., Johnson, EJ. and Fader, P.S. (1993), "Modeling loss aversion and reference dependence
effects on brand choice", Marketing Science, Vol. 12 No. 4, pp. 378-94.
Kalwani, M.U. and Yim, C.K. (1992), "Consumer price and promotion expectations: an experimental study",
Journal of Marketing Research, Vol. 29, pp. 90-100.
Kalwani, M.U., Yim, C.K., Rinne, HJ. and Sugita, Y. (1990), "A price expectations model of customer brand
choice", Journal of Marketing Research, Vol. 27, pp. 251-62.
Kalyanaram, G. and Little, J. (1994), "An empirical analysis of latitude of price acceptance in consumer package
goods", Journal of Consumer Research, Vol. 21, pp. 408-18.
Kamakura, W. and Russell, G. (1989), "A probabilistic choice model for market segmentation and elasticity
structure", Journal of Marketing Research, Vol. 26, pp. 379-90.
Kopalle, P.K. and Winer, R.S. (1996), "A dynamic model of reference price and expected quality", Marketing
letters, Vol. 7 No. 1, pp. 41-52.
Krishnamurthi, L., Mazumdar, T. and Raj, S.P. (1992), "Asymetrie response to price in consumer brand choice
and purchase quantity decisions", Journal of Consumer Research, Vol. 19, pp. 387-400.
Lam, S.Y., Vandenbosch, M., Hulland, J. and Pearce, M. (2001), "Evaluating promotions in shopping
environments: decomposing sales response into attraction, conversion, and spending effects", Marketing
Science, Vol. 20 No. 2, pp. 194-215.
Lattin, J.M. and Bucklin, R.E. (1989), "Reference effects of price and promotion on brand choice", Journal of
Marketing Research, Vol. 26, August, pp. 299-310.
Mayhew, G.E. and Winer, R.S. (1992), "An empirical analysis of internal and external reference prices using
scanner data", Journal of Consumer Research, Vol. 19, pp. 62-70.
Mazumdar, T. and Papatla, P. (1995), "Loyalty differences in the use of internal and external reference prices",
Marketing Letters, Vol. 6 No. 2, pp. 111-22.
Mazumdar, T. and Papatla, P. (2000), "An investigation of reference prices segments", Journal of Marketing
Research, Vol. 35, pp. 246-58.
Mela, C.F., Gupta, S. and Jedidi, K. (1998), "Assessing long-term promotional influences on market structure",
International Journal of Research in Marketing, Vol. 15, pp. 89-107.
13 January 2014

Page 14 of 17

ProQuest

Rajendran, K.N. and Tellis, G. (1994), "Contextual and temporal components of reference price", Journal of
Marketing, Vol. 56, pp. 22-34.
Simonson, I. (1989), "Choice based on reason: the case of atraction and compromise effects", Journal of
Consumer Research, Vol. 16, pp. 158-74.
Simonson, L, Carmon, Z. and O'Curry, S. (1994), "Experimental evidence on the negative effect of product
features and sales promotions on brand choice", Marketing Science, Vol. 13 No. 1, pp. 23-40.
Suri, R., Manchada, R.V. and Kohli, C.S. (2000), "Brand evaluations: a comparison of fixed price and
discounted price offers", The Journal of Product &Brand Management, Vol. 9 No. 3, pp. 193-207.
Winer, R. (1985), "A price model of demand for consumer durables; preliminary developments", Marketing
Science, Vol. 4 No. 1, pp. 74-90.
Winer, R. (1986), "A reference price model of brand choice for frequently purchased products", Journal of
Consumer Research, Vol. 13, pp. 250-6.
Further reading
Voss, G. and Seiders, K. (2003), "Exploring the effect of retail sector and firm characteristics on retail price
promotion strategy", Journal of Retailing, Vol. 79, pp. 37-52.
AuthorAffiliation
Begoa Alvarez Alvarez and Rodolfo Vzquez Casielles
Department of Business Administration, University of Oviedo, Oviedo, Spain
Received January 2004
Subject: Sales promotions; Effects; Brands; Product choice; Objectives; Mathematical models; Statistical
analysis;
Location: Europe
Classification: 7200: Advertising; 7100: Market research; 9175: Western Europe; 9130:
Experimental/theoretical
Publication title: European Journal of Marketing
Volume: 39
Issue: 1/2
Pages: 54-70
Number of pages: 17
Publication year: 2005
Publication date: 2005
Year: 2005
Publisher: Emerald Group Publishing, Limited
Place of publication: Bradford
Country of publication: United Kingdom
Publication subject: Business And Economics--Marketing And Purchasing
ISSN: 03090566
Source type: Scholarly Journals
Language of publication: English

13 January 2014

Page 15 of 17

ProQuest

Document type: Feature


Document feature: diagrams equations tables references
ProQuest document ID: 237047648
Document URL: http://search.proquest.com/docview/237047648?accountid=50247
Copyright: Copyright MCB UP Limited (MCB) 2005
Last updated: 2010-06-11
Database: ProQuest Central

13 January 2014

Page 16 of 17

ProQuest

Bibliography
Citation style: APA 6th - American Psychological Association, 6th Edition
Begoa, A. A., & Rodolfo Vzquez Casielles. (2005). Consumer evaluations of sales promotion: The effect on
brand choice. European Journal of Marketing, 39(1), 54-70. Retrieved from
http://search.proquest.com/docview/237047648?accountid=50247

_______________________________________________________________
Contact ProQuest

Copyright 2014 ProQuest LLC. All rights reserved. - Terms and Conditions

13 January 2014

Page 17 of 17

ProQuest