Effects of prior brand usage and promotion on consumer promotional response

We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on subsequ...

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Bibliographic Details
Published in:Journal of retailing 2006-01, Vol.82 (4), p.295-307
Main Authors: Bridges, Eileen, Briesch, Richard A., Yim, Chi Kin (Bennett)
Format: Article
Language:English
Subjects:
Brand loyalty
Brand usage
Consumer behavior
Consumer response
Consumers
Feedback
Households
Impact analysis
Market shares
Marketing
Price
Promotion
Purchasing
Retail stores
Retailing
Sales promotions
Studies
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Summary:We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on subsequent brand choices. Impact may be observed at the brand level, category level, or both and we suggest circumstances in which each might occur. Across four product categories, consumer sensitivity to price, price promotions, and feature advertisements increases for all brands in the product category following a promotional purchase but also decreases for the most recently purchased brand. The magnitudes of the results indicate that prior promotional purchases influence choice more than prior brand usage does. We offer managerial recommendations regarding promotional activities, for both retailers and manufacturers.
ISSN:0022-4359
1873-3271
DOI:10.1016/j.jretai.2006.08.003