2009 | Volume 23 Issue I
E-Book, Englisch, 218 Seiten, eBook
Reihe: European Retail Research
ISBN: 978-3-8349-8203-2
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: Wasserzeichen (»Systemvoraussetzungen)
Prof. Dr. Dirk Morschett, University of Fribourg, Switzerland
Prof. Dr. Thomas Rudolph, University of St. Gallen, Switzerland
Prof. Dr. Peter Schnedlitz, Vienna University of Economics and Business Administration, Austria
PD Dr. Hanna Schramm-Klein, Saarland University, Germany
Prof. Prof. h.c. Dr. Bernhard Swoboda, University of Trier, Germany
Zielgruppe
Research
Autoren/Hrsg.
Weitere Infos & Material
1;Preface of the Editors;6
2;Contents;8
3;How Store Flyers Affect Consumer Choice Behaviour: National Brands vs. Store Brands;9
4;The Effect of Free Product Premiums on Attitudes and Buying Intention for Durable Goods: Moderating Effects of Value and Product Premium Fit in the Dual Mediation Model;29
5;Direct Selling: Consumer Profile, Clusters and Satisfaction;54
6;Logistics Service Quality and Technology Investment in Retailing;76
7;Does Architecture Influence the Price Image and Intention to Shop in a Retail Store?;90
8;Consumer Perceptions of Grocery Retail Formats in Romania: The Varying Impact of Retailer Attributes;108
9;An Assessment of Wal-Mart’s Global Expansion Strategy in the Light of its Domestic Strategy;131
10;Retailing in Germany: Current Landscape and Future Trends;158
11;The Finnish Retail Market: Overview;188
Mit Beiträgen von: Juan Carlos Gázquez-Abad und Manuel Sánchez-Pérez, Roland Helm, Antje Mark und Sabine Bley, Bráulio Alturas und Maria C. Santos, Irene Gil-Saura und María-Eugenia Ruiz-Molina, Stephan Zielke und Waldemar Toporowski, Bernhard Swoboda, Bettina Berg, Nicolae A. Pop und Christian Dabija, David P. Brennan und Lorman L. Lundsten, Joachim Zentes und Sebastian Rittinger, Heli Paavola, Mari Ainasoja, Elina Vulli und Sanna Rytövuori.
How Store Flyers Affect Consumer Choice Behaviour: National Brands vs. Store Brands (S. 1)
Juan Carlos Gázquez-Abad and Manuel Sánchez-Pérez
Abstract
Feature promotions or advertised deals constitute an important element of retailer promotion activities. In particular, the effectiveness of store flyers is one of the aspects of most concern to the marketing managers of retail stores as part of their marketing strategy. This paper looks to shed more light on this issue by analysing the effect of brand presence in flyers on consumer choice for both national brands and store brands.
To this end, a Multinomial Logit Model (MNL) is estimated with parameters specific to brands using store-flyers. With these specific parameters, a “competitive flyer effect” ratio is estimated in order to establish which brand benefits from being featured in the same flyer. The results provide key insights for both retailers and manufacturers on how to improve the effectiveness of store flyers.
Keywords
Retailing, Store Flyers, Store Brand, National Brands, MNL Models
1. Introduction
How effective store flyers are is one of the aspects of most concern to the marketing managers of retail stores as part of their marketing strategy (Hansen/Christiansen/Thomsen 2003). This issue is important because firms spend large sums on producing and subsequently disseminating this material (Raghubir/Inman/Grande 2004). Thus, according to data from IRI, price cuts are the most used promotional technique by hypermarkets (7.3% of the total promotion budget), followed by the use of store flyers (6.6%).
Unfortunately, retailers do not know exactly how effective store flyers are in improving their sales. Marketing managers attribute this high investment in sales promotion to the immediate effects of these actions on sales (Schultz/ Robinson/Petrison 1998). Feature promotions or advertised deals constitute an important element of retailer promotion activities (Arnold/Kozinets/Handelman 2001). These huge budgets are justified by the strategic role attributed to promotion advertisements (e.g. Bodapati 1999, Volle 1997, Arnold/ Kozinets/Handelman 2001).
Thus, many customers engage in a search for low prices and promotions by reading supermarket newspapers or flyers (Walters/Jamil 2003). In addition, feature promotions advertised in store flyers constitute an important source of income for retailers, resulting from fees charged to manufacturers whose brands appear in the flyer (Gijsbrechts/Campo/Goossens 2003), helping stores to promote new products, announcing new stores, and communicating price specials.
On the other hand, store flyers are a means of generating traffic and sales among consumers (Shimp 1997). Nevertheless, the increasing economic importance of store flyers as a promotional tool in retailing has not been reflected in marketing literature (Ailawadi/Neslin/Gedenk 2001, Raghubir/Inman/Grande 2004). Thus, few studies have assessed the efficacy of this promotional tool in retail stores (Blattberg/Briesch/Fox 1995, Schmidt/Bjerre 2003).
Clearly, more research is needed on this issue to provide guidelines that will support important store flyer decisions (Miranda/Kónya 2007). As these authors establish (p. 181), “it would be useful to investigate the response to store label-featured promotions on flyers”. Thus, the main objective of the present study is to address this gap in the literature by analysing the differentiated effect of brands’ presence (national vs. store brands [SBs]) in store flyers on consumer choice behaviour.
There is no evidence of flyers’ effectiveness distinguishing between both national and SBs to the best of our knowledge. It is true that Gijsbrechts/Campo/Goossens (2003) analysed how much emphasis to place on both types of brands, however they focused on the effect on store traffic and (store) sales of portion of in-flyer space allocated to SBs, more than effect on consumer choice probability itself.
Given this current research gap, and starting from a situation where the retailer offers a weekly store flyer, this paper examines the following issues: - We develop and test hypotheses on the positive effects of brands’ presence in store flyers on consumers’ choice behaviour. - We identify how presence of national brands in flyers moderates the influence of store brands’ presence in flyers on consumers’ choice behaviour.
Not only do these insights improve our understanding of how featuring works at household level, they are also of crucial importance to retailers attempting to improve their store flyer composition. The discussion is organized as follows. In the next section, we provide a review of the relevant literature. Next, both data and methodology are discussed. Our test involves a Multinomial Logit Model (MNL) using specific parameters with panel data. Following this, we present the results of the empirical analysis. Based on the findings, the paper outlines the main conclusions and suggests some implications for retail management.
