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1 – 10 of 678Danny Claro, Valter Afonso Vieira, Raj Agnihotri and Rafael Serer
As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become…
Abstract
Purpose
As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become complicated in the presence of different retail format strategies (generalist vs specialist) and channel structures (direct to retailer vs distributors). Building on trade promotion literature, this study aims to show the main effect of value-related and experience-related trade promotions on retailers’ sales and the moderating role of different retail strategies and channel structures.
Design/methodology/approach
The authors use unique panel data from 8 personal care brands with 1,920 observations to test the hypotheses. The authors investigate how consumer goods manufacturer sells products using different channels structures and retail strategies. Estimated panel regressions provide the empirical evidence and robustness analyzes provide extra confidence to the findings.
Findings
Results reveal higher retail sales when the manufacturer invests in value-related trade promotions rather than experience-related trade promotions. The results also demonstrate how the manufacturer successfully invests in trade promotion by adequately accounting for channel structure and retail strategy. While temporary price reduction’s positive effect on retail sales is enhanced in generalist retailers (e.g. supermarket stores), shelf display’s positive impact is enhanced in specialist retailers (drug stores).
Research limitations/implications
The authors used unique panel data accounting for 15 months, limiting the findings. The results supported the investment allocation decisions in each period. However, future research may evaluate the effectiveness over a longer period and thoroughly address each investment’s seasonal effects.
Practical implications
The authors unveil how retailers achieve higher sales with value-related trade promotions when compared to experience-related trade promotions. The authors also shed light on the way manufacturers design their relationships with generalist and specialist retailers by working in direct and indirect channels. Trade promotions yield better results when the direct channel structure couples with a retailer’s generalist strategy.
Originality/value
The empirical findings help manufacturers achieve success in trade promotions by developing an equitable evaluation to contrast value- and experience-related promotions accounting for generalist and specialist retail strategies and direct and indirect channels.
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Chenxiang Qian, Chih-Fu Wu, Zhenbo Zhang and Hsin-Yu Huang
The purpose of this paper is to explore current marketing communication mixes (MCMs) in two industries, electronics home appliance stores (face-to-face interaction) and remote…
Abstract
Purpose
The purpose of this paper is to explore current marketing communication mixes (MCMs) in two industries, electronics home appliance stores (face-to-face interaction) and remote care (interface-mediated interaction), to propose marketing strategies from the perspective of service design and determine the relationships between service interaction patterns and MCMs in the pre-service phase.
Design/methodology/approach
Six industry experts in marketing were interviewed through semi-structured interviews, the topic of which focused on the details of five MCMs and their correlations were analyzed using a customer journey maps. Finally, the MCMs were further explored to verify differences in attractiveness to customers, respectively.
Findings
The result showed that the most attractive activity for the electronics home appliance stores customer is the promotion. And the four face-to-face service interaction patterns and MCMs exhibited a low correlation. In addition, the customers of remote care service argued that the personnel selling was the most attractive MCMs to them. For customers who utilize smart devices to communicate with advertisement exhibited the highest correlation coefficient.
Research limitations/implications
The limitation of this study is that the research only conducts interview research on two service industries.
Practical implications
This study was expected to develop improved marketing communication strategies to remedy the sales predicament induced by virtual channels and to increase people’s acceptance of remote care service.
Originality/value
The value of this paper is to analyze the correlation and difference of MCMs and service interaction patterns between electronics home appliance stores and remote care, and propose a structural model of MCMs for two different industries.
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Cristina Ziliani and Marco Ieva
The purpose of this paper is to evaluate the recent evolution of store flyers to illustrate how a tool of traditional marketing can be applied to generate insight on customer…
Abstract
Purpose
The purpose of this paper is to evaluate the recent evolution of store flyers to illustrate how a tool of traditional marketing can be applied to generate insight on customer “couch-to-cart” behaviour thus supporting an innovating shopper marketing approach. The authors support this position by elaborating on three themes: first, the recent evolution of flyers, driven by incorporation of customer insight derived from loyalty data and by new features enabled by flyer digitalization; second, the evolution of the flyer planning and management process, related to opportunities and challenges in the retailer organisational structure; and third, the rise of online flyer aggregators.
Design/methodology/approach
The authors used field interviews. The authors included the perspectives of different subjects involved in planning and delivering flyer-based promotions. Secondary data were also collected regarding flyer activities of a sample of 67 retail groups across 15 countries and four industries.
Findings
Critical aspects of flyers as retail marketing tools emerged. The authors found that there are changes taking place in flyer-based promotion caused by “fertilisation” by loyalty data and digital that have not been captured by research so far. Retailers are experimenting with flyer aggregators. These infomediaries generate new insight on various aspects of the shopping cycle. Retailers can use these metrics to improve flyer strategy and negotiation with suppliers. The authors shed light on obstacles that prevent exploitation of shopper marketing benefits and value. Among the managerial challenges the authors found retailer organisation and management and functional integration.
Research limitations/implications
The paper points to four areas for future research: promotion innovation, electronic intermediaries, marketing organisation and competition. Research questions are suggested.
Practical implications
This study contributes to retail management by identifying best practices that support promotional campaign development in a shopper marketing perspective. The authors provide suggestions around the incorporation of loyalty data in the flyer planning process and the creation of inter-functional teams.
Originality/value
Academic research has long addressed flyer-based promotion, but has not linked it to innovation or shopper marketing. Little or no attention has been paid to the flyer management process and its organisational dimensions, nor to digital flyers.
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Discusses frequent flyer programs, promotional programs aimed at increasing brand loyalty amongthe important business travel market segment. Shows how what seemed like a good…
Abstract
Discusses frequent flyer programs, promotional programs aimed at increasing brand loyalty among the important business travel market segment. Shows how what seemed like a good marketing strategy has turned into a nightmare for nearly all parties concerned; airlines have found that the programs cost more than they are worth. Draws lessons from the airline frequent flyer programs that might be of interest to any marketing manager who is interested in using promotional programs to create competitive advantage.
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Beatrice Luceri, Fabrizio Laurini and Sabrina Latusi
The study develops a decision support system for the spatial distribution of store flyers, identifying a number of factors related to the demand and the competition influencing…
Abstract
Purpose
The study develops a decision support system for the spatial distribution of store flyers, identifying a number of factors related to the demand and the competition influencing the complexities of their allocation to the target population.
Design/methodology/approach
The model was developed incorporating the insights found in existing marketing literature and bypassing the limitations of the managerial practices. To this end, an in-depth discussion with a panel of retailers was held. The model was tested in collaboration with a retail chain.
Findings
The proposed system is flexible and provides an almost endless array of solutions in accordance with the retailer's strategic approach to the market. It captures the key trade-offs that need to be made during the decision-making process of a retailer with limited marketing resources.
Practical implications
The traditional managerial approach, based on a set of operational steps, is overtaken by a model that systematically considers the interrelationships between the decision-making factors involved.
Originality/value
This is the first attempt to analyse spatial distribution of store flyers, a topic that has yet to be explored in retail marketing research. The paper conceptualises the key variables which affect the optimisation problem and reviews the different streams of extant research to obtain the appropriate insights.
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Adilson Borges, Gérard Cliquet and André Fady
Even if a sales promotion attracts consumers to the store, the hi‐lo performance will be uncertain if these consumers buy only promoted categories. Retailers need to pay attention…
Abstract
Purpose
Even if a sales promotion attracts consumers to the store, the hi‐lo performance will be uncertain if these consumers buy only promoted categories. Retailers need to pay attention to avoid promoting categories that are frequently bought together in the same promotional action, or be faced with a strong redundancy effect. This paper proposes a method to decrease redundancy effect without reducing overall promotion utility (and store traffic).
Design/methodology/approach
Three conjoint analyses were carried out, two based on promotional assortments composed by real product categories, and one based on attribute description.
Findings
The results suggest that grocery stores can avoid redundancy effects by introducing categories with weak conjoint probabilities, resulting in a higher share of full priced products on the consumer baskets without reducing the global utility of the promotion.
Research limitations/implications
Real promotion contains large number of category/brands, and we strongly recommend further research on this.
Practical implications
Retailers can propose promotional actions that increase store traffic and develop the price image of the store. By managing buying association, retailers can create more profitable promotions.
Originality/value
The idea of building promotions that take into account the redundancy effect as well as measuring its impact on consumer promotional value and store image are the main value of this research.
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Maciel Prediger, Ruben Huertas-Garcia and Juan Carlos Gázquez-Abad
The purpose of this paper is to investigate the relationship between several aspects of store flyers design (presence of a institutional slogan, type of product (national brand…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between several aspects of store flyers design (presence of a institutional slogan, type of product (national brand (NB) or store brand (SB)) featured on the cover page, the size of the flyer, number of featured NBs, type of brand (NB vs SB) on promotion, and price difference between the most expensive (NB) and the cheapest SB) and the consumer’s perceived variety of the retailer’s assortment, as a dimension of its global image.
Design/methodology/approach
A mixed laboratory experiment that combined a between-subjects experimental design and inter-subject conjoint analysis was conducted. A fictitious flyer from a fictitious supermarket was created that included both real NBs and fictitious SBs. In total, 12 scenarios (i.e. flyers) were tested using a sample of 406 participants.
Findings
Analysis suggests that longer flyers have the greatest influence on consumers’ perceived variety of a retailer’s assortment; a greater number of NBs in a category influenced consumers’ perceptions positively, and featuring SBs on the cover enhanced perceived variety. If a retailer features SBs on a flyer’s cover, longer flyers are recommended, and shorter flyers are recommended if NBs are featured on the cover. A retailer should promote its own brand only if the most expensive NBs are featured with SBs.
Research limitations/implications
This study analyses a single aspect of consumers’ purchasing behaviors – variety of a retailer’s assortment. Future research should examine other variables related to consumers’ purchasing behaviors. This study uses an online context to test hypotheses, but many aspects of flyer design are physical. Future research should test current findings in offline contexts to compare results. Research should also explore moderation by consumer variables such as brand and store loyalty.
Practical implications
To researchers, the authors offer improved understanding of how a flyer’s design affects the first stage of purchasing. To practitioners, results offer better understanding of positive returns on investment of store flyers, and to retailers, results offer a guide to creating and organizing flyers.
Originality/value
This study is first to assess how a flyer’s design influences a dimension of store image. Unlike extant research that examines store flyers using econometric models at the aggregate level, this study uses a laboratory experiment that combines a between-subjects design with conjoint analysis.
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Kristian Pentus, Kerli Ploom, Andres Kuusik and Tanel Mehine
The purpose of this paper is to show how analysing sales flyers with a combination of eye tracking, measurement of emotions, interview and content analysis can give an in-depth…
Abstract
Purpose
The purpose of this paper is to show how analysing sales flyers with a combination of eye tracking, measurement of emotions, interview and content analysis can give an in-depth understanding on how different design aspects influence sales flyers’ effectiveness as a communication tool. The paper shows the relationship between different sales flyer design principles and a person’s preference towards it, as well as the intent to read it.
Design/methodology/approach
The paper chose for pilot study using eye tracking and emotions measurement to analyse retail sales flyers. In addition, interviews and content analysis were conducted to fully understand which aspects of sales flyer design influenced consumers.
Findings
The paper’s main findings are that sales flyers that evoke more positive emotions are prone to be chosen, and the attention and the view time of content pages is related to the number of elements on the page, page coherence and the location of the offers.
Research limitations/implications
This research uses eye tracking were sales flyers are shown on screen, which is not a natural way to read sales flyers. Future research should aim to test this methodology and prepositions in the natural environment.
Practical implications
The paper includes implications for designing better sales flyers.
Originality/value
To the authors’ knowledge, sales flyers have never been studied with a research design combining eye tracking, measurement of emotions, interview, content analysis and preferences.
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The purpose of this paper is to discuss the range of potential influences on children's food choices, while suggesting that recent restrictions on advertising of some foods may…
Abstract
Purpose
The purpose of this paper is to discuss the range of potential influences on children's food choices, while suggesting that recent restrictions on advertising of some foods may not be as effective as expected. It aims to use home‐delivered food promotional materials to illustrate the types of promotional activity that are not covered by recent regulatory actions.
Design/methodology/approach
All food promotional leaflets and flyers delivered to households over a four‐month period were analysed in terms of their overall content and whether healthy options were included in the content or in special promotional offers.
Findings
The study finds that 90 per cent of the material featured foods whose advertising would potentially be restricted if it were placed in media for which regulations were tightened in early 2007. Few included healthy options in menus – and none offered these as part of their special promotions.
Research limitations/implications
Material was collected from only one area of a large English city; however it is reasonable to assume that the type of material received is broadly representative of the material likely to be distributed across the UK and possibly other countries as well.
Practical implications
Increased restriction of advertising of some types of food products does not address myriad influences on children's food choices. If the restrictions fail to deliver the expected benefits, further restrictions are likely to follow, but concentrating on one potential factor in isolation while failing to consider the wide range of influences on food choices means that even tighter restrictions are unlikely to achieve the intended results. Policy makers should consider the wider environmental factors that may influence food choices, and the development of health promotion strategies that reflect a more holistic and integrated approach than is currently occurring.
Originality/value
There are few studies of the potential impact of factors other than advertising. The findings of this study suggest that lobbyists, policy makers and advertisers alike should take a more holistic view of potential influences on dietary choice.
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Salome Drechsler, Peter S.H. Leeflang, Tammo H.A. Bijmolt and Martin Natter
The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase…
Abstract
Purpose
The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase probability and quantity decision.
Design/methodology/approach
The paper combines two empirical studies. Study 1 applies a hierarchical multiplicative model to store-level sales data for four product categories provided by a large Dutch retail chain. Study 2 presents a laboratory experiment in which the quantity requirements of the two focal MUP frames are manipulated to assess their impact on consumer purchase decisions.
Findings
The paper provides empirical evidence for the superiority of the “X for $Y” above “X + N free”, which confirms the hypotheses based on prospect theory, mental accounting and theory about gift-giving. Quantity requirements of four to five units show the largest effects. In addition, the superiority of the “X for $Y” frame holds for functional product categories, but not for the hedonic categories.
Practical implications
The paper provides managerial insights into the relative effectiveness of alternative MUPs and an SUP and how this promotional effectiveness depends on the type of product category and quantity requirements.
Originality/value
This paper combines actual sales data and experimental data. This “mixed approach” extends existing knowledge by comprehensively evaluating two MUP frames, namely, “X + N free” and “X for $Y” promotions, and an SUP.
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