Individual Differences in Response to Consumer Promotions

This research hypothesizes important individual differences in response to promotions and tests for them using a cross-sectional multinomial logit choice model. Our hypotheses suggest interactions between individual brand preference and the effects of current promotion and past promotional purchase....

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Main Authors: ORTMEYER, Gwen, LATTIN, James M., MONTGOMERY, David B.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 1991
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/1613
https://ink.library.smu.edu.sg/context/lkcsb_research/article/2612/viewcontent/Individual_differences_consumer_1991_afv.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.lkcsb_research-26122019-05-22T07:45:26Z Individual Differences in Response to Consumer Promotions ORTMEYER, Gwen LATTIN, James M. MONTGOMERY, David B. This research hypothesizes important individual differences in response to promotions and tests for them using a cross-sectional multinomial logit choice model. Our hypotheses suggest interactions between individual brand preference and the effects of current promotion and past promotional purchase. To test for these interactions, we introduce a new method of measuring brand preference from past purchase data. The new method seeks to incorporate competitive purchase conditions as modifiers to observed brand purchase behavior in estimating consumer brand preference. We account for heterogeneity in the cross-sectional model by using two measures of loyalty: one to capture differences across individuals and one to capture the time-varying changes within an individual. Our empirical results, based on scanner panel data for instant caffeinated coffee, support our hypotheses and our model specification. We conclude that accounting for consumer heterogeneity both in response to promotion and in brand and size loyalty improves both fit and predictive ability. 1991-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/1613 info:doi/10.1016/0167-8116(91)90010-5 https://ink.library.smu.edu.sg/context/lkcsb_research/article/2612/viewcontent/Individual_differences_consumer_1991_afv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Marketing
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Marketing
spellingShingle Marketing
ORTMEYER, Gwen
LATTIN, James M.
MONTGOMERY, David B.
Individual Differences in Response to Consumer Promotions
description This research hypothesizes important individual differences in response to promotions and tests for them using a cross-sectional multinomial logit choice model. Our hypotheses suggest interactions between individual brand preference and the effects of current promotion and past promotional purchase. To test for these interactions, we introduce a new method of measuring brand preference from past purchase data. The new method seeks to incorporate competitive purchase conditions as modifiers to observed brand purchase behavior in estimating consumer brand preference. We account for heterogeneity in the cross-sectional model by using two measures of loyalty: one to capture differences across individuals and one to capture the time-varying changes within an individual. Our empirical results, based on scanner panel data for instant caffeinated coffee, support our hypotheses and our model specification. We conclude that accounting for consumer heterogeneity both in response to promotion and in brand and size loyalty improves both fit and predictive ability.
format text
author ORTMEYER, Gwen
LATTIN, James M.
MONTGOMERY, David B.
author_facet ORTMEYER, Gwen
LATTIN, James M.
MONTGOMERY, David B.
author_sort ORTMEYER, Gwen
title Individual Differences in Response to Consumer Promotions
title_short Individual Differences in Response to Consumer Promotions
title_full Individual Differences in Response to Consumer Promotions
title_fullStr Individual Differences in Response to Consumer Promotions
title_full_unstemmed Individual Differences in Response to Consumer Promotions
title_sort individual differences in response to consumer promotions
publisher Institutional Knowledge at Singapore Management University
publishDate 1991
url https://ink.library.smu.edu.sg/lkcsb_research/1613
https://ink.library.smu.edu.sg/context/lkcsb_research/article/2612/viewcontent/Individual_differences_consumer_1991_afv.pdf
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