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The Effect of Sales Promotions on the Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions 作作 :SURESH RAMANATHAN and SANJAY K. DHAR 指指指指 : 指指指 指指 指指 : 指指指
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Page 1: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

The Effect of Sales Promotions on the Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions

作者 :SURESH RAMANATHAN and SANJAY K. DHAR

指導教授 : 胡凱傑 老師 學生 : 黃鳳儀

Page 2: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

Introduction

目的 瞭解促銷如何影響個體消費者的反應。 銷售促銷 (sales promotions) 如何影響購物

籃 (shopping basket) 的大小與組合。

Page 3: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

Introduction

The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their baskets.

Drawing on the theory of regulatory focus (Cesario, Grant, and Higgins 2004; Higgins 1998) and consumer mind-sets (Dhar, Huber, and Khan 2007; Gollwitzer, Heckhausen, and Steller 1990) the framing of the coupon savings message (“Save $x”

versus “Get $x Off”) the expiration date restriction cue on the coupon

(expiring same day versus expiring two weeks later). We also show that brands in a store may be a

source of regulatory compatibility.

Page 4: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND 調節焦點理論 (Higgins 2000; Higgins et al.

1994) 指出消費者有不同的動機系統,此系統會指引消費者行為至想要的結果。 朝向正面的結果 促銷焦點 (promotion focus) 避免負面的結果 預防焦點 (prevention focus)

Page 5: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

1. Marketing Cues as Independent Primes of Regulatory Focus

零售商如何提供銷售促銷及消費者購買的品牌可以操弄調節導向,獨立於消費者事先存在的調節導向。

Page 6: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND(1) Framing of sales promotions as regulatory

cues The savings message in sales promotions

offers with savings messages framed as “Get $x off” or BOGO prime a promotion focus.

offers framed as “Save $x” prime a prevention focus

Another component of sales promotions is expiration date limits (“offer expires _____”) Consumers who anticipate short-term regret are more likely

to purchase promoted items (Abendroth and Diehl 2006;Inman and McAlister 1994).

Unrestricted offers or offers with a longer expiration date window are less likely to engender short-term regret (Abendroth and Diehl 2006).

sales promotions with a longer expiration date are likely to activate a promotion focus, whereas those with immediate expiration dates are likely to activate a prevention focus

Page 7: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

(2) Type of brand as regulatory cue Such differences in judgments about

products stem preferences for safe or low-risk choices and

for stability over change when people adopt a prevention focus (Aaker and Lee 2001; Liberman et al. 1999)

Choices that reflect creative or risky decision making when people take a promotion focus (Aaker and Lee 2001; Friedman and Foster 2001; Liberman et al. 1999).

consumers to associate less familiar brands with constructs related to a promotion focus and well-known brands with constructs related to a prevention focus.

Page 8: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

2. Compatibility Among Multiple Sources of Activation

The effects of compatibility between regulatory focus and message cues.

How the regulatory orientations that marketing cues induce might interact, independent of regulatory focus.

Page 9: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

(1) Cue compatibility with regulatory orientation.

Message cues compatible with a regulatory orientation lead to greater persuasion (Aaker and Lee 2001, 2006; Zhao and Pechmann 2007), a greater willingness to pay for relevant products (Avnet and Higgins 2003, 2006), and greater motivational intensity (Forster et al. 2001).

Brand type can be a regulatory cue.

•promotion focus compatible with sales promotions framed as gains, and with promotions that have longer expiration dates.•prevention focus compatible with promotions framed as nonlosses, and with those that have short expiration dates.

•promotion focus to be more willing to include less familiar brands in their shopping baskets.•prevention focus should favor well-known brands.

Page 10: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

(2) Compatibility between cues Lee and Aaker (2004, Experiment 3)

manipulate perceived risk and message frame (gain or loss) in an advertisement and find that the gain frame was more effective for low perceived risk and the loss frame was more effective for high perceived risk.

people who receive a gain-framed coupon or one with a longer expiration date to be more willing to include less familiar brands in their shopping basket than people who receive a coupon framed as a nonloss or one with an immediate expiration date, who instead will favor purchases of well-known brands.

Page 11: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

3. Effects on Size and Composition of Shopping Basket

Dhar, Huber, and Khan (2007) propose that consumers initially approach a shopping situation with a deliberative mind-set, trying to decide what to buy. However, when they make an initial purchase, they shift to an implemental mind-set that makes them more receptive to additional, unrelated purchases. The authors term this the shopping momentum effect.

An activated regulatory orientation not only guides an initial choice but also spreads to other, unrelated decisions.

Page 12: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

• Consumers’ regulatory focus interacts with the savings message frame of a sales promotion to influence overall basket size, such that those experiencing regulatory compatibility (promotion focus with gain-framed promotion; prevention focus with nonloss-framed promotion) add more items to their basket than those not experiencing such compatibility.

H1

• Consumers’ regulatory focus interacts with the expiration date restrictions on a sales promotion to influence overall basket size, such that those experiencing regulatory compatibility (promotion focus with longer horizon promotion; prevention focus with shorter horizon promotion) add more items to their basket than those not experiencing such compatibility.

H2

Page 13: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

• Consumers’ regulatory focus interacts with the type of brand, such that a greater number of (a) well-known brands are chosen with a prevention focus rather than a promotion focus and (b) less familiar brands are chosen with a promotion focus rather than a prevention focus.

H3

• The framing of the coupon savings message interacts with the type of brand, such that a greater number of (a) wellknown brands are chosen when coupons are framed as nonlosses rather than gains and (b) less familiar brands are chosen when coupons are framed as gains rather than nonlosses.

H4

Page 14: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

THEORETICAL BACKGROUND

• The expiration date restriction on a sales promotion interacts with the type of brand, such that a greater number of (a) well-known brands are chosen when the coupon has an immediate expiration date rather than a longer horizon and (b) less familiar brands are chosen when the coupon has a longer time horizon rather than an immediate expiration date.

H5

Page 15: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1…

We manipulate regulatory focus and the savings message frame but hold the expiration date restrictions constant.

We test the effects on both basket size and composition (well-known versus less familiar brands).

Page 16: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Participants. 116 undergraduate students (18–25 years of

age; 61 male, 55 female) at the University of Chicago participated for compensation of $3 each.

Participants had lived an average of 18.4 years in the United States, and their average monthly grocery bill was $36.

Page 17: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Procedure. 2 (regulatory focus: promotion versus prevention)

× 2 (savings message frame: nonloss versus gain) × 2 (brand: well-known versus less familiar) mixed factorial design, with type of brand as a repeated measure.

Page 18: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Save $1.50

Get $1.50 off

on any 3-pack of Sparkle paper towelsregular price

$3.00

on any 3-pack of Sparkle paper towelsregular price

$3.00

Page 19: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Testing of the manipulation of regulatory focus and message frame as independent sources of regulatory orientation.

Eight words pertained to ideals and 8 to oughts, 16 were neutral in content, and 32 were not words.

Page 20: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Activation of regulatory orientation. MANOVA

The results showed significant main effects for regulatory focus and the savings message.

The interaction between the regulatory focus and savings message frame was not significant.

Univariate tests Facilitation scores for ideal-related words were

higher when participants had a promotion focus and when the coupon was gain framed.

Facilitation scores for ought-related words were higher when participants had a prevention focus and when the coupon was nonloss framed.

Page 21: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Negative binomial regression on the number of well-known brands chosen

showed a significant, positive effect of facilitation scores (logarithmically transformed) for ought-related words and a significant, negative effect for ideal-related words.

on the number of less familiar brands participants chose showed a significant, positive effect of the logarithmically transformed facilitation scores for ideal-related words. However, the effect of facilitation scores for ought-related words was not significant.

Page 22: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Pretest to determine whether type of brand purchased acts as a regulatory cue.

•How similar it was to what they normally purchased•How much they would consider the brand a safe choice

prevention focus

•How novel the brand would be compared with what they normally purchased•How much the brand would satisfy a need for variety for that participant.

promotionfocus

Page 23: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Method

Omnibus test showed a significant effect of the type of

brand Univariate tests

less familiar brands were rated higher on the promotion focus dimension

well-known brands were rated higher on the prevention focus dimension

Page 24: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Results

Size and composition of basket.

支持H1

Interaction between regulatory focus and message frame

Page 25: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Results

interaction between regulatory focus and type of brand

支持H3a & H3b

Page 26: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Results

interaction between message frame and type of brand

支持H4a & H4b

Page 27: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 1- Discussion

Promotion focus, gain-framed coupons, and less familiar brands are all associated with increased facilitation for ideal-related words.

Prevention focus, nonloss-framed coupons, and well-known brands are all associated with increased facilitation for ought-related words.

Page 28: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2…

First, we use a BOGO instead of a discount offer.

Second, we manipulate the temporal restriction for the offer, which expires either the same day or in two weeks.

Third, we measure it using a chronic accessibility paradigm(長期易受影響的範例 ).

Fourth, to test the findings’ generality, the promotion features a well-known brand, Bounty paper towels, rather than a less familiar one.

Page 29: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Method

Participants 95 undergraduate students (18–29 years

of age; 44 male, 51 female) at the University of Chicago participated in this computer-mediated study in exchange for compensation of $3. On average, participants spent $37 monthly on groceries.

Page 30: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Method

Procedure we first informed participants that they would be

completing a questionnaire on their self-concepts as consumers. Participants received descriptions of ideal and ought selves and listed up to six attributes they would ideally like to possess or ought to possess.

To simplify the exposition, we computed a regulatory strength score by subtracting response times for ideals from those for oughts. Positive values on this measure indicated a high promotion focus and negative ones a high prevention focus.

Page 31: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Method

Buy One, Get One Freeany one 3-roll package of Bounty paper towels

Buy One, Get One Freeany one 3-roll package of Bounty paper towels

Regular price ($3)

Regular price ($3)

截止日期 :6/8

截止日期 :6/22

Page 32: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Results

Manipulation check A one-factor MANOVA on present and future

orientation showed a significant effect of type of restriction. Participants who saw the “today” frame were more likely

to believe that the advertisement made them think of things they planned to do today than those who saw the “2 weeks” frame.

A MANOVA of gain and nonloss conditions showed a significant effect of type of restriction. Participants who saw the “2 weeks” frame reported that

the advertisement made them think of getting a good deal, more so than those who saw the “today” frame.

Page 33: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Results

Size and composition of basket

支持H5a & H5b

Page 34: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Results

支持H2

Page 35: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Results

支持H3b

Page 36: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT 2- Discussion prevention-focused participants led to

greater goal compatibility with time-restricted offers, resulting in more unpromoted items in the basket. The increased choice of well-known brands drove this effect.

promotions with a longer time horizon led to increased sales of unpromoted items. However, unlike the effects for prevention-focused participants, the increased choice of less familiar, rather than well-known brands.

Page 37: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3…

First, we use a coupon handed out at the store entrance.

Second, instead of promoting a specific brand, we offer a generic discount on the total basket, as long as the amount exceeds a specific limit.

Finally, we use a different manipulation of regulatory focus, in view of obvious difficulties of getting customers to write essays or measuring their response times in a real-world setting.

Page 38: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Method

Participants 212 participants conducting their normal

shopping at a neighborhood grocery store were given an opportunity to earn a discount of $5 on their purchases in the store. 123 of these participants redeemed the coupon.

Page 39: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Method

Procedure As shoppers entered the store, they were

met by a research assistant, who was blind to the purpose of the study, and greeted with one of two scripts.

Each coupon was framed as either “Save $3 on any purchase over $10” or “Get $3 off any purchase over $10.” We manipulated the coupon expiration date restriction cue as “Offer expires today” or “Offer valid all week”

Page 40: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Results

Size of basket We used a generalized linear negative

binomial model with a log link to estimate the effects of the three factors and their interactions.

These results were qualified by three significant two-way interactions.

Page 41: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Results

Interaction between regulatory focus and the coupon savings message frame . Participants in the prevention focus

condition added more items to their baskets when they received a coupon framed as “Save $x” (nonloss).

Participants in the promotion focus condition added more items to their baskets when they received the “Get $x Off” coupon.

in support of H1.

Page 42: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Results

Interaction between regulatory focus and the expiration date. Participants in the promotion focus

condition added more items to their basket when they received a coupon with a longer expiration date.

Participants in the prevention focus condition added more items when they received a coupon that expired the same day

in support of H2.

Page 43: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Results

Interaction between the savings message frame and expiration date restriction of the coupon. Participants who received the “Get $x Off”

coupon added more items to their baskets when the coupon had a longer time horizon.

We found no difference in the number of items added with the “Save $x” coupon for the immediate expiration date versus the longer time horizon.

Page 44: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

EXPERIMENT3- Discussion The framing of the savings message and

expiration date restrictions of the coupon not only helped accentuate or attenuate the effects of the regulatory orientation shoppers might bring into the store but also acted as independent sources of a regulatory orientation and primed behaviors consistent with a promotion or prevention focus.

Page 45: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

GENERAL DISCUSSION

These cues not only serve to reinforce or attenuate shoppers’ promotion or prevention foci but also act independently of such regulatory foci to guide behavior.

Shoppers experiencing compatibility between a cue and their regulatory orientation or among multiple cues are likely to add more unpromoted items to their baskets.

Page 46: :. (sales promotions) (shopping basket) The compatibility with regulatory orientation, causes people to add more items, even unpromoted ones, to their.

GENERAL DISCUSSION

we examine the effects of sales promotions on the size and composition of the market basket and thus take a retailer’s rather than a manufacturer’s perspective.

our research highlights the importance of the consumers’ orientation (promotion versus prevention) as an influence on individual differences in their responsiveness to promotions.

our research focuses on two important design variables for promotions.


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