Download marketing - Personal.psu.edu

Consumer Behavior
Sales promotion programs
Consumer response to
sales promotion programs
Consumer Behavior
Sales promotion programs
Outline
•
•
•
•
•
Definition of sales promotion
Types of sales promotions
Benefit-congruency model of sales promotions
Instrumental conditioning and sales promotions
Behavioral influence strategies
Consumer Behavior
Sales promotion programs
Sales promotions
• directed at either marketing intermediaries or
consumers;
• designed to affect behavior directly (not
through intervening mental processes);
Manufacturer
Consumer
promotions
Trade promotions
Consumer
Trade
Retailer
promotions
Consumer Behavior
Sales promotion programs
Types of consumer promotions
• coupons: different types of coupons;
• sampling: full- or trial-size products delivered
via direct mail, print media, door to door, in or on
packages, etc.;
• premiums: goods or services offered free-in-themail or in self-liquidating form or in-, on-, or nearpack;
• price-offs: reduction in a brand’s regular price by
about 10 to 25 percent;
• bonus packs: offer of extra quantities of the
product at the regular price;
Consumer Behavior
Sales promotion programs
Types of consumer promotions (cont’d)
• refunds and rebates: cash discounts or
reimbursements for the purchase of packaged
goods or durable goods;
• sweepstakes and contests: opportunity to win
cash, merchandise, travel prizes, etc. purely on the
basis of chance or for solving the contest problem;
• overlay and tie-in promotions: use of multiple
sales promotion tools (combination programs) and
promotion of multiple brands by the same (intracompany pooling) or different (inter-company tieins) manufacturers (joint or group promotions);
Consumer Behavior
Sales promotion programs
Types of retail promotions
• price discounts: reduction of regular price,
“2 for” or “3 for”, etc.
• displays: end-of-aisle, front-of-the-store, in-aisle,
shelf-talker and other POP displays;
• feature advertising: announcements of specials
in local newspapers or circulars (e.g., on “Best
food days”), often paid for by co-op or advertising
allowances;
• other promotions: “in-ad” coupons, special
financing charges, premiums/contests, free goods,
free trial, etc.
Consumer Behavior
Sales promotion programs
Benefit-congruency model of
sales promotions
• Benefits offered by sales promotions
– Utilitarian benefits
– Hedonic benefits
• Benefit congruency
– Basic idea
– Moderating influence of brand equity
Consumer Behavior
Sales promotion programs
Sales promotion benefits
Utilitarian
Savings
Quality
Hedonic
Convenience
Value
expression
Entertainment
Exploration
Consumer Behavior
Sales promotion programs
Sales promotion benefit matrix
high
H
e
d
o
n
i
c
b
e
n
e
f
i
t
s
Free gifts
Free product offers
Sweepstakes
Coupons
Rebates
low
Utilitarian benefits
Price reductions
high
Consumer Behavior
Sales promotion programs
Instrumental (operant) conditioning
stimulus
situation
organism
R1
R2
Rx
R4
R5
reinforcement
the likelihood that Rx
will be emitted again
in the same stimulus
situation increases
Basic idea: Behavior is a function of its consequences!
Consumer Behavior
Sales promotion programs
Instrumental conditioning (cont’d)
• instrumental conditioning (IC) involves learning of
relationships between responses and their consequences;
• IC deals with operant behaviors (i.e., usually voluntary
responses that are emitted because of the consequences
they produce);
• pleasant or unpleasant consequences can be used in IC;
• consequences can be administered according to different
schedules of reinforcement;
• immediate reinforcement is usually more effective than
delayed reinforcement;
• complicated behaviors can be learned through shaping;
Consumer Behavior
Sales promotion programs
Types of consequences used in IC
response causes [(un)pleasant] consequence to be
presented
removed
increase of
target behavior
positive
reinforcement
negative
reinforcement
decrease of
target behavior
positive
punishment
negative
punishment
response
influence
Consumer Behavior
Sales promotion programs
Consequence strategies for promoting
safety belt use (Geller et al. 1982)
Response based:
• vehicle voice-synthesizer responds with “Thank you” upon buckling;
• aversive buzzer in vehicle avoided by buckling up;
• child receives reprimand from parent when observed sitting next to an
unused safety seat;
• child loses TV privileges when refusing to sit in child safety seat;
Outcome based:
• car raffled off when 70% belt usage reached at a plant;
• severe injury avoided as a result of being buckled in a collision;
• employee receives letter of reprimand from corporate safety office
when observed unbuckled;
• teenager loses driving privileges when parent observes him unbuckled;
Consumer Behavior
Sales promotion programs
Schedules of reinforcement
• continuous reinforcement schedules:
every occurrence of the response of interest is
reinforced;
• intermittent (partial) reinforcement schedules:
only some of the responses of interest are reinforced;
• ratio vs. interval schedules (frequency of
reinforcement depends on either the rate at which
responses are emitted or the passage of time);
• fixed vs. variable schedules (reinforcement is
administered either regularly or probabilistically);
Consumer Behavior
Sales promotion programs
Examples of reinforcement schedules
in a promotional context
• a rebate is offered for each purchase of a product;
• get a free frozen yoghurt with 10 proofs of
purchase;
• scratch-off coupon with a chance of winning a free
drink (probability of winning is 1 in a 1000);
• 10% off on one purchase a month;
• special deals are available when a particular light
in the store is on, with the light turned on every
couple of hours on average;
Consumer Behavior
Sales promotion programs
Behavioral influence strategies
• foot-in-the-door technique: based on the notion that once a
person has been induced to comply with a small request, (s)he
is more likely to comply with a larger demand; the theoretical
rationale for this effect may be found in self-perception
theory, which argues that people infer their attitudes from
self-observation of their own behavior;
• door-in-the-face technique: based on the notion that initial
noncompliance with an extreme demand may increase
subsequent compliance with a more moderate request; the
effect can be explained by assuming that the second request is
perceived as a concession which creates normative pressures
to reciprocate;
Consumer Behavior
Sales promotion programs
On inducing compliance with requests
(Reingen)
• 224 students at the University of South Carolina were
approached by volunteers of the Heart Association with a
request to make a donation;
• the following types of requests were investigated:
– donation request only: direct request for a donation;
– small-then-donation request: first request to answer four short
questions as part of a survey (e.g., have you heard of the Heart
Association?), then request for a donation;
– extreme-then-donation request: first request to pledge 3 $ per
month for a year, then request for a donation;
– even-a-penny condition: direct request for money, with addition
that “Even a penny will help”;
– small-then-donation and extreme-then-donation requests with
addition of even-a-penny condition;
Consumer Behavior
Sales promotion programs
Inducing compliance with requests (cont’d)
percent
total
average
compliance donations donations
donation-request only
small-then-donation request
extreme-then donation request
even-a-penny
small-then-donation request,
even-a-penny
extreme-then-donation request,
even-a-penny
19
34
34
47
3.07
6.50
6.75
4.64
0.51
0.59
0.61
0.31
50
7.20
0.45
44
5.60
0.40