Competitive advertising within store flyers: A win–win strategy?

Abstract

This study investigates the effect of competitive advertising within store flyers on both manufacturers and retailers. Prior research implies that competitive advertising may be detrimental for manufacturers and beneficial for retailers. Findings from an intersubject experiment that uses various familiar and unfamiliar competing brands confirm that store flyers' competitive advertising improves consumers' perceptions of the variety of the retailer's assortment, which has a positive impact on intentions to visit the store and buy.However, increasing the number of competing brands does not harm manufacturers; rather, it enhances recognition of brands, especially for well-known brands. This article concludes with a discussion of the theoretical and managerial implications of these findings for the design of store flyers.

Retail shopper marketing: the future of promotional flyers

“…This view is confirmed in the literature (Volle, 1997;Arnold et al, 2001;Mimouni-Chaabane et al, 2010). Manufacturers, on the other hand, say that flyers are crucial because they are "one of the few opportunities for customers to be closely exposed to the product, its shape, colour, brand name, in relative isolation from competitors in the category" (category manager-manufacturer and market analyst) and by funding flyers they foster good relationships with retailers.…”

Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households

“…Store flyers are a source of marketing contributions from manufacturers who also rely heavily on them to reach consumers directly (Srinivasan et al, 1995;Volle, 1997). Thus, promotions featured in store flyers represent two sources 2 , manufacturers and retailers, who pursue different objectives (Mimouni-Chaabane et al, 2010). Manufacturers are mainly interested in the attractiveness of their specific offer, seeking for an increase of brand purchases.…”

“…Although several studies have examined the impact of feature advertising on consumer behaviour (Che et al, 2007;Gedenk and Neslin, 1999;Niraj et al, 2008;Pancras and Sudhir, 2007), relatively few have specifically examined promotions advertised through store flyers (Chiang, 1991;Gijsbrechts et al, 2003;Gupta, 1988;Mimouni-Chaabane et al, 2010;Miranda and Kónya, 2007;Luceri et al, 2014;Schneider and Currim, 1991;van Heerde et al, 2004). The majority of extant studies have focused on advertisements published in newspapers or on in-store feature advertising (Pieters et al, 2007), which probably reflects the fact that these are the principal distribution vehicles for feature advertisements in the United States and Europe (Gázquez-Abad et al, 2014;Jensen et al, 2014).…”

How store flyers design affect perceived variety of retailers’ assortment

“…Store flyers influence preferences and behaviors along stages of the buying cycle (Gázquez-Abad and Martínez-López, 2016;Mimouni Chaabane et al, 2010), but they have disparate time differentials (e.g., short, medium, and long). In the short term, most consumers purchase products that meet daily needs, with advertisements in a store flyer as a way to make consumers aware of both products being promoted and price reductions (or not), increasing intentions to visit and improve the flow of consumers in a store and encouraging consumption not only of promoted products, but also unpromoted ones (Burton et al, 1999;van Lin and Gijsbrechts, 2016).…”

“…In the short term, most consumers purchase products that meet daily needs, with advertisements in a store flyer as a way to make consumers aware of both products being promoted and price reductions (or not), increasing intentions to visit and improve the flow of consumers in a store and encouraging consumption not only of promoted products, but also unpromoted ones (Burton et al, 1999;van Lin and Gijsbrechts, 2016). One way to meet medium-and longterm goals is to inform consumers about an assortment of products they can purchase at a store (Mimouni Chaabane et al, 2010), which fosters customer loyalty and associates with greater consumer satisfaction (Gázquez-Abad et al, 2015). Offering a wide variety of items is the traditional way retailers add value to assortment, but this traditional objective has been questioned by continual increases in operating costs and inventory management (Chang, 2011), and success of chains that reduce assortments at a good price (e.g., ALDI) (Oppewal and Koelemeijer, 2005).…”