Evaluating the Effectiveness of Retailer-Themed Super Saver Events

Abstract

In response to pressure to defend their stand sales against discounters, grocery retailers started engaging in retailer-themed super saver events: promotional events (1) specific to the retailer, in which they (2) mass advertise (3) unusually deep, immediate deals (4) across a broad range of categories (5) under a common savings theme and deal format. Given these characteristics, such events are expected to generate higher awareness and interest than typical day-to-day promotions, thereby enhancing visits and purchases during the event but also reducing them before and after. The authors evaluate these effects by analyzing 44 retailer-themed super saver events operated by the largest Dutch grocery retailers over four years. They find a substantial increase in visits and total purchases during the event, especially among nonprimary customers and hard-discount shoppers. The larger part of this lift stems from the use of an overarching event theme. Consumers buy less in anticipation of the event and visit the store more often afterward, but for smaller baskets—typically leading to a null effect in terms of profit. Finally, our results suggest that rather than the deal depth or advertising budget, the number of items and media resonance of the theme are key drivers of event success.

Cooperative advertising in competing supply chains and the long-term effects of retail advertising

“…It can take positive values (α > 0) when the type of local advertising activities undertaken contribute to stimulating repeat purchase. Finally, it can also take negative values (α < 0) when local advertising damages product preference and quality perception over time (Ataman et al, 2010;DelVecchio et al, 2006;Herrington and Dempsey, 2005;Guyt and Gijsbrechts, 2020). This is based on empirical evidence that advertising and promotion activities impact the consumer utility intercept over time (Sriram et al, 2007).…”

The Impact of Forced and Reinforced Channel Migration Strategies on Churn: Evidence from a Quasi-Natural Experiment

“…The conditional channel choice model is estimated only on the subset of observations (1) for customers who had only one contact with the firm during the migration stage, to represent better the net effect of that particular channel migration strategy, and (2) for those customers who did not churn during the analysis period. To correct for the selection issue (i.e., the nonrandom occurrence of the customer-initiated contacts outside of the forced and reinforced migration periods), following Guyt and Gijsbrechts (2020), we employ the Dubin and McFadden (1984) approach and use the probability not to churn (P it ), predicted from the churn model, to calculate the selection correction term τ log (P it ) + (1− P it )×log (1−P it ) P it .…”

“…The conditional channel choice model is estimated only on the subset of observations (1) for customers who had only one contact with the firm during the migration stage, to represent better the net effect of that particular channel migration strategy, and (2) for those customers who did not churn during the analysis period. To correct for the selection issue (i.e., the nonrandom occurrence of the customer-initiated contacts outside of the forced and reinforced migration periods), following Guyt and Gijsbrechts (2020), we employ the Dubin and McFadden (1984) approach and use the probability not to churn (P it ), predicted from the churn model, to calculate the selection correction term τ [ log 0.2em false( P normalit false) + ( 1 − 0.25em normalP it ) × log ( 1 − normalP it ) P normalit ]. The vector of control variables X controls includes dummies for online and mobile channels, two-way interactions (channel × migration stage, channel × preference for the phone channel), three-way interactions (channel × migration stage × preference for the phone channel), customer age in years, the length of the customer–firm relationship in years, the number of customer-initiated contacts during the analysis period, dummy for the first-year contract, dummies for the product type, two-way interactions (product × channel), and time since the last customer-initiated contact with the firm in days.…”

Hard Discount Formats Service Quality Assessment Model in Colombia

“…At the international level, studies related to the impact of hard discount stores on the economy and consumers in Ecuador [1], their evolution in Germany [2], the defensive strategies of traditional businesses against hard discount formats in the Netherlands [3], the impossibility of conquering the Chinese market [4], among others; however, no studies were found evaluating the quality of the service of these formats.…”