Which Categories and Brands to Promote with Targeted Coupons to Reward and to Develop Customers in Supermarkets

Soto, Ignacio Osuna; Gonzalez, J. Patrick; Capizzani, Mario

doi:10.1016/j.jretai.2015.12.002

Cited by 39 publications

(20 citation statements)

References 30 publications

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“…In 2017, 302 billion coupons for consumer packaged goods were distributed in the US [ 52 ]. Six studies evaluated coupons and reported coupons were associated with increases in overall purchase volume, impulse purchase volume, brand choice, and product trialing (first-time purchase), but not brand loyalty [ 53 , 54 , 55 , 56 , 57 , 58 ]. Two studies assessed customized coupons, which target consumer groups based on demographic characteristics or past shopping behavior, and found they were associated with increased purchasing of targeted products [ 54 , 56 ].…”

Section: Resultsmentioning

confidence: 99%

“…Two studies assessed customized coupons, which target consumer groups based on demographic characteristics or past shopping behavior, and found they were associated with increased purchasing of targeted products [ 54 , 56 ]. Coupons in some product categories may be more impactful than others: one study found that coupons led to greater product trialing when promoting leading brands and categories that were popular, easy to store, had fewer products in the category (easier for customers to process less options), and were frequently on sale [ 55 ]. Another study found that while customized coupons led to increased purchases for both healthy and unhealthy products, they were more effective for unhealthy products [ 54 ].…”

Section: Resultsmentioning

confidence: 99%

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Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

Hecht

Perez

Polascek

et al. 2020

IJERPH

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The retail food environment plays an important role in shaping dietary habits that contribute to obesity and other chronic diseases. Food and beverage manufacturers use trade promotion—incentives paid to retailers—to influence how products are placed, priced, and promoted in stores. This review aims to: (1) catalogue trade promotion practices that manufacturers use to influence retailer marketing strategies, and (2) describe how these retailer marketing strategies affect consumer purchasing behavior and attitudes. Researchers searched five databases, Academic Search Ultimate, Business Source Ultimate, PsycINFO, PubMed, and Web of Science, to identify literature from industry and academic sources published in English through November 2019. Twenty articles describing manufacturer trade promotion practices were synthesized and provided insight into four types of trade promotion practices: category management, slotting allowances, price discounts, and cooperative advertising. Fifty-four articles describing the impact of retailer marketing on consumers were synthesized and graded for quality of evidence. While comparison across studies is challenging, findings suggest that retailer marketing strategies, such as price promotions and prominent placement, lead to increased sales. Results can guide efforts by policymakers, public health practitioners, and food retailers to design retail environments that improve healthy eating while maintaining retailer financial interests. Additional research should measure the impact of retailer marketing strategies on consumer diet quality and retailer outcomes (e.g., return-on-investment).

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

Hecht

Perez

Polascek

et al. 2020

IJERPH

View full text Add to dashboard Cite

show abstract

“…Unit share refers to the percentage of a product's unit sales in the total unit sales of the category to which it belongs (Osuna, González, & Capizzani, 2016). Compared with other products, products with higher unit shares may have already been purchased by many consumers.…”

Section: Product Characteristicsmentioning

confidence: 97%

Estimating Promotion Effects Using Big Data: A Partially Profiled LASSO Model With Endogeneity Correction

et al. 2018

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“…Unit share refers to the percentage of a product's unit sales in the total unit sales of the category to which it belongs (Osuna, González, & Capizzani, ). Compared with other products, products with higher unit shares may have already been purchased by many consumers.…”

Section: Related Literaturementioning

confidence: 99%

Estimating Promotion Effects Using Big Data: A Partially Profiled LASSO Model with Endogeneity Correction*

et al. 2019

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Retailers are interested in understanding which price promotions are profitable and which are not. However, simultaneously estimating the promotion effects of a large number of products on retailer sales and profits is technically challenging for both researchers and practitioners. To address this challenge, this study proposes a Partially Profiled Least Absolute Shrinkage and Selection Operator (Partially Profiled LASSO) model, which can estimate ultra‐high‐dimensional regression relationships at a low computational cost and control for the endogeneity of promotion depth. The model can flexibly incorporate the time‐varying promotion effects and the cross‐over effects among the promotions of different products. We conduct an empirical study using data provided by a large retailer over a 5‐month period. Our model efficiently identifies products with promotion effects and the promotion effects are significantly associated with certain promotion, product, and category characteristics. The results also show that our model with cross‐over effects outperforms the benchmark models that are widely used to handle the high‐dimensional predictor matrix (e.g., the standard LASSO and principal component regression methods). This article contributes to the related literature on price promotion and marketing analytics in data‐rich environments, and provides implications for retailers to make more informed promotion strategies.

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Which Categories and Brands to Promote with Targeted Coupons to Reward and to Develop Customers in Supermarkets

Cited by 39 publications

References 30 publications

Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

Estimating Promotion Effects Using Big Data: A Partially Profiled LASSO Model With Endogeneity Correction

Estimating Promotion Effects Using Big Data: A Partially Profiled LASSO Model with Endogeneity Correction*

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