In this article, the authors examine consumers’ behavior with respect to expiration dates for grocery store perishable products. A better understanding of such behavior can both guide efforts to educate consumers about the risks associated with perishables that are approaching their expiration dates and help managers implement effective promotional strategies for these products throughout the course of their shelf lives. Both of these approaches can help reduce waste due to spoilage.
This article studies the impact of in-store "surprise" coupons (e.g., electronic shelf coupons, peel-off coupons) on consumers' total basket of purchases. A conceptual model is developed that (1) predicts that the use of a surprise coupon will increase the size of the shopping basket and the number of unplanned purchases made on the shopping trip and (2) predicts the type of these unplanned purchases. The authors present the results of an in-store experiment and analysis of the Stanford Market Basket Data to test these predictions.
The authors examine how brand preferences and response to marketing activity evolve for consumers new to a market. They develop a theoretical framework that begins with a consumer's first-ever purchase in a product category and describes subsequent purchases as components of sequential purchasing stages. The theory is based on the notion that choices made by consumers new to a market are driven by two competing forces: consumers' desire to collect information about alternatives and their aversion to trying risky ones. These forces give rise to three stages of purchasing: an information collection stage that focuses initially on low-risk, big brand names; a stage in which information collection continues but is extended to lesser-known brands; and a stage of information consolidation leading to preference for the brands that provide the greatest utility. The authors use a logit-mixture model with time-varying parameters to capture the choice dynamics of different consumer segments. The results show the importance of accounting for product experience and learning when studying the dynamic choice processes of consumers new to a market. Insights from this study can help marketers tailor their marketing activities as consumers gain purchasing experience.
The authors examine factors that affect product-usage compliance, or the act of using a product as it is intended to be used. They develop a conceptual model of compliant behavior as a function of four main constructs: (1) salience/mindfulness, (2) the consumer's costs and benefits of compliant behavior, (3) advertising and distribution cues to action, and (4) the perceived threats associated with noncompliant behavior. They test the model using a regression mixture model of compliant behavior calibrated on unique panel data from four categories of pharmaceutical drugs that are used to treat chronic (i.e., lifelong) ailments. The findings include insights into the dynamics of product compliance: The data support the proposed four-stage evolution of compliant behavior between consecutive service provider (e.g., doctor) interventions. For marketers, the authors find substantial heterogeneity across consumers for the effects of cues from advertising and distribution. For example, in some segments, advertising has a positive impact on compliance (directly and/or by heightening responsiveness to product-efficacy evaluations), whereas in other segments, its effect is negative. Thus, the authors shed new light on the effects of advertising, which has both strong advocates and opponents in the pharmaceutical industry. Determinants of Product-Use Compliance BehaviorCompliance is the conformity or adapting to another person's wishes, to a rule, or to necessity. Areas of interest regarding compliance and its applications to consumer marketing include compliance with social programs and with a product's intended use. In professional services contexts such as health care, lack of compliance can negatively affect manufacturers, service providers, and users (The Wall Street Journal 2003). For manufacturers, noncompliance can lower a product's perceived performance, thus leading to decreased consumer satisfaction. In pharmaceuticals, the loss in future sales due to brand switching and negative word-of-mouth as a result of perceived product failure caused by noncompliance has been estimated to cost companies $15 billion to $20 billion annually (Beavers 1999).
PurposeThis paper aims to investigate the impact of in‐store sample promotions of food products on consumer trial and purchasing behavior. The authors investigate differences in the trial rate for free samples across different products and consumer types, as well as the impact of sampling on product and category purchase incidence. The results of this study are relevant for retailers and manufacturers who invest in in‐store free sample promotions.Design/methodology/approachThe authors use data from a field study, which leveraged an actual free‐sample program implemented by a US grocery store chain. Data was collected on six different products promoted by in‐store free samples over six different weekends. The data collected included consumers' trial and purchasing behavior with respect to the free sample, as well as their attitudes towards the free sample that day and free sample promotions in general.FindingsFree sampling is very effective in inducing trial, especially among lower educated consumers. For consumers who are planning to buy the product in the promoted category, free sampling can encourage switching from the planned to the promoted brand. For consumers who do not have such previous plans, free sampling can “draw“ them into the category and encourage category purchase. Samplers' interactions with the person distributing the sample or with other samplers at the scene also seem to boost post‐sample purchase incidence.Originality/valueDespite the importance of free samples as a promotional tool, few studies have examined consumer trial and purchasing behavior with respect to in‐store free samples. This paper presents one of the first known field studies that examines this topic.
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