on a cents-off deal would be less likely to repurchaseit when the deal was retracted than those initiallypurchasing without the benefit of a deal.As expected (H,), individuals who switched brandsto take advantage of a cents-off deal were less likelyto repurchase that brand on their next purchase occa-sion than those in the no-deal comparison who pre-viously switched without an incentive. Although thiseffect was observed for both margarine and flour,it reached conventional levels of statistical significanceonly for margarine (Table 5). Further, people whohad purchased a brand and then repurchased it ona cents-off deal were less loyal to that brand afterthe deal was retracted than those who purchased itwithout an incentive, regardless of whether the productcategory was margarine or flour (Table 5).Table 4EFFECTS OF A MEDIA-DISTRIBUTED COUPON ON SUBSEQUENT SWITCHING RELATIVE TO NO DEAL FOR MARGARINEAND FLOUR, CATEGORIZED BY SWITCHING AND LOYALTY TRANSACTIONSTransactiontypeSwitchingLoyalty'Significant at"Significant at.01 level..05 level.ProductcategoryMargarineFlourMargarineFlourProbabilityofrepeatpurchase of brandDealtransactions13%(n= 671)16%(n = 58)51%(/I = 164)44%(fi = 9)No-dealcomparison28%36%77%74%(n= 23,794)(n= 6,478)(n=29,253)(n= 8,848)Zscore fordeal-no dealcomparisonZ = 8.55*Z = 3.17"Z = 7.86'Z = 2.05"
78JOURNALOFMARKETING RESEARCH, FEBRUARY1978Table5EFFECTSOFCENTS-OFF PACKAGEONSUBSEQUENT SWITCHING RELATIVETO NODEALFORMARGARINEANDFLOUR, CATEGORIZEDBYSWITCHINGANDLOYALTY TRANSACTIONSTransactiontypeSwitchingLoyalty'SignificantatProductcategoryMargarineFlourMargarineFlour.05 level.ProbabilityDealtransactions13%(n=34%(n=62%(n=62%(n=--649)=187)=189)=149)of repeat purchaseNo-dealcomparison28%(/I =23,794)36%(n =6,478)77%(n =29,253)74%(/I =8,848)Zscore fordeal-no dealcomparisonZ=8.41°Z =.56Z=4.86-Z=4.46''Package coupon.^Thepackage coupon requiressubstantial efforttoredeemincomparison with cents-off dealsand hasrelativelyloweconomic value.Itwas predicted that individuals who redeemed this typeof deal wouldbelikelytoattribute their behaviortoapositive disposition towardthebrand purchasedand therefore wouldbemore loyalto thebrand afterthe package coupon dealwasretracted than whenno deal motivated purchase(H^).For both product categories,thedata indicate thatindividualswhopurchasedabrandandthen repur-chaseditusingapackage coupon wereaslikelytorepurchase that brand afterthedealwasretractedas thosewhopurchasedthebrand withoutanyincen-tive (Table6).Thus, thoughthepackage coupondidnot strengthen loyalty whenit wasretracted,italsodidnotundermine repurchase ofthe dealt brand underloyalty transactions(as was thecaseformedia-distri-buted couponsandcents-off deals). However, giventhe small numberoftransactions involvedinthisanalysis, this fmdingisbest viewedas anempiricallybased hypothesis rather thanaconclusion.
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Marketing, Brand, the deal, Perverse incentive, deal retraction