on a cents off deal would be less likely to repurchase it when the deal was

On a cents off deal would be less likely to

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on a cents-off deal would be less likely to repurchase it when the deal was retracted than those initially purchasing without the benefit of a deal. As expected (H,), individuals who switched brands to take advantage of a cents-off deal were less likely to repurchase that brand on their next purchase occa- sion than those in the no-deal comparison who pre- viously switched without an incentive. Although this effect was observed for both margarine and flour, it reached conventional levels of statistical significance only for margarine (Table 5). Further, people who had purchased a brand and then repurchased it on a cents-off deal were less loyal to that brand after the deal was retracted than those who purchased it without an incentive, regardless of whether the product category was margarine or flour (Table 5). Table 4 EFFECTS OF A MEDIA-DISTRIBUTED COUPON ON SUBSEQUENT SWITCHING RELATIVE TO NO DEAL FOR MARGARINE AND FLOUR, CATEGORIZED BY SWITCHING AND LOYALTY TRANSACTIONS Transaction type Switching Loyalty 'Significant at "Significant at .01 level. .05 level. Product category Margarine Flour Margarine Flour Probability of repeat purchase of brand Deal transactions 13% (n = 671) 16% (n = 58) 51% (/I = 164) 44% (fi = 9) No-deal comparison 28% 36% 77% 74% (n = 23,794) (n = 6,478) (n = 29,253) (n = 8,848) Z score for deal-no deal comparison Z = 8.55* Z = 3.17" Z = 7.86' Z = 2.05"
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78 JOURNAL OF MARKETING RESEARCH, FEBRUARY 1978 Table 5 EFFECTS OF CENTS-OFF PACKAGE ON SUBSEQUENT SWITCHING RELATIVE TO NO DEAL FOR MARGARINE AND FLOUR, CATEGORIZED BY SWITCHING AND LOYALTY TRANSACTIONS Transaction type Switching Loyalty 'Significant at Product category Margarine Flour Margarine Flour .05 level. Probability Deal transactions 13% (n = 34% (n = 62% (n = 62% (n = -- 649) = 187) = 189) = 149) of repeat purchase No-deal comparison 28% (/I = 23,794) 36% (n = 6,478) 77% (n = 29,253) 74% (/I = 8,848) Z score for deal-no deal comparison Z= 8.41° Z = .56 Z = 4.86- Z = 4.46'' Package coupon.^ The package coupon requires substantial effort to redeem in comparison with cents- off deals and has relatively low economic value. It was predicted that individuals who redeemed this type of deal would be likely to attribute their behavior to a positive disposition toward the brand purchased and therefore would be more loyal to the brand after the package coupon deal was retracted than when no deal motivated purchase (H^). For both product categories, the data indicate that individuals who purchased a brand and then repur- chased it using a package coupon were as likely to repurchase that brand after the deal was retracted as those who purchased the brand without any incen- tive (Table 6). Thus, though the package coupon did not strengthen loyalty when it was retracted, it also did not undermine repurchase ofthe dealt brand under loyalty transactions (as was the case for media-distri- buted coupons and cents-off deals). However, given the small number of transactions involved in this analysis, this fmding is best viewed as an empirically based hypothesis rather than a conclusion.
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