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An Integrated Model of Alternative Mechanisms of In-Store Display and Feature Advertising on Brand Choice

dc.contributor.authorZhang, Jie
dc.date.accessioned2006-05-19T15:17:31Z
dc.date.available2006-05-19T15:17:31Z
dc.date.issued2004
dc.identifier891en
dc.identifier.urihttps://hdl.handle.net/2027.42/39154
dc.description.abstractAlthough many studies have documented that in-store displays and feature advertising can significantly increase brand choice probabilities, the mechanism through which they affect the choice decision process is not well understood. The marketing literature has suggested two prominent decision mechanisms through which their effects may take place, which I call: the price cut proxy effect and the consideration set formation effect. The primary objective of this study is to jointly examine these two decision mechanisms suggested in the literature using scanner panel data of actual purchase behavior. I construct a brand choice model based on the behavioral premises of both effects. The proposed model allows consumers to use a combination of various decision processes with different probabilities, and accommodates the correlation in utilizing different decision mechanisms of display and feature ad. Results of the empirical analysis reveal distinct consumer segments with regard to their tendenc ies to use displays and/or feature ads as price cut proxies or for forming consideration sets, and the pattern is consistent with consumer characteristics in each segment, such as degree of state dependence and price sensitivity. Findings from this study shed light on some mixed patterns of promotion interaction effects documented in the literature, and also have interesting implications for promotion decisions.en
dc.format.extent151198 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_US
dc.subjectpromotion decisionsen
dc.subjectbrand choice modelsen
dc.subjectdecision mechanismen
dc.subjectconsideration set formationen
dc.subjecteconometric modelsen
dc.subject.classificationBusiness Administrationen
dc.titleAn Integrated Model of Alternative Mechanisms of In-Store Display and Feature Advertising on Brand Choiceen
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.contributor.affiliationumRoss School of Businessen
dc.contributor.affiliationumcampusAnn Arbor
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/39154/1/891.pdfen_US
dc.owningcollnameBusiness, Stephen M. Ross School of - Working Papers Series


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