Optimizing time limits in retailpromotions: an email application

Authors: Hanna, R. C.1 rc.hanna@be.edu Berger, P. D.2 Abendroth, L. J.2 Source: Journal of the Operational Research Society; Jan2005, Vol. 56 Issue 1, p15-24, 10p Document Type: Article Subject Terms: *RETAIL industry *MARKETING executives *SALES promotion *E-mail *CONSUMERS CALCULUS NAICS/Industry Codes : 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: Most marketing managers know intuitively that once a customer delays a purchase decision, the potential is high that the purchase may be put off indefinitely. In response, marketing managers usually set `deadlines' or time limits for how long an offer is available. However, research has shown that, while time limits can help motivate customers to buy now rather than later (or not at all), time limits that are over/under restrictive may actually hurt response more than help. We consider two opposing forces of time, namely awareness and urgency. Longer time limits allow for greater awareness of an offer, which, everything else being equal, should lead to a larger response. At the same time, longer time limits also reduce the urgency of an offer leading consumers to delay their purchase (perhaps) indefinitely and thus, everything else being equal, lead to a lower response. Using decision calculus, we model the optimal time limit for promotional offers and demonstrate its use in an email marketing application. Email marketing has emerged as a profitable tool for companies like Amazon and JCrew who regularly use email to communicate promotional offers to their customers because of its low cost to implement and its relatively high response rates. This research contributes to the field by providing marketing managers a methodology for determining superior choices for time limit in promotional offers. [ABSTRACT FROM AUTHOR]

The Role of Retail Promotion in Determining Future Brand Loyalty: Its Effect on Purchase Event Feedback
Authors: Gedenk, Karen1 gedenk@bwl.uni-kiel.de Neslin, Scott A.2 Scott.Neslin@Dartmouth.edu Source: Journal of Retailing; Winter99, Vol. 75 Issue 4, p433, 27p Document Type: Article Subject Terms: *BRAND loyalty *RETAIL industry *BRAND choice *CONSUMER behavior *MARKETING *ESTIMATION theory NAICS/Industry Codes : 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: We model and estimate the role of retail promotion in determining future brand loyalty through its effect on purchase event feedback. Purchase event feedback represents the effect of current purchases on future brand preference. Our model assesses the extent to which purchases made under a retail promotion enhance or detract from the level of feedback, compared to nonpromotion purchases. We apply the model to two product categories and compare the effects of price versus nonpriceretailpromotions. We find that in-store price promotions are associated with negative purchase event feedback compared to nonpromotion purchases, whereas nonpricepromotions such as features or sampling have no effect or in fact are associated with positive purchase event feedback, compared to purchases made off promotion. [ABSTRACT FROM AUTHOR]

Promotions Perk Same-Store Numbers.

Source: Home Textiles Today; 10/25/2004, Vol. 26 Issue 9, p23-23, 1/4p Document Type: Article Subject Terms: *RETAIL stores *SALES *RETAIL industry *SHOPPING CLOTHING & dress Geographic Terms: UNITED States NAICS/Industry Codes : 448140 Family Clothing Stores 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: The article reports on the rise in same-store retail sales in the U.S. as of October 25, 2004. The rise in sales were due to seasonal shopping and more promotional pricing. The same-store retail sales perked up 2.9 percent during the second week of October 2004. Apparel sales also have been stimulated by more promotional pricing as stores sought to shift goods ahead of the holiday season. Some retailers claim that colder weather, is expected eventually to trigger seasonal demand for apparel inventory, while others cautiously suggest that projections will need to be shaved if consumer indicators like employment or income continue to grow more slowly. ISSN: 0195-3184 Accession Number: 14847745 Database: Business Source Elite ISSN: 1543-2009 Accession Number: 27783286

Database: Business Source Elite

Buyerseller relationships for promotional support in the apparel sector.

Authors: Kincade, Doris H.1 Woodard, Ginger A.2 Park, Haesun3 Source: International Journal of Consumer Studies; Dec2002, Vol. 26 Issue 4, p294-302, 9p Document Type: Article Subject Terms: *RETAIL industry *CLOTHING industry Author-Supplied Keywords: Manufacturer Promotional supports RETAIL BUYING retailer relationships NAICS/Industry Codes : 448140 Family Clothing Stores 448190 Other Clothing Stores 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: Abstract Promotional supports provided by manufacturers are important to many retailers. With the intense competition for customers and heightened concern for profit margins, retailers cooperation is critical in the promotional process so that promotional services mutually benefit both manufacturers and retailers. The purpose of this study was to define promotional support categories offered to apparel retailers from manufacturers, to identify the retailer's perceptions of the offering frequency and importance of the promotional support, and to investigate the relationship between offering frequency and perceptions of importance. A descriptive research design was developed to survey 100 large retail organizations in the USA. Results indicated that monetary support was regarded as the promotional support offered the most and perceived by retailers to be the most important. Findings reveal an overall consistency

between apparelretail buyers importance perception and manufacturers offering frequency of promotional support. A positive and significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. Indications were that manufacturers recognize their customers needs by matching the frequency of support offerings with which they offer the promotional support with the importance perception of buyers toward the promotional support. Future studies should identify and examine additional promotional support items. Also, examining the interrelationships among organizational variables, as well as combined effects on apparelretail buyers buying decision-making using a global model, needs to be investigated. [ABSTRACT FROM AUTHOR] :
1

Department of Near Environments, Virginia Polytechnic and State University,

Blacksburg, VA 24061, USA

2

Department of Apparel, Merchandising & Interior Design, East Carolina University,

Greenville, NC 27858, USA

3

Ohio State University, Columbus, OH, USA

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Converting Your Best Commodity into Cash.

Authors: Speer, Jordan K. jspeer@apparelmag.com Source: Apparel Magazine; Nov2007, Vol. 49 Issue 3, p2-2, 2/3p Document Type: Article Subject Terms: *RETAIL industry *CLOTHING industry *CONSUMER behavior *CUSTOMER relations -- Management *SHOPPING malls NAICS/Industry Codes : 448140 Family Clothing Stores 448190 Other Clothing Stores 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) People: STANEK, Michael Abstract: The article presents tips for apparel retailers on benefiting from traffic in malls. According to Michael Stanek, president and CEO of Canadian apparel retailer Northern

Reflections, traffic in malls is the most important commodity of retailers. The key to increased sales is converting those shoppers into customers. Customer relationship management (CRM) solutions for analyzing customer preferences and behavior are also important, allowing retailers to cater their promotions and offerings to the specific shopping habits and preferences of the individual consumer. Full Text Word Count: 657 ISSN: 1543-2009 Accession Number: 2778328 Database: Business Source Elite

Setting Back the Clock for BTS Apparel.

Authors: Garbato, Debby Source: Retail Merchandiser; Oct2004, Vol. 44 Issue 10, p27-28, 2p, 2 Color Photographs Document Type: Article Subject Terms: *CLOTHING industry *RETAIL industry *SALES promotion *SUPPLIERS *SALES FASHION JEANS (Clothing) Geographic Terms: UNITED States NAICS/Industry Codes : 448190 Other Clothing Stores 448140 Family Clothing Stores

315224 Men's and Boys' Cut and Sew Trouser, Slack, and Jean Manufacturing 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: Focuses on the efforts of apparel merchandisers in coping with changes in back-toschool apparel selling in the U.S. retail market. Advantages of tax-free promotions to retailers and suppliers; Forecast on the changes in fashion trends and styles for girls' clothing; Increase in the sales of Wrangler jeans for young men. INSET: LESS OF A UNIFORM LOOK. Full Text Word Count: 1829 ISSN: 1530-8154 Accession Number: 14875155 Database: Business Source Elite

The relationship between retail price promotions and regular price purchases
Authors: Mulhern, Francis J. Padgett, Daniel T. Source: Journal of Marketing; Oct95, Vol. 59 Issue 4, p83, 8p, 3 Charts Document Type: Article Subject Terms: *SALES promotion *PRICING *RETAIL industry *DISCOUNT *PRICES

*CONSUMER behavior *MARKETING research *MARKETING strategy *PRICE maintenance NAICS/Industry Codes : 541910 Marketing Research and Public Opinion Polling 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstract: Retailers offer temporary price promotions to attract shoppers to stores and encourage them to purchase regular price merchandise. Existing research has found little evidence that price promotions affect regular price sales, possibly because published studies have not directly examined individual purchase baskets to determine if shoppers buying promoted items also purchase regular price items. The authors match actual purchases of individual shoppers with an in-store survey to determine the relationship between regular price and promotion purchasing. The results show a significant, positive relationship between regular price and promotion purchases. Among shoppers who identify the promotion as one of their reasons for visiting the store, three-fourths make regular price purchases, On average, these shoppers spend more money on regular price merchandise than on promotion merchandise. Also, the results show that shoppers visiting the store for the promotion are no less profitable to the store than other shoppers. [ABSTRACT FROM AUTHOR]

Assessing the Impact of Retail Price Promotions on Product Substitution, Complementary Purchase, and Interstore Sales Displacement.
Authors: Walters, Rockney G.1 Source: Journal of Marketing; Apr91, Vol. 55 Issue 2, p17-28, 12p, 1 Diagram, 5 Charts Document Type: Article Subject Terms:

*CONSUMER behavior -- Research *CONSUMERS -- Attitudes -- Research *RETAIL stores *MARKETING *RETAIL industry *SPECIAL sales *MARKETING strategy *SALES *PRICING *BRANDING (Marketing) *ADVERTISING -- Brand name products *PRICES NAICS/Industry Codes : 453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) Abstr act: The author investigates the impact of retail price promotions on consumer purchasing patterns and the performance of competing retailers. A conceptual framework for retail promotional effects that includes brand substitution effects, interstore sales displacements, and the effects of promotions on complementary goods is developed. The framework is tested with store-level scanner data. Results are generally supportive of the framework and show that retail price promotions created significant complementary and substitution effects within the store. Interstore promotional effects also were detected in several cases as the promotions of products in one store significantly decreased sales of substitutes and complements in a competing store. Implications of the results for retail and manufacturer promotional strategies are discussed and several directions for future research are offered. [ABSTRACT FROM AUTHOR]

Measuring the Effect of Retail Store Promotions on Brand and Store Substitution.
Authors: Kumar, V.1 Leone, Robert P.2 Source:

Journal of Marketing Research (JMR); May88, Vol. 25 Issue 2, p178-185, 8p, 1 Diagram, 2 Charts Document Type: Article Subject Terms: *SALES promotion *RETAIL stores *MARKETING -- Mathematical models *MARKETING models *CONSUMER behavior *BRAND mobility *PRICING *PRINT advertising *MARKETING *DECISION making DIAPERS NAICS/Industry Codes : 541850 Display Advertising

Abstract: Using store-level scanner data, the authors investigate the effect of retail store price promotion, featuring, and displays on sales of brands of disposable diapers within a city. A hierarchical, cross-sectional, and time-series modeling procedure is used to identify the competitive structure among retail stores within a test market city. Models are developed for pooled store pairs to investigate the effect of promotion on store substitution. The specification of these models is based on findings from within-store brand substitution models. Within a store, price promotion produced the largest amount of brand substitution, followed by featuring and displays. Similarly, these activities produced store substitution in certain instances. However, which specific promotional variables are significant and the magnitude of the effect are a function of the geographic proximity of the stores. [ABSTRACT FROM AUTHOR]

Exploring the effect of retail sector and firm characteristics on retail price promotion strategy.
Authors: Voss, Glenn B.1 gvoss@ncsu.edu Seiders, Kathleen2 seiders@babson.edu Source: Journal of Retailing; Spring2003, Vol. 79 Issue 1, p37-52, 16p Document Type:

Article Subject Terms: *SALES promotion *PRICES *MARKETING Author-Supplied Keywords: Assortment heterogeneity EDLP Perishability Retail price promotion strategy Abstract: This study examines why retail price promotion strategies vary across retail sectors and across firms within sectors. Using hierarchical linear modeling and a sample of 38 firms from 11 retail sectors, the authors investigate how two sector-level characteristics, related to product assortment perishability and heterogeneity, and three firm-level characteristics, related to retailer differentiation, number of stores, and average store size, influence price promotion decisions. The results indicate that assortment heterogeneity moderates the positive influence of perishability on price promotion activity; scale and scope also have significant effects. These results offer fresh insight into the ongoing debate surrounding stable versus promotional pricing, suggesting that the benefits of a particular strategy are driven largely by a complex interaction between sector-level characteristics as well as firmlevel cost advantages. [Copyright &y& Elsevier]

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