Skip to main content

UABPs: Antecedents and Consequences on a Household Level

  • Chapter
  • First Online:
Uniform Across-the-Board Promotions

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

  • 336 Accesses

Abstract

As discussed in previous chapters, Uniform Across the Board Promotions (UABPs), are a relatively new type of promotion concept that has received negative publicity in the international business press, as it has partly been blamed for the insolvency of Praktiker, a major European DIY retailer (Böcking 2012). The anecdotal evidence of a negative long-term impact of UABPs from “the Praktiker example” is supported by the analyses of store-level data of an international value fashion retailer, where strong pre-and post-promotion troughs, decreasing positive sales effects during the promotion as well as negative long-term effects on baseline sales can be observed (compare Chaps. 3 and 4). Many of those effects also exist directionally for traditional price promotions, however to a smaller extent (van Heerde et al. 2000). Despite these findings, many retailers still use UABPs and for those retailers, it is important to further understand, whether those effects also exist on a household level or whether other drivers impact the observations above.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ainslie A, Rossi PE (1998) Similarities in choice behavior across multiple categories. Market Sci 17(2):91–106

    Article  Google Scholar 

  • Anderson ET, Simester DI (2004) Long-run effects of promotion depth on new versus established customers: three field studies. Market Sci 23(1):4–20

    Article  Google Scholar 

  • Anderson EW, Sullivan MW (1993) The antecedents and consequences of customer satisfaction for firms. Market Sci 12(2):125–143

    Article  Google Scholar 

  • Anderson EW, Fornell C, Lehmann DR (1994) Customer satisfaction, market share, and profitability: findings from Sweden. J Market 58(3):53–66

    Article  Google Scholar 

  • Bell DR, Chiang J, Padmanabhan V (1999) The decomposition of promotional response: an empirical generalization. Market Sci 18(4):504–526

    Article  Google Scholar 

  • Bentler PM, Bonett DG (1980) Significance tests and goodness-of-fit in the analysis of covariance structures. Psychol Bull 88(3):588–600

    Article  Google Scholar 

  • Böcking D (2012) Dramatische Hauptversammlung: Praktiker droht Aktionären mit Pleite. http://www.spiegel.de/wirtschaft/unternehmen/praktiker-sanierungskonzept-sorgt-fuer-aerger-auf-hauptversammlung-a-842634.html. Spiegel Online, last accessed 15 Apr 2013

  • Burnham KP, Anderson DR (2002) Model selection and multimodel inference: a practical information-theoretic approach, 2nd edn. Springer, New York

    Google Scholar 

  • Cox AD, Cox D (1990) Competing on price: the role of retail price advertisements in shaping store-price image. J Retailing 66(4):428–445

    Google Scholar 

  • Darke PR, Freedman JL (1993) Deciding whether to seek a bargain: effects of both amount and percentage off. J Appl Psychol 78(6):960–965

    Article  Google Scholar 

  • Darke PR, Freedman JL, Chaiken S (1995) Percentage discounts, initial price, and bargain hunting: a heuristic-systematic approach to price search behavior. J Appl Psychol 80(5):580–586

    Article  Google Scholar 

  • Desai KK, Talukdar D (2003) Relationship between product groups’ price perceptions, shopper’s basket size, and grocery store’s overall store price image. Psychol Market 20(10):900–933

    Article  Google Scholar 

  • Dickson PR, Sawyer AG (1990) The price knowledge and search of supermarket shoppers. J Market 54(3):42–53

    Article  Google Scholar 

  • Dodson JA, Tybout AM, Sternthal B (1978) Impact of deals and deal retraction on brand switching. J Market Res 15(1):72–81

    Article  Google Scholar 

  • Doyle P, Saunders J (1985) The lead effect of marketing decisions. J Market Res 22(1):54–65

    Article  Google Scholar 

  • Fornell C, Larcker DF (1981) Structural equation models with unobservable variables and measurement error: algebra and statistics. J Market Res 18(3):382–388

    Article  Google Scholar 

  • Gönül F, Srinivasan K (1996) Estimating the impact of consumer expectations of coupons on purchase behavior: a dynamic structural model. Market Sci 15(3):262–279

    Article  Google Scholar 

  • Grewal D, Monroe K, Krishnan R (1998a) The effects of price-comparison advertising on buyers’ perceptions of acquisition value, transaction value and behavioral intentions. J Market 62(2):46–59

    Article  Google Scholar 

  • Grewal D, Krishnan R, Baker J, Borin N (1998b) The effect of store name, brand name and price discounts on consumers’ evaluations and purchase intentions. J Retailing 74(3):331–352

    Article  Google Scholar 

  • Helson H (1964) Adaption-level theory, 1st edn. Harper & Row, Oxford

    Google Scholar 

  • Hoch SJ, Kim BD, Montgomery AL, Rossi PE (1995) Determinants of store-level price elasticity. J Market Res 32(1):17–29

    Article  Google Scholar 

  • Hu L, Bentler PM (1998) Fit indices in covariance structure modeling: sensitivity to underparameterized model misspecification. Psychol Methods 3(4):424–453

    Article  Google Scholar 

  • Jolson MA, Wiener JL, Rosecky RB (1987) Correlates of rebate proneness. J Advert Res 27(1):33–44

    Google Scholar 

  • Kalyanaram G, Little JD (1994) An empirical analysis of latitude of price acceptance in consumer package goods. J Consum Res 21(3):408–418

    Article  Google Scholar 

  • Krishnamurthi L, Raj SP (1988) A model of brand choice and purchase quantity price sensitivity. Market Sci 7(1):1–20

    Article  Google Scholar 

  • Kwon KN, Kwon YJ (2007) Demographics in sales promotion proneness: a socio-cultural approach. Adv Consum Res 34:288–294

    Google Scholar 

  • MacCallum RC, Browne MW, Sugawara HM (1996) Power analysis and determination of sample size for covariance structure modeling. Psychol Methods 1(2):130–149

    Article  Google Scholar 

  • Macé S, Neslin SA (2004) The determinants of pre- and postpromotion dips in sales of frequently purchased goods. J Market Res 41(3):339–350

    Article  Google Scholar 

  • Mayhew GE, Winer RS (1992) An empirical analysis of internal and external reference price using scanner data. J Consum Res 19(1):62–70

    Article  Google Scholar 

  • Mazumdar T, Monroe KB (1990) The effects of buyers’ intentions to learn price information on price encoding. J Retailing 66(1):15–32

    Google Scholar 

  • Mela CF, Jedidi K, Bowman D (1998) The long-term impact of promotions on consumer stockpiling behavior. J Market Res 35(2):250–262

    Article  Google Scholar 

  • Metha N, Rajiv S, Srinivasan K (2003) Price uncertainty and consumer search: a structural model of consideration set formation. Market Sci 22(1):58–84

    Article  Google Scholar 

  • Montgomery AL (1997) Creating micro-marketing pricing strategies using supermarket scanner data. Market Sci 16(4):315–337

    Article  Google Scholar 

  • Nyström H (1970) Retail pricing: an integrated economic and psychological approach. Doctoral dissertation, Stockholm School of Economics

    Google Scholar 

  • Oliver RL, Winer R (1987) A framework for the formation and structure of consumer expectations: review and propositions. J Econ Psychol 8(4):469–499

    Article  Google Scholar 

  • Rosseel Y (2012) Lavaan: an R package for structural equation modeling. J Stat Software 48(2):1–36

    Google Scholar 

  • Rothschild ML, Gaidis WC (1981) Behavioral learning theory: its relevance to marketing and promotions. J Market 45(2):70–78

    Article  Google Scholar 

  • Schindler H, Rogulic B (1998) Preismanagement im Einzelhandel: vom Preiskampf zur Steuerung des Preisimages. Absatzwirtschaft 12(98):68–75

    Google Scholar 

  • Stigler GJ (1961) The economics of information. J Polit Econ 69(3):213–225

    Article  Google Scholar 

  • Teel JE, Williams RH, Bearden WO (1980) Correlates of consumer susceptibility to coupons in new grocery product introductions. J Advert 9(3):31–46

    Article  Google Scholar 

  • Van Heerde HJ, Leeflang PSH, Wittink DR (2000) The estimation of pre-and post-promotion dips with store-level scanner data. J Market Res 37(3):283–395

    Google Scholar 

  • Webster FE (1965) The ‘deal-prone’ consumer. J Market Res 2(2):186–189

    Article  Google Scholar 

  • Wheaton B, Muthen B, Alwin DF, Summers G (1977) Assessing reliability and stability in panel models. Sociol Methodol 8(1):84–136

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Jauch, MO. (2014). UABPs: Antecedents and Consequences on a Household Level. In: Uniform Across-the-Board Promotions. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-07115-2_5

Download citation

Publish with us

Policies and ethics