Sales spur consumer buying trends

Discount Store News, Oct 1, 1990

Sales Promos Spur Consumer Buying Trends

NEW YORK -- Freestanding inserts in newspapers have the greatest impact among general advertising media, while sales stickers and in-store signs are the most potent in-store advertising formats.

These advertising insights were among the findings of a study on the impact that sales promotions have on consumers buying habits. The survey was commissioned by the Promotion Marketing Association of America.

The study indicated that of the 500 consumers surveyed, 98% had used manufacturer coupons during the previous half year, 54% participated in a rebate promotion, 26% entered a sweepstakes and 17% received some type of premium.

Participation in the four types of sales promotions were similar when measured by age group, income levels and education. The only "significant" difference reported by In-Hauss Strategies, the group that conducted the survey, were for sweepstakes, where the typical participant was likely to be female, 35-to 54-years-old, college educated with an income over $45,000

The extensive consumer participation in sales promotions has resulted in changes in buying habits, including increasing the likelihood of shoppers trying new brands, which is a key aim of the coupons, giveaways and premiums. But the study indicated that brand switching decreases with age for the products tracked in the survey: seven general merchandise items--batteries, floor coverings, motor oil, pet food, personal appliances, shampoo and toothpaste--in addition to alcoholic beverages and coffee.

Overall, brand switching occurred most often for batteries, just over 60% of all those surveyed, followed by coffee, personal appliances, shampoo, toothpaste, 50% to 55%, and then floor coverings and pet food, between 30% and 40%. Less than 20% were inclined to switch alcoholic beverage brands.

Breaking down the brand switches by product and age groups, over 50% of those in the 18-to 34 and 35-to 54-age groups were likely to change brands of batteries, coffee, motor oil, personal appliances, shampoo and toothpaste. But only 20% to 40% of those 55 years old and over where likely to change brands of floor coverings, motor oil, pet food, personal appliances, shampoo and toothpaste. Brand switching was much less for other items and age groups.

Other key findings of the study included:

* 82% of those surveyed checked advertisements for coupons and 47% looked for other sales promotions like rebates. * 98% participated in sales promotions involving coupons while 54% did the same for rebates, but sweepstakes promotions attracted only 26% of those surveyed and the fewest number, 17%, participated in premium promotions. * Coupon promotions markedly changed purchasing behavior. Coupons resulted in over 75% buying a different brand, while over 70% bought a product never tried before and also bought an item sooner and over 50% purchased more of an item. * Rebates' more limited impact ranged from 50% purchasing a different brand to about 40% buying sooner and more and almost 40% trying a new product. * Premiums only resulted in 40% of those surveyed buying a product never purchased, trying a different brand and purchasing an item sooner. * Sweepstakes changes 20% of the consumers' shopping behavior, resulting in buying a new product, trying a different brand and making an earlier purchase. * The higher the value of the promotion, the greater the likely participation.

For a $1 rebate, 56% would send in a single proof of purchase (SPP), 38% multiple proofs (MP), 16% would travel an additional 10 minutes to a store and 5% an additional 20 minutes, but for a $2 rebate, 70% would send in a SPP, 52% a MP, 27% would travel 10 more minutes and 9% would travel 20 more minutes, while for a $5 rebate 86% would send in a SPP, 76% a MP, 58% would travel another 10 minutes and 26% another 20 minutes.

The figures for a $25 free premium were: 80% would send in a SPP, 71% a MP, 67% would travel another 10 minutes and 47% an additional 20 minutes.

But the likely participation in a $25,000 sweepstakes weren't much greater than for a $1 rebate, probably because of the difficulty of winning. Fifty-two percent would send in a SPP, 47% a MP, 35% would travel 10 additional minutes and 24% an additional 20 minutes.

Advertising Media

As for advertising media, freestanding newspaper inserts attracted 36% of the respondents, with 27% citing regular newspaper ads and 17% flyers. Other ad vehicles had much poorer responses, 12% for TV ads, 4% for billboard signs and 2% each for radio ads and no response.

In a store, sales stickers had the greatest impact, noted by 31% of those surveyed, followed by in-store signs, 29%, and endcap displays, 23%. Only 9% noted mid-aisle displays and 1% in-store video ad, with 7% failing to mention any in-store format.