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Amazon’s Prime days, but also Krogers’ Cart Buster (also known as Mega Sales), are just two examples of innovative promotional activities. This study looks at these innovative types of events and demonstrates the effects they have on consumers.
Retailer-Themed Super Saver Events (ReTSS) differ from normal day-to-day promotions on several dimensions (unusually deep immediate discounts, across a broad range of categories, using of a uniform deal format and a common savings theme, that is unique to the retailer, and communicated through mass media), and may produce different effects in terms of consumer visits and purchases. Anecdotal evidence suggests that traffic and basket-sizes do increase during the ReTSS period and that such events are “the engine behind revenue growth.”
This study demonstrates that, through increased awareness and interest (larger perceived monetary and non-monetary benefits), these ReTSS yield different outcomes than regular promotions. This study evaluates these effects by analyzing 44 Retailer-Themed Super Saver Events operated by the largest Dutch grocery retailers over four years. This study finds a substantial increase in visits and total purchases during the event, especially among nonprimary customers and hard-discount shoppers. The larger part of this lift stems from the use of an overarching event theme. Consumers buy less in anticipation of the event and visit the store more often afterward, but for smaller baskets – typically leading to a null effect in terms of profit. Thus, although not a panacea, ReTSS can be a valuable defense tool – strengthening the retailers’ share of wallet among light customers and preventing them from permanently defecting to discount stores (such as Aldi and Lidl).
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Related Marketing Courses:
Marketing Analytics; Marketing Communications;
Full Citation:
Guyt, J. Y., & Gijsbrechts, E. (2020). “Evaluating the Effectiveness of Retailer-Themed Super Saver Events.” Journal of Marketing, 84(2), 92–113.
Article Abstract:
In response to pressure to defend their stand sales against discounters, grocery retailers started engaging in retailer-themed super saver events: promotional events (1) specific to the retailer, in which they (2) mass advertise (3) unusually deep, immediate deals (4) across a broad range of categories (5) under a common savings theme and deal format. Given these characteristics, such events are expected to generate higher awareness and interest than typical day-to-day promotions, thereby enhancing visits and purchases during the event but also reducing them before and after. The authors evaluate these effects by analyzing 44 retailer-themed super saver events operated by the largest Dutch grocery retailers over four years. They find a substantial increase in visits and total purchases during the event, especially among nonprimary customers and hard-discount shoppers. The larger part of this lift stems from the use of an overarching event theme. Consumers buy less in anticipation of the event and visit the store more often afterward, but for smaller baskets—typically leading to a null effect in terms of profit. Finally, our results suggest that rather than the deal depth or advertising budget, the number of items and media resonance of the theme are key drivers of event success.
Special thanks to Kelley Gullo and Holly Howe, Ph.D. candidates at Duke University, for their support in working with authors on submissions to this program.
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Jonne Y. Guyt is Assistant Professor, University of Amsterdam, the Netherlands.
Els Gijsbrechts is Professor in Quantitative Marketing, Tilburg University, the Netherlands.