How store flyers affect consumer choice behaviour: National brands vs. store brands

Abstract

Feature promotions or advertised deals constitute an important element of retailer promotion activities. In particular, the effectiveness of store flyers is one of the aspects of most concern to the marketing managers of retail stores as part of their marketing strategy. This paper looks to shed more light on this issue by analysing the effect of brand presence in flyers on consumer choice for both national brands and store brands. To this end, a Multinomial Logit Model (MNL) is estimated with parameters specific to brands using store-flyers. With these specific parameters, a competitive flyer effect ratio is estimated in order to establish which brand benefits from being featured in the same flyer. The results provide key insights for both retailers and manufacturers on how to improve the effectiveness of store flyers. © 2009 Gabler Verlag | GWV Fachverlage GmbH, Wiesbaden.