The impact of store flyers on store performance: a format and customer related approach

Abstract

Purpose – The study aims to investigate the impact of store flyer characteristics on store performance for different formats (hypermarket and supermarket) and customer segments (additional and regular shoppers). Specifically, the paper tests propositions on how flyer duration, variety of featured purchasing options, the category and brand mix on feature and the method used to communicate the deal price affect store traffic and sales. Design/methodology/approach – Data were made available for analysis by a grocery chain that utilizes a hi-lo pricing strategy. To test the hypothesis a multiple linear regression analysis was used. Findings – Results indicate that optimal store flyer configuration is related to the store format. Moreover, the response to flyer promotion programs varies across customer segments in relation to their degree of store loyalty. Research limitations/implications – Findings can assist marketers to develop more effective promotional strategies with regards to the bundle of promotions to be offered and the way they should be communicated. Future research should extend the analysis to other retailers and trading areas. Furthermore, it would be useful to replicate the analysis by separating the impact of in-store activities and store flyer effects. Originality/value – This is the first attempt to analyse flyer impact on store performance for different formats and customer segments. Prior research is confined to supermarkets, although the enhancement of store traffic is related to format size. Moreover, the traffic and sales implications of store flyer composition have so far been analysed in an aggregate manner, disregarding customers' shopping patterns.