The Advertising Exposure Effect of Free Standing Inserts

Srini S. Srinivasan · Robert P. Leone

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies Consumer Retail Behavior Studies

Abstract

Manufacturers of consumer packaged goods regularly distribute coupons through free standing inserts in newspapers. In this paper, we investigate the possibility that free standing inserts have an advertising exposure effect that influences the brand purchases of shoppers who do not use coupons in the category studied. If free standing inserts for a brand do have a pure advertising exposure effect, there should be an increase in the sales of that brand even to non-users of the coupons. Results of an empirical analysis show that such an effect does exist for two of the six cases investigated. We also find some evidence of a cross-brand advertising exposure effect indicating that the sales of a competing brand to non-users of coupons decrease in the weeks following the appearance of a coupon in a free standing insert.

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References

1983The Econometric Analysis of Time Series.1990Sales Promotion: Concepts, Methods and Strategies 1989Price-Induced Patterns of Competition 1988The Price Elasticity of Selective Demand: A Meta-Analysis of Econometric Models of Sales 1984A Price Discrimination Theory of Coupons 1992Integrated Marketing Communications 1988Measuring the Effect of Retail Store Promotions on Brand and Store Substitution 1987The Coupon-Prone Consumer: Some Findings Based on Purchase Behavior across Product Classes

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