A taxonomy of consumer purchase strategies in a promotion intensive environment

This paper proposes a taxonomy of consumer purchase strategies based on household decisions about which brand to purchase, how much, and when to purchase in a promotion intensive environment. The authors infer decision rules at the household level from supermarket scanner panel data and then cluster the inferred choice routes in order to discover the major purchasing strategies used in the present population of interest. Subsequently, they test for the distribution of these purchase strategies in the customer population. Results add to the present knowledge of consumer behavior in response to promotions.