Abstract
Governments have begun to adopt sales promotions to shape household consumption. Successful private-sector promotions hinge on choice of goals, design parameters, and implementation, particularly coordination between manufacturers and retailers. In the public setting, additional considerations-including equitable and nondiscriminatory treatment of citizens, the influence of the political process on goal setting and program design, the lack of experience in managing marketing programs, and a high level of public scrutiny-may constrain their application. The authors evaluate two recent incentive programs implemented by the U.S. government-the TV Converter Box Coupon program and the "cash-for-clunkers" stimulus in the automotive industry. Both programs encountered problems with goal clarity, forecasting of consumer demand, contractor performance, and logistical coordination with retailers, necessitating legislative extensions. Despite these difficulties, both promotions met their specified short-term objectives, though long-term outcomes are less clear. Government-run consumer promotions are worth considering when there is good reason to shape the timing or amount of household consumption in a specific product category.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 189-203 |
| Number of pages | 15 |
| Journal | Journal of Public Policy and Marketing |
| Volume | 29 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jan 1 2010 |
| Externally published | Yes |
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Keywords
- Cash for clunkers
- Consumption
- Government marketing
- Promotional incentives
- TV converter box coupon program
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics
- Marketing
Cite this
Government adoption of sales promotions : An initial appraisal. / Quelch, John; Jocz, Katherine E.
In: Journal of Public Policy and Marketing, Vol. 29, No. 2, 01.01.2010, p. 189-203.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Government adoption of sales promotions
T2 - An initial appraisal
AU - Quelch, John
AU - Jocz, Katherine E.
PY - 2010/1/1
Y1 - 2010/1/1
N2 - Governments have begun to adopt sales promotions to shape household consumption. Successful private-sector promotions hinge on choice of goals, design parameters, and implementation, particularly coordination between manufacturers and retailers. In the public setting, additional considerations-including equitable and nondiscriminatory treatment of citizens, the influence of the political process on goal setting and program design, the lack of experience in managing marketing programs, and a high level of public scrutiny-may constrain their application. The authors evaluate two recent incentive programs implemented by the U.S. government-the TV Converter Box Coupon program and the "cash-for-clunkers" stimulus in the automotive industry. Both programs encountered problems with goal clarity, forecasting of consumer demand, contractor performance, and logistical coordination with retailers, necessitating legislative extensions. Despite these difficulties, both promotions met their specified short-term objectives, though long-term outcomes are less clear. Government-run consumer promotions are worth considering when there is good reason to shape the timing or amount of household consumption in a specific product category.
AB - Governments have begun to adopt sales promotions to shape household consumption. Successful private-sector promotions hinge on choice of goals, design parameters, and implementation, particularly coordination between manufacturers and retailers. In the public setting, additional considerations-including equitable and nondiscriminatory treatment of citizens, the influence of the political process on goal setting and program design, the lack of experience in managing marketing programs, and a high level of public scrutiny-may constrain their application. The authors evaluate two recent incentive programs implemented by the U.S. government-the TV Converter Box Coupon program and the "cash-for-clunkers" stimulus in the automotive industry. Both programs encountered problems with goal clarity, forecasting of consumer demand, contractor performance, and logistical coordination with retailers, necessitating legislative extensions. Despite these difficulties, both promotions met their specified short-term objectives, though long-term outcomes are less clear. Government-run consumer promotions are worth considering when there is good reason to shape the timing or amount of household consumption in a specific product category.
KW - Cash for clunkers
KW - Consumption
KW - Government marketing
KW - Promotional incentives
KW - TV converter box coupon program
UR - http://www.scopus.com/inward/record.url?scp=78650113457&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=78650113457&partnerID=8YFLogxK
U2 - 10.1509/jppm.29.2.189
DO - 10.1509/jppm.29.2.189
M3 - Article
AN - SCOPUS:78650113457
VL - 29
SP - 189
EP - 203
JO - Journal of Public Policy and Marketing
JF - Journal of Public Policy and Marketing
SN - 0743-9156
IS - 2
ER -