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1、 The Buying Propensity of a Purchase IntentOur analysed the effectiveness of the media mix in Australian shopping centres, retail and grocery outlets. This issue will qualify and quantify the purchase intent as a key performance indicator of the advertising campaign. The purchase intent is the curre
2、ncy of advertising effectivenessTo assess the we must use a measure of activity. Cost-per-thousand (cpm and other measures of exposure or coverage can be used for media planning, but not to measure the actual performance of the campaign. Sales are a retrospective measure of “what happened at retail”
3、 . Often, advertisers and agencies need an instant measure of campaign performance and an early indicator of expected sales.What is the dollar value of a purchase intent?Simply, it is the price of the advertised item times the likelihood of the sale. In other words, the conversion rate is a quality
4、measure, reflecting the credibility of the source. It is the buying propensity of the shopper. Conversion rates correlate with consumption behaviour and the brand attitude of consumers. Highest conversion rates are achieved from shoppers with established consumption habits and a positive brand attit
5、ude.This conversion model quantifies the purchase intent based on the established brand or category consumption and then, qualifies the conversion rate based on the brand attitude and preference of the shopper.Consumption based conversion segregates the purchase intentions into three streams, with i
6、ncreasing propensity of sale. First-time buyers are new users with no prior consumption habits and hence, no urgency to buy. The brand switchers, on the other hand, have established consumption patterns, but little brand commitment. The brand loyal customers are habitual users of the advertised bran
7、d and if satisfied, will continue to re-buy at regular intervals in order to maintain their standard of living.Attitudes and perceptions are indications of what shoppers think about the advertised brand, in the context of their expectations and consumer choice. The primary measures include category
8、top-of-mind awareness, brand preference rankings and the brand experience, or satisfaction scores.Consumption habits & brand perception must be consistentWhen interviewed, a first-time buyer “may consider buying the brand” without mentioning “how often, or when” they intent do so. A brand switcher “
9、may consider buying the brand” and at the same time, show a negative brand attitude and preference for other category brands. Likewise, the purchase intent of a brand loyal customer may be vulnerable to churn if their brand experience is less than positive. Clearly, not all purchase intentions are o
10、f equal quality.The brand consumption and perception measures are standard performance metrics in advertising. Most studies measure some sort of purchase intent, often without further qualification. It is the consumption behaviour and the brand perception that lend this important measure its credibi
11、lity and predictive power as a key performance indicator.Without such a context, the purchase intent is little more than a pleasing answer by the shopper to the interviewer. Media insights:Your MBR TeamNotes:1 Conversion rates were included in the model for illustrative purpose only. These are based
12、 on typical values of the average campaign in the sample. Conversion factors vary by campaign, brand and market situation, but correlate with brand consumption and attitude. Conversion rates are calculated as net figures, i.e. as churn-in less churn-out.2 A conversion factor of 1.00 would equal 100% buying propensity, a sure sale. One of 0.0 would indicate the opposite, a lost sale.3 Methodology: CAPI/intercept with exit interviews in p
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