THE EFFECT OF RETAIL PROMOTIONS ON HOMECENTER SHOPPING BEHAVIOR

Homecenter retailers are increasingly important as an outlet for wood products distribution to consumers. Given the increased competition am ong homecenters selling to the growing repair and remodeling market, p romotion strategies are an important component of a store's ability to generate sales and earn a profit. One of the most widely used promoti on strategies is the temporary discount of a number of goods with the intention of drawing customers to the store and having those customers also purchase regular-price goods. This paper assists retailers in th is increasingly competitive market by investigating how retail promoti ons influence shopping behavior. Results show that loss-leader promoti ons attract additional shoppers to homecenters, and the majority of th ese shoppers purchase regular-price merchandise. Wood products produce rs selling to homecenters can also benefit by understanding how such p romotions affect sales of their products to retail customers.