Effectiveness of leaflet advertising in the retail sector in Portugal: A behavioral perspective

Abstract

Over the past few decades, the retail sector in Portugal has undergone significant transformations. At the same time, the evolution of modern behavioural economics has introduced a new approach to understanding alternative consumer behaviour patterns. This approach combines traditional economic theories based on rational decision-making with insights from behavioural economics, highlighting the growing importance of the retail sector in the Portuguese economy and the increasing prevalence of promotional activities in major retail outlets. The primary objective of this study is to examine consumer behaviour within the Portuguese food retail sector from a behavioural perspective, focusing on how consumer decision-making is influenced by the presence of promotional leaflets and assessing their effectiveness. To achieve this, a questionnaire was used to gather data on consumer choices, which were then analyzed using the Ordered Probit model to determine if the observed behaviours align with the theoretical framework. The findings reveal that leaflet advertising influences consumer purchasing decisions, demonstrating a positive level of reliability. Additionally, the study identifies that endogenous and exogenous factors play a significant role in shaping consumer responses to leaflet advertising, although these factors do not always lead to uniform behaviour.