Primary influences of environmental uncertainty on promotions budget allocation and performance: A cross-country study of retail advertisers

Planning ahead has numerous benefits, but many small retailers do not seem to engage regularly in marketing planning. Researchers often document lack of planning expertise. This study attempts to examine whether retailers undertake planning when faced with an uncertain environment. Specifically, our study examines whether small retailers will switch from in-store promotion to outdoor advertising where the latter has mass audience reach capability and hence the potential to increase market share. The results show mixed financial performance. The study concludes by discussing the implications of the results for small retailers. © 2005 Elsevier Inc. All rights reserved.