Prof. Sunil bhardwaj
DR. AKSHAY TYAGI (08BSHYD0049)
AMIT SINGH BISHT (08BSHYD0077)
ASHUTOSH KUMAR SHARMA (08BSHYD0160)
LAVEENA GUPTA (08BSHYD0839)
SUGANDHA CHAWLA (08BSHYD0375)
DATE 22 DEC 2008
Consumer has been playing the key role in the business growth models of all sectors. The change from “Push” to “Pull” strategy has opened up doors for research on the buying patterns and thereby increasing the sales revenue. However, the pattern is distinct among the consumers in various segments. Again the business segments have been trying hit and trial methods to understand this change. All the studies carried in this aspect has attempted to categorize some of the common attributes of consumer buying which has been supported by extreme market research. Moreover these characteristics have provided fruitful results over a period of time. research question
What kind of consumer behavior (brand switching, stockpiling, purchase acceleration, product trial and spending larger amounts) follows as a result of various sales promotion activities (free gifts, personal demonstration, multi-brand promotional offers, sweepstakes or games, guarantees or warranties) in a super market? RESEARCH OBJECTIVES
The basic objective underlying this project is to analyze the response of the consumer towards sales promotion activities. Previous research has shown that sales promotion can encourage behavioral responses such as brand switching, stockpiling, purchase acceleration, product trial and spending larger amounts. Through this research we intend to analyze what kind of behavior follows as a result of non monetary sales promotion. The data then collected would be used to answer two basic questions: 1. Which behavior is most likely to be exhibited for a given sales promotional tool? 2. Which kind of sales promotion is most effective in bringing about one particular behavior? 3. Are the sales promotion activities linked to each other and an overlapping of the consumer behavior exists?
1. A Benefit Congruency Framework of Sales Promotion Effectiveness * Chandon ,Wansink and Laurent (2000)
The paper discusses that promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression, entertainment, and exploration), and three utilitarian benefits (savings, higher product quality, and improved shopping convenience). Based on the distinction between the types of sales promotions and promotion benefits, Chandon Wansink and Laurent showed that monetary promotions provide more utilitarian benefits whilst non-monetary promotions provide more hedonic benefits. Source: http://www.atypon-link.com/AMA/doi/abs/10.1509/jmkg.22.214.171.12471
2. A Review of Theoretical Perspectives Applied to Sales Promotion and a New Perspective based on Mental Accounting Theory – (2003-04) ------------ Priya Jha-Dang
This paper includes adaptation level theory, assimilation contrast theory, attribution theory, prospect theory, transaction utility theory, the elaboration likelihood model and the attitude model. It finds that these theoretical approaches have had a single product focus in evaluating consumer response to promotions. It suggests an alternative theoretical perspective to examine consumer response to promotion from a multi product perspective. Sources: http://ideas.repec.org/p/iim/iimawp/2004-03-04.html
3. The Effectiveness of In-Store Free Samples on Sample Takers Heilman, Lakishyk and Radas (July 2006)
This research examines the impact of in-store free samples on “samplers” (those who accept the free sample). It also provides insights about non-samplers (those who see the sample but do not accept it) by...