Impact of Retail Promotions on Consumers

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Shoppers' Delight, a large retail store, had above-average quality and competitive prices. It advertised its retail promotions in local newspapers. Its TV advertising was mainly aimed at building store image and did not address retail promotions. The management knew it well that they had to advertise their retail promotions more, but they did not feel comfortable with the effectiveness of present efforts and wanted to better understand the impact of their present promotions.

To better understand the effectiveness of present efforts, a study of advertising exposure, interpretation, and purchases was undertaken. Researchers conducted 50 in-depth interviews with customers of the store's target market to determine the appropriate product mix, price, ad copy and media for the test. In addition, the store's image and that of its two competitors were measured.

Based on the research findings, different product lines that would appeal to the target customers were selected. The retail promotion was run for a full week. Full-page advertisements were released each day in the two local Hindi newspapers, and also in one English newspaper that devotes six pages to the coverage of the state.

Each evening, a sample of 100 target market customers were interviewed by telephone as follows:

1.Target customers were asked if they had read the newspaper that day. This was done to determine their exposure to advertisement. 2.After a general description of the product lines, the respondents were asked to recall any related retail advertisements they had seen or read. 3, If the respondents were able to recall, they were asked to describe the ad, the promoted products, sale prices, and the name of the sponsoring store. 4.If the respondents were accurate in their ad interpretation, they were asked to express their intentions to purchase. 5.Respondents were also asked for suggestions to be incorporated in future promotions targeted at this consumer segment....
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