Effectiveness of sales promotional tool

Topics: Marketing, Sales promotion, Discounts and allowances Pages: 17 (5226 words) Published: January 7, 2015
Top of Form

Effectiveness of sales promotional tools in Malaysia: the case of low involvement products. Subject:
Sales promotions (Analysis)
Author:
Ndubisi, Nelson Oly
Pub Date:
07/01/2006
Publication:
Name: Academy of Marketing Studies Journal Publisher: The DreamCatchers Group, LLC Audience: Academic Format: Magazine/Journal Subject: Business, general Copyright: COPYRIGHT 2006 The DreamCatchers Group, LLC ISSN: 1095-6298 Issue:

Date: July, 2006 Source Volume: 10 Source Issue: 2
Product:
Product Code: 9914350 Sales Promotion
Geographic:
Geographic Scope: Malaysia Geographic Code: 9MALA Malaysia

Accession Number:
166778609
Full Text:
ABSTRACT

The thrust of this paper is to evaluate the effectiveness of sales promotional strategies namely, coupon, price discount, free sample, bonus pack, and in-store display in the purchase of low involvement products by Malaysian consumers. The paper also recognises that certain demographic factors such as education and income of consumers could potentially confound the observed relationships hence, these factors were controlled. A total of 312 consumers in Kota Kinabalu, Malaysia were surveyed using structured questionnaire. The results show that price discounts, free samples, bonus packs, and in-store display are associated with product trial. Coupon does not have any significant effect on product trial. Details of the findings and their implications are discussed.

Keywords: Promotion Strategies, Product trial, Low Involvement Product, Consumers, Malaysia.

INTRODUCTION

A large body of research on consumer responses to sales promotions (e.g., Bawa & Shoemaker, 1987 and 1989; Blattberg & Neslin, 1990; Leone & Srinivasan, 1996; Huff and Alden, 1998) has accumulated over the past few decades due to the growing importance of this marketing lever. However, too much stress on coupons at the expense of other equally important promotional tools, has created the need for more work to be done in the area of investigating (together with coupon) the effects of other sales promotional tools such as free sample, bonus pack, price discount, and in-store display on product trial and repurchase behaviour, especially among Malaysian consumers, whose behavioural responses to promotional strategies are ill understood due largely to lack of research on them.

Moreover, research on the use of marketing tools in Malaysia is very scanty at best. And very little (if at all) is understood about the Malaysian customers and their purchase behaviours, especially with regards to how they respond to the various promotional strategies practised by marketers. Since the bulk of the extant literature on these relationships till date remains the Western perspective; there is an urgent need for research focusing on the Malaysian consumers and the Malaysian environment, which is unfamiliar to most readers. Since understanding the behavioural responses of Malaysian customers to sales promotion strategies is salient in customer management and in designing effective sales promotion strategies, important impetuses for this research are established.

To embark on this task, the research focuses on low involvement products (LIP), which are generally believed to be more responsive to promotional tools than high involvement products. Low involvement products are those that are bought frequently and with a minimum of thought and effort because they are not of vital concern nor have any great impact on the consumer's lifestyle (www.marketingprofs.com). Not all purchase decisions are equally important or psychologically involving for the consumer. People engage in a less extensive decision-making process, involving a less detailed search for information and comparison of alternatives, when buying low involvement goods and services than when purchasing high involvement items. Because of the differences in the decision-making process between low and high involvement products, and the high frequency...


References: Banks, P. (2003). Store was set to rage on. Ireland 's Marketing Monthly. 14(8), online, available at: http://www.marketing.ie/sep03/article4.htm.
Bawa, K. & Shoemaker, R.W. (1987). The effects of a direct mail coupon on brand choice behavior. Journal of Marketing Research. 24, 370-376
Bawa, K
Blackwell, R.D., Miniard, P.W. & Engel, J.F. (2001). Consumer Behavior, (9th Edition). Fort Worth, TX: Harcourt College Publishers.
Blattberg, R.C. & Neslin, S.A. (1990). Sales Promotion: Concepts, Methods, and Strategies. N.J.: Prentice Hall. Brandweek, (1994). Promotional influence spurs buyers to try something new. Brandweek. 35 (12): 32-34.
Chandon, P., Laurent, G., & Wansink, B. (2000). A Benefit Congruency Framework of Sales Promotion Effectiveness. Journal of Marketing. 64 (4): 65-81.
Cook, A. (2003). How to cash in on the coupon craze. Incentive Business. Jun/Jul: 3
Darks, M.C
Ehrenberg, A.S.C., Hammond, K. & Goodhardt, G.J. (1994). The after-effects of price related consumer promotions. Journal of Advertising Research. 34 (4): 11-21.
Fill, C. (2002). Marketing Communications: Contexts, Strategies and Applications, (3rd Edition). Italy: Pearson Education Limited.
Gardener, E. & Trivedi, M. (1998). A communication framework to evaluate sale promotion strategies. Journal of Advertising Research. 38 (3): 67-71
Garretson, J.A., & Burton, S
Gilbert, D.C. & Jackaria, N. (2002). The Efficacy of Sales Promotions in UK Supermarkets: A Consumer View. International Journal of Retail & Distribution Management. 30 (6): 315-322.
Hair, J.F., Jr., Anderson, R.E., Tatham, R.L., Black, W.C. (1998). Multivariate Data Analysis. (5th Edition), New Jersey: Prentice Hall, Inc.
Huff, L.C. & Alden, D.L. (1998). An Investigation of Consumer Response to Sales Promotions in Developing Markets: A Three Country Analysis. Journal of Advertising Research. 38 (3), 47-56.
Kardes, F.R. (1999). Consumer Behavior: Managerial Decision Making. New York: Addison Wesley Longman.
Kite, M. (1996). Age, Gender, and Occupational Label, Psychology of Women Quarterly, 20, 361-374.
Lee A. (1963). Sales Promotion Effectiveness Can Be Measured. Journal of Marketing. 27 (4): 69-70
Leone, R.P
Marketingprofs (2004). High Involvement and Low Involvement Products, available at http://www.marketingprofs.com. Site visited on 19/1/05.
Minton, H.L. & Schneider, F.W. (1980). Differential Psychology, Prospect Heights, IL: Waveland Press.
Morris, M.G. & Venkatesh, V. (2000). Age Differences in Technology Adoption Decisions: Implications for a Changing Workforce, Personnel Psychology, 53, 375-403.
Ong, B.S., Ho, F.N. & Tripp, C. (1997). Consumer perceptions of bonus packs: An exploratory analysis. Journal of Consumer Marketing. 14 (2): 102-112.
Percy, L., Rossiter, J.R., & Elliott, R. (2001). Promotion Tactics. Strategic Advertising Management. Oxford: Oxford University Press
Peter, J.P
Praeger, K. (1986). Identity Development, Age, and College Experience in Women, The Journal of Genetic Psychology, 147(1), 31-36.
Schindler, R.M. (1998). Consequences of perceiving oneself as responsible for obtaining a discount: evidence for smart-shopper feelings. Journal of Consumer Psychology. 7 (4): 371-392.
Shimp, T A. (2003). Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications. (Sixth Edition). United States of America: Thomson South-Western.
Thomas, R.J. (1993). New Product Development: Managing and Forecasting for Strategic Success. U.S.A: John Wiley & Sons, Inc.
Totten, J.C., & Block, M.P. (1994). Analyzing Sales Promotion Text & Cases: How to Profit from the New Power of Promotion Marketing, (2nd Edition). U.S.A.: The Dartnell Corporation.
Wayne, M. (2002). Hitting your target with direct mail coupons. Marketing Magazine. 107 (22): 19-1/2p.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Promotional Tools
  • Promotional Tools Essay
  • Effectiveness of Website as a Promotional Tool for Aarong Essay
  • Essay about Advertising And Promotional Tools
  • Research Questions (Carrefore, Promotional Tools) Essay
  • Tools Essay
  • Sales and distribution Essay
  • Sales Essay

Become a StudyMode Member

Sign Up - It's Free