SlideShare a Scribd company logo
1 of 4
Download to read offline
International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org || Volume 3 || Issue 4 || April 2014 || PP.28-31
www.ijbmi.org 28 | Page
The effect of sales promotion tools on behavioral responses
Mohamad Yaman Obeid
Marketing and International Trade Department Higher Institute of Business Administration Syria –Damascus
Ymano9@yahoo.com
ABSTRACT: The role of sales promotion devices and need to be able to assess the effectiveness of these
tools. Consumer response (brand switching, purchase acceleration, , spending more) to Four different sales
promotion tools(price discounts, Free gift, games, and extra free product get one free') was investigated through
a survey of 400 student on Higher institute of business administration on Syria.
Price discounts and extra free product were felt by the consumers to be the most effective promotional tools for
inducing purchase responses. Sweepstakes and games, in contrast, were felt to be relatively ineffective in terms
of generating all types of consumer response.
KEY WORDS: Sales promotion, Purchase intentions
I. INTRODUCTION:
Sales promotions are a key marketing tool in communication programs. According to the Chartered
Institute of Marketing’s (2009) Marketing Trends Survey, sales promotion accounts for at least 13 per cent of
UK marketing budgets. Similarly, the 2008 and 2009 PROMO Industry Trends Reports (Penton Media, 2008,
2009) show that despite sales promotions having experienced a decelerating growth due to the economic
conditions, they are recovering faster from the recession compared to traditional media (e.g. advertising, mass
media).Sales promotion comprises a wide variety of promotional tools designed to achieve short-term objectives
(Huff et al., 1999). Monetary promotions, such as price discounts and coupons, are the most common form of
sales promotions used by organizations. However, non-monetary promotions, such as free gifts, free samples,
sweepstakes and contests, are gaining popularity given the negative effects of frequent discounts.
II. LITERATURE REVIEW:
Promotion is one of the techniques to attract consumers to purchase more or try a product or service.
Severe outcomes of promotion included sales increased, quantify of stock used and attract new consumers.For
example, price promotion refers to temporary price reduction which offers to consumers. The characteristic is
the retailer would label a specific percentage or cash saving for the products or services. Previous studies
indicated that a sudden increase of sales would experience by retailers because of price-conscious of consumers
(Banks & Moorthy, 1999; Kopalle & Mela, 1999; Smith & Sinha, 2000; Gilbert & Jackaria, 2002). According to
(Blackwell, Miniard and Engel, 2001), price discounts played significant roles in influencing consumer product
trial behavior by which indirectly attract new consumer.
Promotion technique of "buy-one-get-one-free" is one of the types of bonus packs in which the
consumers are offered the additional product at the ordinary price but are in an enhanced package. Consumer
would be easily persuaded to buy products as there is no extra cost need and more valuable perceived by
consumers (Sinha & Smith, 2000). Besides, this promotion technique would beneficial to retailers in speed up
the stock clearance compared to price promotions (Li, Sun & Wang, 2007).
Games such as sweepstakes (known locally as 'lucky draws') are used by supermarkets to attract traffic.
People participate in these games for reasons such as the perceived value of the prize, or perceived fun and
interest(Ward & Hill 1991). This particular sales promotion tool has received rather limited research attention,
but so-called sweepstakes and games are a very popular form of sales promotion in Hong Kong. Sweepstakes
and lucky draws permeate not only shopping life in Hong Kong, but also social life, with lucky draws being held
at most social gatherings.Of the non-monetary promotional tools, gifts or premiums are becoming increasingly
important in promotional strategies (Raghubir, 2005; Banerjee, 2009; Palazo´n and Delgado, 2009). A gift or
premium is a product or service offered free, or at a relatively low price, in return for the purchase of one or
many products or services (d’Astous and Landreville, 2003). Surprisingly, while gift promotions are widely
used in marketing, academic research into this subject is limited (d’Astous and Landreville, 2003; Bodur and
Grohmann, 2005; Prendergast et al., 2008). As such, manufacturers tend to make decisions about gift
promotions on the basis of experience and intuition (Hiam, 2000; d’Astous and Landreville, 2003).
The effect of sales promotion tools on behavioral responses
www.ijbmi.org 29 | Page
Consequently, gift promotions do not always achieve their objectives, such as significantly increasing
sales (Gedenk et al., 2004).(Beerli and Martin Santana , 1999) have suggested that the best way to evaluate
individual responses to advertising/promotion is based on the three dimensions (stages) of cognition, affection
and conation. The hierarchy of effects model proposed by (Lavidge and Steiner , 1961) uses the same three
dimensions to form its underlying mechanism. The hierarchy of effects model, or variants of it, has dominated
the advertising literature since the1960s (Vakratas & Ambler 1999), and even then the emphasis has
traditionally been on purchasing behavior measures such as sales, market share, loyalty and brand choice. Many
marketing researchers in fact have treated conation as the consumer's behavioral response (Schiffman & Kanuk,
2000).Intention to buy is one of the most widely used measures for the conative stage (Beerli & Martin Santana
1999). Despite the hierarchy in recent years being criticized because the effects may not necessarily follow a
temporal sequence (Vakratas & Ambler 1999), it continues to be applied either wholesale or in part, not only in
advertising, but in sales promotion too.
For instance, (Laroche et al,2003) explained sales promotion in the context of a cognitive-affective-
behavioral model and suggested that relative to other tools in the marketing mix, sales promotion has the
strongest effect on the last stage. Since, traditionally, sales promotion has had a sales objective, studies of sales
promotion have tended to focus on the conative/behavioral stage. This is hardly surprising, especially given the
growing emphasis on 'marketing productivity' (Rust etal. 2004).Previous research has shown that sales
promotion can encourage behavioral responses such as brand switching, stockpiling, purchase acceleration,
product trial and spending larger amounts. Looking first at brand switching, from an economic perspective
(price) promotions induce a brand switch by increasing the utility of a brand that otherwise would not have been
purchased. From a behavioral perspective, transaction utility.
III. RESEARCH QUESTION:
ONE SPECIFIC FORM OF BEHavioral response may be induced by more than one promotional tool.
For instance, new product trial may result from a price discount, a coupon specific to the product or an in-store
demonstration.Similarly, one specific sales promotion tool may induce more than one type of consumer
response , This research was designed to examine the linkages between different sales promotion tools and the
responses of consumers in Syria. the following research question is proposed:
RQ: Which sales promotion techniques (among price discounts, sweepstakes, and extra free product, and
free gift are most effective in inducing consumer responses (of brand switching, purchase acceleration,
spending more) in Syria?
IV. METHODOLOGY:
In this study 2 promotion type(price discount, premium. Games, extra free product) between-subjects
experimental design was employed. The data for the empirical study were obtained from a controlled
experiment involving undergraduate and post graduate students.
V. SAMPLE AND PROCEDURE:
Data were collected from a 400-student sample at Higher institute of business administration (Syria) ,
The students were distributed in four similar size groups which were actually practice groups of a subject. The
information to contrast hypotheses was obtained by means of a survey adapted to the experimental conditions of
each group. At the beginning of the session each participant was given a questionnaire with two differentiated
parts and they were asked to complete the first part. After this, a PowerPoint presentation which simulated the
purchase conditions of the product and brand corresponding to each group was performed in the classroom. At
the end of the practical session, the participants had to answer the second part of the survey.
VI. MEASURES:
The dependent variables used to evaluate promotional effectiveness are perceived value, buying
intention, and search intention. All of them were evaluated on a 5-point Likert scale, anchored by “Disagree
Strongly” and “Agree Strongly.” Perceived value was measured with seven items based on (Chandon, Wansink,
and Laurent, 2000) and (d’Astous and Jacob ,2002). The items were as follows: (1) I like this type of promotion;
(2) I wish there were more promotions like this; (3) This promotion offer incites me to buy the product; (4) This
promotion offer is of great value; (5) This promotion offer is original; (6) This promotion offer pleases me; and
(7) This promotion offer interests me.
The two-item buying intention measure (anchored by “Very Low” and “Very High”) is based on
(Grewal, Monroe, and Krishnan ,1998).
The effect of sales promotion tools on behavioral responses
www.ijbmi.org 30 | Page
The items were as follows: (1) The probability that I would consider buying this product is; (2) The
likelihood that I would purchase this product is.The three item behavioral responses (anchored by “Disagree
Strongly” and “Agree Strongly”) is based on (Zhengshi. et al,2005).The items were as follows:(1) This
promotion has led me to buy another brand which I do not regularly buy,(2) This promotion has led me to buy
the product earlier than planned,(3) this promotion has led me to buy more quantities of the same product.
VII. FINDINGS:
The effectiveness of the promotional tools used by Syrian customers supermarkets was analyzed by
compared the three different buying behaviors induced by individual promotional tools. Through this
comparison, the five behaviors in response to each of the Three tools were ranked, and thus the effectiveness of
each specific tool in inducing each of the five behaviors was identified as Table 1 shows:
Table(1): Mean behavioral response to the five sales promotion tools:
Price Discount Free gift Extra free
product
games Sig
Brand switching 3.92 3.71 3.89 2.67 0.00
purchase
acceleration
4.04 3.61 3.86 2.95 0.00
Spending more 3.99 3.68 3.58 3.06 0.00
 Price discount:
One way Anova was carried out to compare the five different
buying behaviors in response to price discounts. The results indicate significant differences among the three
buying behaviors From Table (1) We see that price discounts are more effective in inducing the behaviors.
 Free gift :
The same tests were conducted for the second promotion tool (free gift) The results were again statistically
significant, free gift were described as relatively more effective in inducing three buying behaviors from games
and less effective from price discount and extra free product.
 Extra free product:
The same tests were conducted for the third promotion tool (extra free product) The results were again
statistically significant, extra free product were described as relatively more effective in inducing three buying
behaviors from games and free gift and less effective from price discount
 Games:
The same tests were conducted for the fourth promotion tool (games) The results were again statistically
significant, games were described as relatively the less effective in inducing three buying behaviors from
another sales promotion tools.
VIII. CONCLUSION:
This research has helped to elucidate the response of consumers to the sales promotion activities most
commonly used by Syrian market. Specifically, the study has generated a comparison of the different buying
behaviors induced by one particular promotional tool and a comparison of the effectiveness of the different
promotional tools in inducing one particular buying behavior. This latter comparison in particular should help
marketers appreciate which tool is relatively more effective in obtaining a given promotional outcome.Price
discounts, extra free product offers were found to be the most effective for encouraging brand switching,
purchase acceleration and additional spending.On the other hand, sweepstakes and games were found to be
relatively less effective in inducing the three behaviors investigated.Finally, this research was conducted in
Syria only Future research therefore needs to examine if the results found in Syria are similar to those found in
other countries where consumers have different cultural perceptions (e.g. perceptions of luck) and different
living environments(e.g. storage space in the home, retailer concentrations).
REFERENCES:
[1]. Banks, J., and Moorthy, S. (1999). A Model of Price Promotion. International Journal of Industrial Organization, 17, 371-
98.
[2]. Beerli, A. & Martin Santana, J. (1999) Design and validation of an instrument for measuring advertising effectiveness in
the printed media. Joumal of Current Issues and Research in Advertising, 21(2), pp. 11-30.
[3]. Bodur, H.O. and Grohmann, B. (2005), “Consumer responses to gift receipt in business-to-business consumer contexts”,
Psychology and Marketing, Vol. 22 No. 5, pp. 441-56.
[4]. Blackwell, R. D. Miniard, P. W., and Engel, J. F. (2001). Consumer Behavior. Forth Worth, TX: Harcourt College
Publisher.
The effect of sales promotion tools on behavioral responses
www.ijbmi.org 31 | Page
[5]. Chartered Institute of Marketing (2009), Marketing Trends Survey Spring 2009, Chartered Institute of Marketing,
Maidenhead.
[6]. Gedenk, K., Lutzky, C., Schultze, T. and Teichmann, M.H. (2004), “Premium promotions-drivers of their success”,
Proceedings of the 33rd EMAC Conference, Murcia, Spain.
[7]. Gilbert, D. C, and Jackaria. N. (2002). The Efficacy of Sales Promotions hi UK Supermarkets: A Consumer View.
[8]. International Journal of Retail and Distribution Management, 30(6), 315-322.
d’Astous, A. and Jacob, I. (2002), “Understanding consumer reactions to premium-based promotional offers”, European
Journal of Marketing, Vol. 36 Nos 11/12, pp. 1270-86.
[9]. Hiam, A. (2000), “Match premiums to marketing strategies”, Marketing News, Vol. 34, p. 12.
[10]. Huff, L.C., Alden, D.L. and Tietje, B.C. (1999), “Managing the sales promotion mix: brand managers’ response to sales
promotions”, Journal of Promotion Management, Vol. 5 No. 1, pp. 77-89.
[11]. Kopalle, P. K., and Mela, C. F. (1999). The Dynamic Effect of Discounting of Sales: Empirical Analysis and Normative
Pricing Implication. Marketing Science, 18 (13), 317-32.
[12]. Laroche, M., Pons, E, Zgolli, N., Cervellon, M. & Kim, C. (2003) A model of consumer response to two retail promotion
techniques. Joumal of Business Research56,July, pp. 513-522.
[13]. Li, S., Sun, Y., and Wang, Y. (2007). 50% Off or Buy One Get One Free? Frame Preference as a Function of Consumable
Nature in Dairy Products. The Joumal of Social Psychology, 147(4), 413-421.
[14]. Palazo´n, M. and Delgado, E. (2009a), “Effectiveness of price discounts and premium promotions”, Psychology and
Marketing, Vol. 26 No. 12, pp. 1108-29.
[15]. Prendergast, G.P., Poon, D.T.Y., Tsang, A.S.L. and Fan, T.Y. (2008), “Predicting premium proneness”, Journal of
Advertising Research, Vol. 48 No. 2, pp. 287-96.
[16]. Penton Media (2009), PROMO Industry Trends Report, Penton Media, New York, NY.
[17]. Raghubir, P. (2004), “Free gift with purchase: promoting or discounting the brand?”, Journal of Consumer Psychology,
Vol. 14, pp. 181-5.
[18]. Rust, R.T., Ambler, T, Carpenter, G., Kumar, V. & Srivastava, R.K. (2004) Measuring marketing productivity: current
knowledge and future directions. Journal of Marketing, October, pp. 76-89.
[19]. Smith, M., and Sinha, I. (2000). The Impact of Price and Extra Product Promotions on Store Preference. International
Journal of Retail and Distribution Management, 28(2/3), 83-92.
[20]. Vakratas, D. & Ambler, T. (1999) How advertising works: what do we really know? Journal of Marketing, 63(1), pp. 26-
44.
[21]. Ward, J.C. & Hill, R.P. (1991) Designing effective promotional games: opportunities and problems. Journal of Advertising,
20(3), pp. 69-81.

More Related Content

What's hot (17)

Marketing management
Marketing managementMarketing management
Marketing management
 
716dumitrescu&stanciu&tichindelean&vinerean
716dumitrescu&stanciu&tichindelean&vinerean716dumitrescu&stanciu&tichindelean&vinerean
716dumitrescu&stanciu&tichindelean&vinerean
 
Focus on customers the psychology of buying behaviour
Focus on customers the psychology of buying behaviourFocus on customers the psychology of buying behaviour
Focus on customers the psychology of buying behaviour
 
Chapter 4
Chapter 4Chapter 4
Chapter 4
 
Ch1 cb
Ch1 cbCh1 cb
Ch1 cb
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 
Schiffam01
Schiffam01Schiffam01
Schiffam01
 
Chapter 1 - Introduction to Consumer Behavior
Chapter 1 - Introduction to Consumer Behavior Chapter 1 - Introduction to Consumer Behavior
Chapter 1 - Introduction to Consumer Behavior
 
25 Keys To Sales & Marketing 2
25 Keys To Sales & Marketing 225 Keys To Sales & Marketing 2
25 Keys To Sales & Marketing 2
 
Chapter one
Chapter oneChapter one
Chapter one
 
Chapter14
Chapter14Chapter14
Chapter14
 
Chapter 3 Market Segmentation
Chapter 3 Market SegmentationChapter 3 Market Segmentation
Chapter 3 Market Segmentation
 
role of sales promotion in FMCG Sector (Bathing Soaps)
role of sales promotion in FMCG Sector (Bathing Soaps)role of sales promotion in FMCG Sector (Bathing Soaps)
role of sales promotion in FMCG Sector (Bathing Soaps)
 
9 black box model 2015
9 black box model 20159 black box model 2015
9 black box model 2015
 
Consumer Behaviour
Consumer BehaviourConsumer Behaviour
Consumer Behaviour
 
BUNDLING OR UNBUNDLING
BUNDLING OR UNBUNDLINGBUNDLING OR UNBUNDLING
BUNDLING OR UNBUNDLING
 
L2 consumer behavior bho1171
L2 consumer behavior bho1171L2 consumer behavior bho1171
L2 consumer behavior bho1171
 

Viewers also liked

Viewers also liked (12)

Tgas sistem pncernaan
Tgas sistem pncernaanTgas sistem pncernaan
Tgas sistem pncernaan
 
World of Sport
World of SportWorld of Sport
World of Sport
 
Der
DerDer
Der
 
Den Haag
Den HaagDen Haag
Den Haag
 
3d mimari-modelleme
3d mimari-modelleme3d mimari-modelleme
3d mimari-modelleme
 
Premios Yeah’S 2008
Premios Yeah’S 2008Premios Yeah’S 2008
Premios Yeah’S 2008
 
El panel de control
El panel de controlEl panel de control
El panel de control
 
Brief
BriefBrief
Brief
 
Pro bono O.R. project guidelines
Pro bono O.R. project guidelinesPro bono O.R. project guidelines
Pro bono O.R. project guidelines
 
Jaguar
JaguarJaguar
Jaguar
 
Journal Club
Journal ClubJournal Club
Journal Club
 
Perilaku konsumen 1
Perilaku konsumen 1 Perilaku konsumen 1
Perilaku konsumen 1
 

Similar to C0342028031

International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)inventionjournals
 
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013J. Basic. Appl. Sci. Res., 3(12)18-25, 2013
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013Muhammad Bilal
 
Comparison on ads or not? Influence of Referent on Advertising Effectiveness
Comparison on ads or not? Influence of Referent on Advertising EffectivenessComparison on ads or not? Influence of Referent on Advertising Effectiveness
Comparison on ads or not? Influence of Referent on Advertising EffectivenessWaqas Tariq
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)inventionjournals
 
The effect of Sales promotion tools on brand image
The effect of Sales promotion tools on brand imageThe effect of Sales promotion tools on brand image
The effect of Sales promotion tools on brand imageinventionjournals
 
Literature review on sales promotions
Literature review on sales promotionsLiterature review on sales promotions
Literature review on sales promotionsMiraziz Bazarov
 
Marketing concepts pres1
Marketing concepts pres1Marketing concepts pres1
Marketing concepts pres1Virtu Institute
 
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...University of Duhok
 
Group-10207.-Fora-Paper-Presentation.pptx
Group-10207.-Fora-Paper-Presentation.pptxGroup-10207.-Fora-Paper-Presentation.pptx
Group-10207.-Fora-Paper-Presentation.pptxEzriCoda1
 
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCG
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCGDissertation ppt on ROLE OF SALES PROMOTION IN FMCG
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCGanonymous
 
Social issues in marketing
Social issues in marketingSocial issues in marketing
Social issues in marketingSidvin Shetty
 
Consumer Behavior notes mba unit number 1
Consumer Behavior notes mba unit number 1Consumer Behavior notes mba unit number 1
Consumer Behavior notes mba unit number 1LubnaZurar
 
Augmentation of promotion sensitivity for fmcg in india
Augmentation of promotion sensitivity for fmcg in indiaAugmentation of promotion sensitivity for fmcg in india
Augmentation of promotion sensitivity for fmcg in indiaIAEME Publication
 
Impacts of guerrilla advertising on consumer buying behavior
Impacts of guerrilla advertising on consumer buying behaviorImpacts of guerrilla advertising on consumer buying behavior
Impacts of guerrilla advertising on consumer buying behaviorAlexander Decker
 
Advertising - Strong vs. Weak
Advertising - Strong vs. WeakAdvertising - Strong vs. Weak
Advertising - Strong vs. WeakDeniz Kurugöllü
 

Similar to C0342028031 (20)

International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013J. Basic. Appl. Sci. Res., 3(12)18-25, 2013
J. Basic. Appl. Sci. Res., 3(12)18-25, 2013
 
Comparison on ads or not? Influence of Referent on Advertising Effectiveness
Comparison on ads or not? Influence of Referent on Advertising EffectivenessComparison on ads or not? Influence of Referent on Advertising Effectiveness
Comparison on ads or not? Influence of Referent on Advertising Effectiveness
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 
Marketing mix
Marketing mixMarketing mix
Marketing mix
 
Ch 13
Ch 13Ch 13
Ch 13
 
The effect of Sales promotion tools on brand image
The effect of Sales promotion tools on brand imageThe effect of Sales promotion tools on brand image
The effect of Sales promotion tools on brand image
 
Marketing
MarketingMarketing
Marketing
 
Literature review on sales promotions
Literature review on sales promotionsLiterature review on sales promotions
Literature review on sales promotions
 
Marketing concepts pres1
Marketing concepts pres1Marketing concepts pres1
Marketing concepts pres1
 
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
 
Group-10207.-Fora-Paper-Presentation.pptx
Group-10207.-Fora-Paper-Presentation.pptxGroup-10207.-Fora-Paper-Presentation.pptx
Group-10207.-Fora-Paper-Presentation.pptx
 
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCG
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCGDissertation ppt on ROLE OF SALES PROMOTION IN FMCG
Dissertation ppt on ROLE OF SALES PROMOTION IN FMCG
 
Social issues in marketing
Social issues in marketingSocial issues in marketing
Social issues in marketing
 
Consumer Behavior notes mba unit number 1
Consumer Behavior notes mba unit number 1Consumer Behavior notes mba unit number 1
Consumer Behavior notes mba unit number 1
 
Effect of Pull and Push Marketing Strategies in the Pharmaceutical Field
Effect of Pull and Push Marketing Strategies in the Pharmaceutical FieldEffect of Pull and Push Marketing Strategies in the Pharmaceutical Field
Effect of Pull and Push Marketing Strategies in the Pharmaceutical Field
 
262796541806
262796541806262796541806
262796541806
 
Augmentation of promotion sensitivity for fmcg in india
Augmentation of promotion sensitivity for fmcg in indiaAugmentation of promotion sensitivity for fmcg in india
Augmentation of promotion sensitivity for fmcg in india
 
Impacts of guerrilla advertising on consumer buying behavior
Impacts of guerrilla advertising on consumer buying behaviorImpacts of guerrilla advertising on consumer buying behavior
Impacts of guerrilla advertising on consumer buying behavior
 
Advertising - Strong vs. Weak
Advertising - Strong vs. WeakAdvertising - Strong vs. Weak
Advertising - Strong vs. Weak
 

Recently uploaded

Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaoncallgirls2057
 
Islamabad Escorts | Call 03274100048 | Escort Service in Islamabad
Islamabad Escorts | Call 03274100048 | Escort Service in IslamabadIslamabad Escorts | Call 03274100048 | Escort Service in Islamabad
Islamabad Escorts | Call 03274100048 | Escort Service in IslamabadAyesha Khan
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCRashishs7044
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation SlidesKeppelCorporation
 
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckHajeJanKamps
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africaictsugar
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailAriel592675
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Seta Wicaksana
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...lizamodels9
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCRashishs7044
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesKeppelCorporation
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 

Recently uploaded (20)

Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
 
Islamabad Escorts | Call 03274100048 | Escort Service in Islamabad
Islamabad Escorts | Call 03274100048 | Escort Service in IslamabadIslamabad Escorts | Call 03274100048 | Escort Service in Islamabad
Islamabad Escorts | Call 03274100048 | Escort Service in Islamabad
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
 
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detail
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 

C0342028031

  • 1. International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 3 || Issue 4 || April 2014 || PP.28-31 www.ijbmi.org 28 | Page The effect of sales promotion tools on behavioral responses Mohamad Yaman Obeid Marketing and International Trade Department Higher Institute of Business Administration Syria –Damascus Ymano9@yahoo.com ABSTRACT: The role of sales promotion devices and need to be able to assess the effectiveness of these tools. Consumer response (brand switching, purchase acceleration, , spending more) to Four different sales promotion tools(price discounts, Free gift, games, and extra free product get one free') was investigated through a survey of 400 student on Higher institute of business administration on Syria. Price discounts and extra free product were felt by the consumers to be the most effective promotional tools for inducing purchase responses. Sweepstakes and games, in contrast, were felt to be relatively ineffective in terms of generating all types of consumer response. KEY WORDS: Sales promotion, Purchase intentions I. INTRODUCTION: Sales promotions are a key marketing tool in communication programs. According to the Chartered Institute of Marketing’s (2009) Marketing Trends Survey, sales promotion accounts for at least 13 per cent of UK marketing budgets. Similarly, the 2008 and 2009 PROMO Industry Trends Reports (Penton Media, 2008, 2009) show that despite sales promotions having experienced a decelerating growth due to the economic conditions, they are recovering faster from the recession compared to traditional media (e.g. advertising, mass media).Sales promotion comprises a wide variety of promotional tools designed to achieve short-term objectives (Huff et al., 1999). Monetary promotions, such as price discounts and coupons, are the most common form of sales promotions used by organizations. However, non-monetary promotions, such as free gifts, free samples, sweepstakes and contests, are gaining popularity given the negative effects of frequent discounts. II. LITERATURE REVIEW: Promotion is one of the techniques to attract consumers to purchase more or try a product or service. Severe outcomes of promotion included sales increased, quantify of stock used and attract new consumers.For example, price promotion refers to temporary price reduction which offers to consumers. The characteristic is the retailer would label a specific percentage or cash saving for the products or services. Previous studies indicated that a sudden increase of sales would experience by retailers because of price-conscious of consumers (Banks & Moorthy, 1999; Kopalle & Mela, 1999; Smith & Sinha, 2000; Gilbert & Jackaria, 2002). According to (Blackwell, Miniard and Engel, 2001), price discounts played significant roles in influencing consumer product trial behavior by which indirectly attract new consumer. Promotion technique of "buy-one-get-one-free" is one of the types of bonus packs in which the consumers are offered the additional product at the ordinary price but are in an enhanced package. Consumer would be easily persuaded to buy products as there is no extra cost need and more valuable perceived by consumers (Sinha & Smith, 2000). Besides, this promotion technique would beneficial to retailers in speed up the stock clearance compared to price promotions (Li, Sun & Wang, 2007). Games such as sweepstakes (known locally as 'lucky draws') are used by supermarkets to attract traffic. People participate in these games for reasons such as the perceived value of the prize, or perceived fun and interest(Ward & Hill 1991). This particular sales promotion tool has received rather limited research attention, but so-called sweepstakes and games are a very popular form of sales promotion in Hong Kong. Sweepstakes and lucky draws permeate not only shopping life in Hong Kong, but also social life, with lucky draws being held at most social gatherings.Of the non-monetary promotional tools, gifts or premiums are becoming increasingly important in promotional strategies (Raghubir, 2005; Banerjee, 2009; Palazo´n and Delgado, 2009). A gift or premium is a product or service offered free, or at a relatively low price, in return for the purchase of one or many products or services (d’Astous and Landreville, 2003). Surprisingly, while gift promotions are widely used in marketing, academic research into this subject is limited (d’Astous and Landreville, 2003; Bodur and Grohmann, 2005; Prendergast et al., 2008). As such, manufacturers tend to make decisions about gift promotions on the basis of experience and intuition (Hiam, 2000; d’Astous and Landreville, 2003).
  • 2. The effect of sales promotion tools on behavioral responses www.ijbmi.org 29 | Page Consequently, gift promotions do not always achieve their objectives, such as significantly increasing sales (Gedenk et al., 2004).(Beerli and Martin Santana , 1999) have suggested that the best way to evaluate individual responses to advertising/promotion is based on the three dimensions (stages) of cognition, affection and conation. The hierarchy of effects model proposed by (Lavidge and Steiner , 1961) uses the same three dimensions to form its underlying mechanism. The hierarchy of effects model, or variants of it, has dominated the advertising literature since the1960s (Vakratas & Ambler 1999), and even then the emphasis has traditionally been on purchasing behavior measures such as sales, market share, loyalty and brand choice. Many marketing researchers in fact have treated conation as the consumer's behavioral response (Schiffman & Kanuk, 2000).Intention to buy is one of the most widely used measures for the conative stage (Beerli & Martin Santana 1999). Despite the hierarchy in recent years being criticized because the effects may not necessarily follow a temporal sequence (Vakratas & Ambler 1999), it continues to be applied either wholesale or in part, not only in advertising, but in sales promotion too. For instance, (Laroche et al,2003) explained sales promotion in the context of a cognitive-affective- behavioral model and suggested that relative to other tools in the marketing mix, sales promotion has the strongest effect on the last stage. Since, traditionally, sales promotion has had a sales objective, studies of sales promotion have tended to focus on the conative/behavioral stage. This is hardly surprising, especially given the growing emphasis on 'marketing productivity' (Rust etal. 2004).Previous research has shown that sales promotion can encourage behavioral responses such as brand switching, stockpiling, purchase acceleration, product trial and spending larger amounts. Looking first at brand switching, from an economic perspective (price) promotions induce a brand switch by increasing the utility of a brand that otherwise would not have been purchased. From a behavioral perspective, transaction utility. III. RESEARCH QUESTION: ONE SPECIFIC FORM OF BEHavioral response may be induced by more than one promotional tool. For instance, new product trial may result from a price discount, a coupon specific to the product or an in-store demonstration.Similarly, one specific sales promotion tool may induce more than one type of consumer response , This research was designed to examine the linkages between different sales promotion tools and the responses of consumers in Syria. the following research question is proposed: RQ: Which sales promotion techniques (among price discounts, sweepstakes, and extra free product, and free gift are most effective in inducing consumer responses (of brand switching, purchase acceleration, spending more) in Syria? IV. METHODOLOGY: In this study 2 promotion type(price discount, premium. Games, extra free product) between-subjects experimental design was employed. The data for the empirical study were obtained from a controlled experiment involving undergraduate and post graduate students. V. SAMPLE AND PROCEDURE: Data were collected from a 400-student sample at Higher institute of business administration (Syria) , The students were distributed in four similar size groups which were actually practice groups of a subject. The information to contrast hypotheses was obtained by means of a survey adapted to the experimental conditions of each group. At the beginning of the session each participant was given a questionnaire with two differentiated parts and they were asked to complete the first part. After this, a PowerPoint presentation which simulated the purchase conditions of the product and brand corresponding to each group was performed in the classroom. At the end of the practical session, the participants had to answer the second part of the survey. VI. MEASURES: The dependent variables used to evaluate promotional effectiveness are perceived value, buying intention, and search intention. All of them were evaluated on a 5-point Likert scale, anchored by “Disagree Strongly” and “Agree Strongly.” Perceived value was measured with seven items based on (Chandon, Wansink, and Laurent, 2000) and (d’Astous and Jacob ,2002). The items were as follows: (1) I like this type of promotion; (2) I wish there were more promotions like this; (3) This promotion offer incites me to buy the product; (4) This promotion offer is of great value; (5) This promotion offer is original; (6) This promotion offer pleases me; and (7) This promotion offer interests me. The two-item buying intention measure (anchored by “Very Low” and “Very High”) is based on (Grewal, Monroe, and Krishnan ,1998).
  • 3. The effect of sales promotion tools on behavioral responses www.ijbmi.org 30 | Page The items were as follows: (1) The probability that I would consider buying this product is; (2) The likelihood that I would purchase this product is.The three item behavioral responses (anchored by “Disagree Strongly” and “Agree Strongly”) is based on (Zhengshi. et al,2005).The items were as follows:(1) This promotion has led me to buy another brand which I do not regularly buy,(2) This promotion has led me to buy the product earlier than planned,(3) this promotion has led me to buy more quantities of the same product. VII. FINDINGS: The effectiveness of the promotional tools used by Syrian customers supermarkets was analyzed by compared the three different buying behaviors induced by individual promotional tools. Through this comparison, the five behaviors in response to each of the Three tools were ranked, and thus the effectiveness of each specific tool in inducing each of the five behaviors was identified as Table 1 shows: Table(1): Mean behavioral response to the five sales promotion tools: Price Discount Free gift Extra free product games Sig Brand switching 3.92 3.71 3.89 2.67 0.00 purchase acceleration 4.04 3.61 3.86 2.95 0.00 Spending more 3.99 3.68 3.58 3.06 0.00  Price discount: One way Anova was carried out to compare the five different buying behaviors in response to price discounts. The results indicate significant differences among the three buying behaviors From Table (1) We see that price discounts are more effective in inducing the behaviors.  Free gift : The same tests were conducted for the second promotion tool (free gift) The results were again statistically significant, free gift were described as relatively more effective in inducing three buying behaviors from games and less effective from price discount and extra free product.  Extra free product: The same tests were conducted for the third promotion tool (extra free product) The results were again statistically significant, extra free product were described as relatively more effective in inducing three buying behaviors from games and free gift and less effective from price discount  Games: The same tests were conducted for the fourth promotion tool (games) The results were again statistically significant, games were described as relatively the less effective in inducing three buying behaviors from another sales promotion tools. VIII. CONCLUSION: This research has helped to elucidate the response of consumers to the sales promotion activities most commonly used by Syrian market. Specifically, the study has generated a comparison of the different buying behaviors induced by one particular promotional tool and a comparison of the effectiveness of the different promotional tools in inducing one particular buying behavior. This latter comparison in particular should help marketers appreciate which tool is relatively more effective in obtaining a given promotional outcome.Price discounts, extra free product offers were found to be the most effective for encouraging brand switching, purchase acceleration and additional spending.On the other hand, sweepstakes and games were found to be relatively less effective in inducing the three behaviors investigated.Finally, this research was conducted in Syria only Future research therefore needs to examine if the results found in Syria are similar to those found in other countries where consumers have different cultural perceptions (e.g. perceptions of luck) and different living environments(e.g. storage space in the home, retailer concentrations). REFERENCES: [1]. Banks, J., and Moorthy, S. (1999). A Model of Price Promotion. International Journal of Industrial Organization, 17, 371- 98. [2]. Beerli, A. & Martin Santana, J. (1999) Design and validation of an instrument for measuring advertising effectiveness in the printed media. Joumal of Current Issues and Research in Advertising, 21(2), pp. 11-30. [3]. Bodur, H.O. and Grohmann, B. (2005), “Consumer responses to gift receipt in business-to-business consumer contexts”, Psychology and Marketing, Vol. 22 No. 5, pp. 441-56. [4]. Blackwell, R. D. Miniard, P. W., and Engel, J. F. (2001). Consumer Behavior. Forth Worth, TX: Harcourt College Publisher.
  • 4. The effect of sales promotion tools on behavioral responses www.ijbmi.org 31 | Page [5]. Chartered Institute of Marketing (2009), Marketing Trends Survey Spring 2009, Chartered Institute of Marketing, Maidenhead. [6]. Gedenk, K., Lutzky, C., Schultze, T. and Teichmann, M.H. (2004), “Premium promotions-drivers of their success”, Proceedings of the 33rd EMAC Conference, Murcia, Spain. [7]. Gilbert, D. C, and Jackaria. N. (2002). The Efficacy of Sales Promotions hi UK Supermarkets: A Consumer View. [8]. International Journal of Retail and Distribution Management, 30(6), 315-322. d’Astous, A. and Jacob, I. (2002), “Understanding consumer reactions to premium-based promotional offers”, European Journal of Marketing, Vol. 36 Nos 11/12, pp. 1270-86. [9]. Hiam, A. (2000), “Match premiums to marketing strategies”, Marketing News, Vol. 34, p. 12. [10]. Huff, L.C., Alden, D.L. and Tietje, B.C. (1999), “Managing the sales promotion mix: brand managers’ response to sales promotions”, Journal of Promotion Management, Vol. 5 No. 1, pp. 77-89. [11]. Kopalle, P. K., and Mela, C. F. (1999). The Dynamic Effect of Discounting of Sales: Empirical Analysis and Normative Pricing Implication. Marketing Science, 18 (13), 317-32. [12]. Laroche, M., Pons, E, Zgolli, N., Cervellon, M. & Kim, C. (2003) A model of consumer response to two retail promotion techniques. Joumal of Business Research56,July, pp. 513-522. [13]. Li, S., Sun, Y., and Wang, Y. (2007). 50% Off or Buy One Get One Free? Frame Preference as a Function of Consumable Nature in Dairy Products. The Joumal of Social Psychology, 147(4), 413-421. [14]. Palazo´n, M. and Delgado, E. (2009a), “Effectiveness of price discounts and premium promotions”, Psychology and Marketing, Vol. 26 No. 12, pp. 1108-29. [15]. Prendergast, G.P., Poon, D.T.Y., Tsang, A.S.L. and Fan, T.Y. (2008), “Predicting premium proneness”, Journal of Advertising Research, Vol. 48 No. 2, pp. 287-96. [16]. Penton Media (2009), PROMO Industry Trends Report, Penton Media, New York, NY. [17]. Raghubir, P. (2004), “Free gift with purchase: promoting or discounting the brand?”, Journal of Consumer Psychology, Vol. 14, pp. 181-5. [18]. Rust, R.T., Ambler, T, Carpenter, G., Kumar, V. & Srivastava, R.K. (2004) Measuring marketing productivity: current knowledge and future directions. Journal of Marketing, October, pp. 76-89. [19]. Smith, M., and Sinha, I. (2000). The Impact of Price and Extra Product Promotions on Store Preference. International Journal of Retail and Distribution Management, 28(2/3), 83-92. [20]. Vakratas, D. & Ambler, T. (1999) How advertising works: what do we really know? Journal of Marketing, 63(1), pp. 26- 44. [21]. Ward, J.C. & Hill, R.P. (1991) Designing effective promotional games: opportunities and problems. Journal of Advertising, 20(3), pp. 69-81.