Researches take the product involvement level into account.

Researches on sales promotions have
been concentrated on the influence of sales promotions (mostly price
promotions) on short-term sales revenue, profits; on purchasing behavior during
and post promotional period. However, few research pays attention to the
long-term effect of promotions on brand loyalty, especially the potential
effect of non-price promotions on brand equity. Therefore, this study
deliberates and contribute to the current literature in the field of promotion
marketing; particularly, it extends the knowledge on how various categories of
sales promotions affect the way consumers choose one brand over the others, and
take the product involvement level into account.

It was suggested that sales promotions
will behave differently regarding their long-term influence on reference price
which is the internal price that consumers perceive based on how beneficial the
product is to them. Consumers perceive a gain when what they have to pay is
lower than the internal price; and vice versa, a loss is perceived when the internal
price is lower than the observed price1.

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These beliefs were firmly reinforced
by the studies of behavioral shaping by Rothschild and Gaidis, Peter and Nord.

Findings of this study also indicate that consumers respond to sales promotions
with different motives which help explain the underlying reasons why consumers
sometimes are willing to spend more money using the promotion “premium offers”
rather than save some money by using “discounts”; and why price promotions do
not always lead to positive results as expected.

Marketing professionals could better actively
forecast the way consumers respond to sales promotions programs by
differentiating the offered benefits of promoted products, and optimizing the
benefit congruency. Additionally, this study proposes that the proneness to
sales promotions should be segmented based on hidden benefits that consumers
seek for instead of their inclination to deal or their perception towards
values. The benefit approach in segmenting would help drive promotions to
targeted consumers who are most responsive to them. Likewise, grouping sales
promotions based on offered benefits (utilitarian or hedonic) rather than forms
of promotions will be more effective.



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