Impact of sales Promotion's benefits on perceived value: Does product category moderate the results?

Published on Jan 1, 2020in Journal of Retailing and Consumer Services
· DOI :10.1016/J.JRETCONSER.2019.101887
Somesh Kumar Sinha2
Estimated H-index: 2
(NIT-B: Maulana Azad National Institute of Technology),
Priyanka Verma4
Estimated H-index: 4
(NIT-B: Maulana Azad National Institute of Technology)
Sources
Abstract
Abstract The purpose behind the development of this research article is to assess the impact of sales promotions benefits on consumer perceived value and examine the moderating effect of product categories on the relation between sales promotions, their benefits, and consumer perceived value. The study used a sample of 400 consumers from India and ‘Structure Equation Modelling’ technique is applied to evaluate the research assumption. Finally, the moderating effect of the product category is evaluated by utilizing ‘Multi-Group Analysis' technique. Research findings reveal that the product category moderates the consumer's perceived value for hedonic and utilitarian benefits of sales promotion tools. It is found that utilitarian benefits of sales promotion have more impact on consumer perceived value in the context of personal care product while hedonic benefits are having more impact on consumer perceived value in the context of food products. A sales promotion plan can be made more effective when it is hedonic benefit oriented in the case of food products and utilitarian benefit oriented in the case of personal care products. The findings of this research can be useful for marketers to develop an effective sales promotion strategy considering the category wise differential impact of sales promotions benefits.
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