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)
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.
📖 Papers frequently viewed together
3 Authors (Pierre Chandon, ..., Gilles Laurent)
13 Citations
39 Citations
1 Citations
#1Somesh Kumar Sinha (NIT-B: Maulana Azad National Institute of Technology)H-Index: 2
#2Priyanka Verma (NIT-B: Maulana Azad National Institute of Technology)H-Index: 4
Sales promotion is known for providing additional benefits to the consumers and these benefits may have an impact on the development of consumer-based brand equity. Although previous studies have reported a positive influence of sales promotion on brand equity, but the impact of sales promotion’s benefits (i.e., hedonic and utilitarian benefits) on brand equity is less understood. This study examined the possible influence of sales promotion’s hedonic and utilitarian benefits on four compone...
3 CitationsSource
#1Malika Chaudhuri (UD: University of Dayton)H-Index: 4
#2Roger J. Calantone (MSU: Michigan State University)H-Index: 92
Last. Seth Cockrell (WSU: Wichita State University)H-Index: 1
view all 4 authors...
Abstract The typical firm invests 20% of its promotional budget on sales promotions in an effort to drive short-term sales, Limited insight into the differential impacts of various sales promotions as well as the conditions under which they are most effective in lifting the sales of new products remain despite the rich body of research on sales promotions in the marketing literature. This research seeks to address these gaps by demonstrating the effects of two types of sales promotions on high-v...
5 CitationsSource
#1Gopal Das (IIMA: Indian Institute of Management Ahmedabad)H-Index: 17
#1Gopal Das (IIMA: Indian Institute of Management Ahmedabad)H-Index: 1
Last. Ronn J. Smith (UA: University of Arkansas)H-Index: 13
view all 3 authors...
Abstract With the need among retailers to create effective promotional campaigns, scarcity, and popularity cues are increasingly used. Drawing from regulatory focus and popularity versus scarcity cues literature, this research explores the impact of popularity versus scarcity cues and product types on consumer perceptions of risk, product uniqueness, and purchase intentions. Results from three studies provide primary insights: (1) A utilitarian product aligns with prevention goals and hence the ...
23 CitationsSource
#1Shih-Ping Jeng (NTOU: National Taiwan Ocean University)H-Index: 1
Abstract This study gauges customer perspectives to investigate how return policy generosity (the degree to which a retailer imposes minimal restrictions on returns) influences customer-perceived value and customer purchase intention. It also examines two moderators, retailer brand familiarity (the extent to which the retailer brand is well-known) and product categories (the difference between products with respect to the magnitude of effort required to make a return). An experiment with a 2 × 2...
27 CitationsSource
#1Svetlana Bogomolova (UniSA: University of South Australia)H-Index: 14
#2Marietta SzaboH-Index: 1
Last. Rachel Kennedy (UniSA: University of South Australia)H-Index: 12
view all 3 authors...
Consumer price promotions account for more than half of many manufacturers' marketing budgets, and require a significant time investment to manage. Amidst the considerable research on price promotions, little academic attention has been paid to how manufacturers and retailers make price-promotion decisions. Based on in-depth interviews with a broad range of managers, this study investigates factors that influence price-promotion decisions in durable and consumer goods industries. Findings sugges...
18 CitationsSource
#1Hsin-Hsien Liu (NUK: National University of Kaohsiung)H-Index: 9
#2Hsuan-Yi Chou (NSYSU: National Sun Yat-sen University)H-Index: 1
Research on consumer decision making has mainly focused on individual products; however, many products are purchased with other items as part of a promotional package. This paper explores how the characteristics (hedonic versus utilitarian) of the items in freebie promotional packages (e.g., buy one item and get a different item for free) influence consumers' preference for the promotional package. Additionally, the authors examine how the characteristics of the focal item influence consumers' c...
8 CitationsSource
#1Ran Kivetz (Columbia University)H-Index: 21
#2Yuhuang Zheng (THU: Tsinghua University)H-Index: 6
Abstract Because it is harder to justify hedonic purchases than utilitarian purchases, it is proposed that promotions will have a stronger positive effect on the purchase likelihood of hedonic than utilitarian products. This and related propositions are tested in multiple studies using a variety of product categories and promotions. The results demonstrate that promotions are more effective in driving purchase decisions when: (a) the product is hedonic rather than utilitarian; (b) the product is...
39 CitationsSource
#1Jay P. Carlson (Clarkson University)H-Index: 5
#2Danny Weathers (Clemson University)H-Index: 10
Last. Scott D. Swain (Clemson University)H-Index: 14
view all 3 authors...
In conveying product size increases, manufacturers use labeling tactics that can be classified as “bonus packs” (more for the same price) or “product enlargements” (more, but no mention of price). One study shows that when consumers do not know a product’s original size and price, attitudes are more favorable toward a bonus pack than an economically equivalent product enlargement. This difference disappears when consumers know the original product size and price. A second study shows that, less ...
7 CitationsSource
#1Maik Eisenbeiss (University of Bremen)H-Index: 8
#2Robert Wilken (ESCP Europe)H-Index: 13
Last. Markus Cornelissen (WWU: University of Münster)H-Index: 1
view all 4 authors...
Abstract Deal-of-the-day (DoD) promotions are nowadays very popular. As a special form of a price promotion, they allow firms to offer products at substantial price discounts, usually at or above 50%, for a very limited period of time, usually between one and seven days. Conventional wisdom suggests that both characteristics, high discount levels and tight time constraints, should make DoDs an effective form of a price promotion. However, the two characteristics do not necessarily combine to inc...
26 CitationsSource
#1Tilottama G. Chowdhury (Quinnipiac University)H-Index: 9
#2Camelia C. Micu (Fairfield University)H-Index: 7
Last. Eunjin (Anna) Kim (SMU: Southern Methodist University)H-Index: 6
view all 4 authors...
Prior research has distinguished between ad message frames that are promotion-focused (i.e., eager-sounding and achievement-oriented) and those that are prevention-focused (i.e., vigilance-hued and safety-themed). In three studies, the authors investigate the relative persuasiveness of promotion- versus prevention-focused messages in the context of different decision tasks (i.e., acquisition vs. forfeiture) and different types of featured products/attributes (i.e., hedonic vs. utilitarian). Stud...
7 CitationsSource
Cited By18
#1Sushant Kumar (IIMA: Indian Institute of Management Ahmedabad)H-Index: 5
#2Shalini TalwarH-Index: 12
Last. Amandeep Dhir (NWU: North-West University)H-Index: 29
view all 5 authors...
Abstract null null Natural personal care products are gaining popularity due to their benefits in terms of health and well-being. However, consumers are wary of these products and are guided by the fake news circulating about them. Since natural product consumption offers several personal and environmental benefits, it would be worthwhile to understand consumers’ tendency to let fake news influence their consumption decisions. Accordingly, the current study examined the association of fake news ...
#1Xi Li (ECJTU: East China Jiaotong University)H-Index: 25
#1Xi Li (ECJTU: East China Jiaotong University)H-Index: 1
Last. Jiaying Zhou (Osaka University)
view all 5 authors...
Abstract This study investigates how promotional activities, mall size, and past shopping experiences affect customer shopping duration, and elucidates how shopping duration induces immediate, transient, and long-term effects on customer decisions of whether and how much to buy in the offline shopping mall format. We simultaneously model purchase incidence, purchase amount, and shopping duration to examine empirically the constructs’ dynamic impacts. The proposed model is calibrated using six-ye...
#1Wee-Kheng Tan (NSYSU: National Sun Yat-sen University)H-Index: 9
#2Ping-Hsin Liao (NSYSU: National Sun Yat-sen University)
Service sector companies, like cafes and convenience stores, have introduced applications (apps) that permit customers (givers) to gift beverages to their acquaintances (receivers), who redeem the gift at a convenient outlet. Using social capital theory, affective forecasting theory, and hedonic-utilitarian duality, this study investigates adoption and (continual) use of gift-giving apps. The partial least squares analysis on 223 giver-users and 335 giver-non-users showed that bonding and bridgi...
#1Putri Utami Ruswandi (IPB: Bogor Agricultural University)
#2Hartoyo Hartoyo (IPB: Bogor Agricultural University)H-Index: 8
Last. Mukhamad Najib (IPB: Bogor Agricultural University)H-Index: 5
view all 0 authors...
Current technological advances, especially the Internet of Things (IoT), are widely used by people in their daily lives to transact, communicate, and find various information. The research analyzed the effectiveness of promotions carried out by companies based on the concept of marketing communication from technological developments, namely the Attention, Interest, Search, Action, and Share (AISAS) model, and how to increase consumer purchases. The research applied a descriptive approach by dist...
13 CitationsSource
Abstract Obesity rates are increasing worldwide, with an alarming number of associated co-morbidities and deaths. Evolutionary psychology explains this development with an inherent preference for fatty and sweet foods. Recent evidence shows that consumers with a low socioeconomic status are more prone to being obese, but also that consumers with few resources respond more to scarcity signals. Based on this background, this paper investigates whether overweight individuals with a low income respo...