Retailers’ Vs Customers’ views on usage of Sales Promotion as Communication tool
Keywords:
Retail sales promotion, Retail Communication Mix, Retail Communication GapAbstract
The objective of this research paper is to understand the Communication mix strategies adopted by organized retail sector specially related with sales promotion as a communication tool, and to identify and analyze communication gap between the views of retailer and customer regarding the usage of sales promotion techniques as communication tool. From a marketing perspective, sales promotion is one component of promotion. Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price). For this study researcher consider sales promotion techniques are Price Off, Coupons, Samples, Extra Product, Free Product, Contest, and Product Bundling. While deciding the sample size of retailers, researcher used disproportionate stratified sampling techniques. The actual survey was conducted amongst store managers of supermarkets, department stores and hypermarket in Pune and PCMC area. Along-with, the primary data was collected amongst customers also. Total 63 store managers and 200 customers were covered for this study. Researcher found out that organized retailers commonly used Price off (92%), Extra Product (70%), Free Products (89%) and Product Bundling (80%) to communicate with the customers. In this study, researcher also found out positive & negative communication gap between the views of retailer and customer.
References
Ailawadi K.L. and Neslin S.A. (1998). The Effect of Promotion on Consumption: Buying More and Consuming it Faster, Journal of Marketing research, 35(3), 390-398
Bawa K. and Shoemaker, R. W. (1987). The Coupon Prone Consumer: Some Findings based on Purchase Behavior across Product Classes, Journal of Marketing, Vol. 51( 4), 99-110
Bawa, Kapil, Srini S. Srinivasa and Srivastava, Rajinder, K. (1997). Coupon Attractiveness and Coupon Proneness: A Framework for Modelling Coupon Redemption, Journal of Marketing research, 34(4), 517-25.
Bearden W. O., Lichtenstein D. R. and Teel J. E.(1984). Comparison Price, Coupon and Brand Effects on Consumer Reactions to Retail Newspaper Advertisements, Journal of Retailing, Vol. 60 (2), 11-35
Bell D.R., Chiang J. and Padmanabhan V. (1999). The Decomposition of Promotional Response: An Empirical Generalization, Marketing Science, 18(4), 504-526.
Berkowitz, E.N. and Walton, J. R. (1980). Contextual Influences on Consumer Price Responses: An Experimental Analysis, Journal of Marketing research, Vol. 17 (3), 349-359.
Blattberg R. and Scott A. Neslin (1990). Sales Promotion: Concepts, Methods and Strategies. Englewood Cliffs, NJ: Prentice Hall.
Blattberg R.C, Briesch R. and Fox E.J. (1995). How Promotions Work, Marketing Science, Vol. 14(3),G122-132.
Blattberg R.C. and Wisniewski W.J. (1989). Price Induced Patterns of Competition, Marketing Science, 8(4), 291-309.
Blattberg R.C., Eppen G.D. and Lieberman J. (1981). A Theoretical and Empirical Evaluation of Price Deals for Consumer Nondurables, Journal of Marketing, 45(1), 116-129.
Business Line, (Thursday, Dec 05, 2002). http://www.blonnet.com/catalyst/2002/12/05/stories/2002120500030200.htm
Campbell, L. and Diamond, W. D. (1990). Framing and Sales Promotion: the Characteristics of a Good Deal, Journal of Consumer Marketing, 7(4), 25-31
Chandon, Pierre (1995). Consumer research on Sales Promotions: A State-of-the-art Literature Review, Journal of Marketing Management, 11 (5), 419-441.
Chandon, Pierre, Brian Wansink, and Gilles Laurent (2000). A Benefit Congruency Framework of Sales Promotion Effectiveness, Journal of Marketing, 64 (4), 65-81.
Chandon, Pierre; Wansink, Brian; Gilles Laurent (1999). Hedonic and Utilitarian Consumer Benefits of Sales Promotions. Marketing Science Institute Working paper No 99-109 Cambridge, MA, Marketing Science Institute.
Chen, S.-F.S., Monroe, K.B. and Lou, Y.-C. (1998). The effects of framing price promotion messages on consumers’ perceptions and purchase intentions, Journal of Retailing, 74 (3), 353-372.
Cooke, Ernest F., (May 23, 1983). What is Sales Promotion?, paper presented at Sales Promotion Workshop, Babson College.
Courtney, Alice E. & Thomas W. Whipple (1983). Sex Stereotyping in Advertising. Lexington, Massachusetts: Lexington Books
Cox Direct. (1997). 19th Annual Survey of Promotional Practices. Largo, FL. http://www.pmalink.org/ research/coupons.asp
D’Astous A. Landreville V. (2003). An Experimental Investigation of Factors Affecting Consumers’ Perceptions of Sales Promotions. European Journal of Marketing, 37(11-12), 1746-1761
Davis S. J., Inman J. and McAlister L. (1992). Promotion has a Negative Effect on Brand Evaluations – Or Does it ? Journal of Marketing research, 29 (1), 143-149.
Dawar, Niraj and Amitava Chattopadhyay (2000). Rethinking Marketing Programs for Emerging Markets, William Davidson Institute Working Paper Number 320, Michigan Ross School of Business.
Della Bitta, A. J, Monroe, K. B and McGinnis J. M. (1981). Consumer Perception of Comparative Price Advertisements, Journal of Marketing research, 18 (4), 416-428
Dhar, Sanjay K. And Jagmohan S. Raju (1998). The Effects of Cross-Ruff Coupons on Sales and Profits, Management Science, 44 (11), Part I of II, 1501-1516.
Diamond W.D., and Campbell, L. (1989). The Framing of Sales Promotions: Effects on Reference Price Change, Advances in Consumer research, 16, 241-247.
Diamond, William D.; Johnson, Robert R. (1990). The Framing of Sales Promotions: An Approach to Classification, Advances in Consumer research, 17(1), 494-500
Dodson, J. A., Tybout, A.M. and Sternthal B. (1978). Impact of Deals and Deal Retraction on Brand Switching, Journal of Marketing research, 15(1). 72-81.
Economist, The, Feb 19th (2004). India’s bright new hopes, EQUANT Feature on Emerging Market dated April 2004, Retrieved on March 2004 http://www.equant.com/content/xml/col_apr04_emerging_markets.xml
Foxman, Ellen R., Tansuhaj, Patriya S and Wong, John K. (1988). Evaluating Cross-National sales Promotion strategy: An Audit Approach, International Marketing Review, Vol. 5 (4), 7-15.
Furnham, Adrian and Twiggy Mak (1999). Sex-Role Stereotyping in Television Commercials: A Review and Comparison of Fourteen Studies Done on Five Continents Over 25 Years, Sex Roles, 41, 413-437.
Griffin, M., Viswanath, K., & Schwartz, D. (1994). Gender advertising in the U.S. and India: Exporting cultural stereotypes. Media, Culture & Society, 16, 487-507
Grover R. and V. Srinivasan, (1992). Evaluating the Multiple Effects of Retail Promotions on Brand Loyal and Brand Switching Segments, Journal of Marketing research, 2991),76-89.
Guadagni, P. M., and Little J. D.C. (1983). A Logit Model of Brand Choice Calibrated on Scanner Data, Marketing Science, 2(3), 203-238.
Gupta, S. and Cooper L.G. (1992). The Discounting of Discounts and Promotion Thresholds, Journal of Consumer research, 19 (3), 401-411
Gupta, S., (1988). Impact of Sales Promotion on When, What, and How Much to Buy, Journal of Marketing research, 25(4), 342-355.
Huff, Lenard; Dana L. Alden (1998). An Investigation of Consumer Response to Sales Promotion in Developing Markets: A Three-Country Analysis, Journal of Advertising research, 38 (3), 47-57.
India Market Demographics Report (2002). National Council for Applied Economic research, India.
Kahn B. and Loui, T.A.(1990). Effects of Retraction of Price Promotions on Brand Choice Behavior for Variety Seeking and Last Purchase Loyal Consumers, Journal of Marketing research, 27(3),279-89.
Kalwani M.U. and Yim C.H.(1992). Consumer Price and Promotion Expectations, Journal of Marketing research, 29 (1), 90-100.
Kamakura W. and G.J. Russell (1989). A Probabilistic Choice Model for Market Segmentation and Elasticity Structure, Journal of Marketing research, 26(4), 379-391
Kashani, Kamran and Quelch, John (1990). Can Sales Promotions go Global, Business Horizons, 33(3), 37-43.
Kotler, P. (1988). Marketing Management. Prentice-Hall Publication New Jersey.
Kotler, P. (2002). Marketing Management. Prentice-Hall Publication.
Krishnamurthi, Lakshman and S.P. Raj (1991). An Empirical Analysis of the Relationship Between Brand Loyalty and Consumer Price Elasticity, Marketing Science, 10 (2),172-183.
Kumar V. and Leone R. P. (1988). Measuring the Effect of Retail Store Promotions on Brand and Store Substitution, Journal of Marketing research, 25(2), 178-185.
Lattin M., J. and Bucklin R. E. (1989). Reference Effects of Price and Promotion on Brand Choice Behavior, Journal of Marketing research, 26(3 ), 299-310
Lysonski, Steven, Srini Durvasula and Yiorgos Zotos (1996). Consumer Decision Making Styles: A Multi-Country Investigation, European Journal of Marketing, 30(12), 10 – 21
Mela, Carl F., Sunil Gupta, and Donald R. Lehmann (1997). The Long Term Impact of Advertising and Promotions on Consumer Brand Choice, Journal of Marketing research, 34, (2), 248-261.
Neslin, S., Henderson C., and Quelch J., (1985). Consumer Promotions and the Acceleration of Product Purchases, Marketing Science, 4(2), 147-165
Nunes, J.C., and C. Whan Park, (2003). Incommensurate Resources: Not Just More of the Same. Journal of Marketing research, 40(1), 26–38.
PROMO Magazine annual report 2004 (Downloaded on 25th August 2004) http://www.pmalink.org/ annual_studies.asp, & www.promomagazine.com .
Promotion Marketing Association Reports (Downloaded on 25th August 2004) http://www.pmalink.org/about/ press_releases/release41.asp
Raghubir P. and Corfman K. (1999). When Do Price Promotions Affect Pre-Trial Brand Evaluation?, Journal of Marketing research, 36 211-22.
Raghubir, Priya (2004). Free Gift with Purchase: Promoting or Discounting the Brand?, Journal of Consumer Psychology, 14(1/2), 181-188
Raghubir, Priya; Inman, J. Jeffrey; Grande (2004). The Three Faces of Consumer Promotions, California Management Review, 46(4), 23-42
Raju, J,S.,(1995). Theoretical Models of Sales Promotions Contributions, Limitations, and a Future research Agenda, European Journal of Operational research, 85, 1-17
Raju, J.S.(1992). The Effect of Price Promotions on Variability in product category sales, Marketing Science, 11(3), 207-220
Sawyer Alan, Peter Dickson (1984). Psychological perspectives on consumer response to sales promotion, in research on Sales Promotion: Collected Papers, Ed. K. Jocz, Marketing Science Institute, Cambridge MA 1-21.
Shimp, T.A. (1993). Promotional Management and Marketing Communications, 3rd edn Dryden, Chicago.
Smith M.F. 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.
Taylor, G.A. (2001). Coupon Response in Services, Journal of Retailing, 77(1) 139-151
Thaler R.H. (1985). Mental Accounting and Consumer Choices, Marketing Science, 4 (3), 199-214
Urbany, J. E, Bearden W. O. and Weilbaker D. C. (1988). The Effect of Plausible and Exaggerated Reference Prices on Consumer Perceptions and Price Search, Journal of Consumer research,15 (1) 95-111
Urbany, J. E, Bearden W. O. and Weilbaker D. C. (1988). The Effect of Plausible and Exaggerated Reference Prices on Consumer Perceptions and Price Search, Journal of Consumer research, 15 (1) 95-111.
Van Heerde HJ, Gupta S, Wittink DR. Is 75% of the Sales Promotion Bump due to Brand Switching? No, Only 33% IS. Journal of Marketing research, 2003; 40(4), 481-491.
Walters, R.G. (1991). Assessing the Impact of Retail Price Promotions on Product Substitution, Complementary Purchase and Inter store Sales Displacement, Journal of Marketing, 55(2), 17-28.
Ward, J. C. and Hill, R. P. (1991). Designing Effective Promotional Games: Opportunities and Problems, Journal of Advertising, 20 (3), 69-81.
Winer, Russell S. (1986). A Reference Price Model of Brand Choice for Frequently Purchased Products. Journal of Consumer research, 13(2), 250-256.
