Effect of Sales Promotions on Consumer Preferences - The Moderating Role of Price Perceptions and Deal Proneness (A Study of FMCG Products)

Rao, Venu Gopal
March 2009
Vilakshan: The XIMB Journal of Management;Mar2009, Vol. 6 Issue 1, p1
Academic Journal
Manufacturers of FMCG products rely on sales promotions in order to attract customers and motivate them to buy their products. In doing so many marketers may be missing out on crucial consumer related dimensions such as Value consciousness (VC), Deal proneness (DP) and Price consciousness (PC). Past studies in the area indicate that these dimensions impact the manner in which consumers respond to sales promotion offers. Taking select FMCG products (packaged atta, tooth paste and detergents), two promotion types (monetary and non monetary) and two store types (Supermarket and Kirana store) the study makes an attempt to analyze whether the three dimensions of Value Consciousness, Deal Proneness and Price Consciousness are related and if so what is their impact on store preferences, brand preferences and buying intentions. Results of the study indicate that the three dimensions have an impact on Buying intentions, Brand and Store preferences. Differences were observed among consumers on Value consciousness and Deal proneness but not on Price consciousness. Demographic variables and their association with the dimensions have been mixed and not very significant implying that the dimensions under study have a universality of application. Consumers differed on the three dimensions when compared by their preferences for Monetary and Non Monetary promotions. It is suggested that similar studies be carried out in different product categories to test the applicability of the dimensions under question.


Related Articles

  • Effects of prior brand usage and promotion on consumer promotional response Bridges, Eileen; Briesch, Richard A.; Yim, Chi Kin (Bennett) // Journal of Retailing;2006, Vol. 82 Issue 4, p295 

    We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on...

  • The effect of sales promotion on post-promotion brand preference: A meta-analysis. DelVecchio, Devon; Henard, David H.; Freling, Traci H. // Journal of Retailing;Sep2006, Vol. 82 Issue 3, p203 

    Abstract: The benefit of sales promotions is that they induce choice. However, this benefit may be offset by undermining preference for the brand when it is no longer promoted. Despite the fact that sales promotions have long been employed in marketing practice and researched academically, a...

  • Multiple - choice marketing ticks all the right boxes. Mortimer, Ruth // Marketing Week;2/10/2011, Vol. 34 Issue 6, p10 

    The article focuses on the importance of employing a multiple-choice storytelling technique as new move of personalized marketing in Great Britain. It mentions that Samsung Electronics Co. Ltd. has adopted the choose-your-own adventure marketing strategy to promote its Galaxy Player 50 for...

  • Ed Pilkington: Put amazing brand experiences at the centre of your strategy for a lasting impression. Pilkington, Ed // Marketing Week (Online Edition);9/10/2015, p1 

    In this article, the author discusses the importance of brand experiences for making the marketing strategy for the longtime impression on customers. He mentions that the target audience enables to experience what the brand stands for and the importance of the consumer choice and preferences. He...

  • Promotion planning: make them relevant to shopper needs. Sables, David // Grocer;8/22/2015, p51 

    The article encourages grocery stores to make their promotion planning relevant to shopper needs. It points out the opportunity to bring growth strategy into product category plans and refers to multi-phase product deals and supply chain costs as causes of increased waste for shoppers. Emphasis...

  • Paradox of choice and consumer nonpurchase behavior. Kinjo, Keita; Ebina, Takeshi // AI & Society;May2015, Vol. 30 Issue 2, p291 

    This paper theoretically analyzes the so-called paradox of choice, introduced by Schwartz (The paradox of choice: why more is less, Harper Perennial, New York, ), which posits that having too many choices can make us unhappy. Although one's possibilities broaden as the number of choices...

  • Make us an offer...or we'll refuse.  // Cabinet Maker;5/28/2004, Issue 5390, p12 

    Highlights results of a survey on consumer attitudes concerning the purchase of new furnitures in Great Britain, current as of May 28, 2004. Postponement of purchase until a sale or special promotion; Direct purchase from manufacturer; Buy from store that always has low prices; Ask for a...

  • Why retailers call the shots. Ritson, Mark // Marketing (00253650);2/18/2009, p24 

    The article focuses on the marketing advantages of retailers in Great Britain. According to the author, retailers have competitive advantage in the market because they can gain access to consumer data that are useful for formulating strategies. In addition, he believes that direct access to...

  • The Effectiveness of Retail Price Reductions: A Comparison for Alternative Expressions of Price. ANDERSON, EVAN E. // Journal of Marketing Research (JMR);Aug1974, Vol. 11 Issue 3, p327 

    This article investigates the effectiveness of retail price reductions of grocery products. The author discusses how the awareness of unit-pricing information by households plays an important role in this relationship. The author also examines the concept of price level and price expression in...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics