Page 1 of 12

Archives of Business Review – Vol. 9, No.1

Publication Date: January 25, 2021

DOI: 10.14738/abr.91.9558. Al-Riyami, M. (2021). Effect of Sales Promotion on Consumers Towards Fast-Moving Consumer Goods in Al-Dakhliyah Governorate.

Archives of Business Research, 9(1). 24-35.

Effect of Sales Promotion on Consumers Towards Fast-Moving

Consumer Goods in Al-Dakhliyah Governorate.

Mousa Al Riyami

University of Nizwa

ABSTRACT

The importance of consumer sales promotion in the marketing mix of

the fast moving consumer goods (FMCG) category throughout the world

has increased. Companies spend considerable time in planning such

activities. However, there are few studies conducted in the Middle East

to find out effectiveness of promotions. This aims to investigate

consumer’s perceptions regarding sales promotion. Results indicate

that there is a moderate correlation between consumers’ expectations

and sales promotion in Al-Dakhliyah Governorate.

Key Words: Sales promotion, sales.

INTRODUCTION

Sales promotion has been well-defined as ‘a direct inducement that offers an extra value or

incentive for the product to the sales force, distributors, or the final consumer with the primary

objective of creating an immediate sale (Haugh, 1983). Belch and Belch (2003) have defined sales

promotion have a common viewpoint viz., they all involve a temporary and tangible modification

of supply, for the ultimate goal of direct impact on the behavior of the consumer, retailer or sales

force. In the marketing mix, sales promotion has one of the strongest impacts on short-term

consumption behavior (Laroche Et al . 2003).

LITERATURE REVIEW

Karthikeyan and (Panchanathan, 2013) study on Impact of Sales Promotion Techniques on

Consumers towards FMCG depicts Sales promotions are generally looked at as tools that undermine

the brand; (Panchanathan, 2013)

A study by Binod (Shrestha, 2012) on Consumers’ Responses to Sales Promotions of Fast Moving

Consumer Goods in Nepal examined consumers’ perceptions of products they purchased under

sales promotion offers, and their effects on repurchase intentions of the same products after the

end of the offers. The research began with an exploratory study of marketers’ observations of the

effectiveness of consumer sales promotion programs, and consumers’ opinions regarding the

products. The findings of this exploratory research were used to develop hypotheses and survey

instrument. A consumer survey was carried out to empirically test the effectiveness of sales

promotion offers on three perceptual dimensions viz. quality, price and fun; and the impact of these

perceptions on repurchase intentions. The research revealed that consumers perceived that they

receive quality and price benefits but not hedonic benefits from the products purchased under

product and prize based sales promotion offers. The sales promotion offers neither encouraged

repurchase intentions nor substantial short term brand switching. Offering a gift attached to the

Page 2 of 12

25

Archives of Business Research (ABR) Vol 9, Issue 1, January-2021

product appeared to reward loyal consumers only. These findings have implications for marketers’

decisions to offer consumer sales promotions.

Blattberg, Peacock and Sen (1976) define a purchase strategy as a general buying pattern which

"incorporates several dimensions of buying behavior such as brand loyalty, private brand

proneness and deal proneness.".

Sales promotion as a pivotal component of marketing mix has been heavily used as a major

incentive tool to pull consumers to stores and increase short-run sales volumes. Since 1980s,

researchers have constantly proposed a variety of concepts to illustrate how sales promotion might

affect consumer purchase behavior via overcoming "consumer entropy" (Beem & Shaffer 1981),

inviting consumers to engage in transactions (Kotler 1988), heightening the psychological value

associated with the transactions (Thaler 1983), or by providing consumers with a script of

purchase behavior (Gardner & Strang 1984). No matter what effects of sales promotion would be,

all the convictions alleged by the preceding studies indicate that sales promotion may activate or

facilitate certain consumer psychological mechanism based on the notion that sales promotion

"affects consumer by acting on basic mental processes common to all decisions" (Schindler &

Rothaus 1985). Although sales promotion has become a ubiquitous element of consumer

marketing, large portions of International Ineffective promotional activities indicate a great need

of refining and redirecting the focus of the impact sources. Numerous studies have focused on

consumer attitudinal and behavioral responses to price promotion and its utilitarian benefits (see

Dobson et al. 1978, Gupta 1988). Blattberg, Eppen, and Liebermann (1981), Gupta (1988), Neslin,

Henderson, and Quelch (1985), Shoemaker (1979), Ward and Davis (1978), and Wilson, Newman,

and Hastak (1979) find evidence that promotions are associated with purchase acceleration in

terms of an increase in quantity purchased and, to a lesser extent, decreased inter purchase timing.

Researchers studying the brand choice decision-for example, Guadagni and Little (1983) and Gupta

(1988)-have found promotions to be associated with brand switching.

Montgomery (1971), Schneider and Currim (1990), and Webster (1965) found that promotion- prone households were associated with lower levels of brand loyalty. Blattberg, Peacock, and Sen

(1976, 1978) describe 16 purchasing strategy segments based on three purchase dimensions:

brand loyalty (single brand, single brand shifting, many brands), type of brand preferred (national,

both national and private label), and price sensitivity (purchase at regular price, purchase at deal

price). There are other variables that may be used to describe purchase strategies, examples are

whether the household purchases a major or minor (share) national brand, store brand, or generic,

or whether it is store-loyal or not.

McAlister (1983) and Neslin and Shoemaker (1983) use certain segments derived from those of

Blattberg, Peacock, and Sen but add a purchase acceleration variable to study the profitability of

product promotions. Throughout the world, consumer sales promotions are an integral part of the

marketing mix for many consumer products. Marketing managers use price-oriented promotions

such as coupons, rebates, and price discounts to increase sales and market share, entice trial, and

encourage brand switching. Non-price promotions such as sweepstakes, frequent user clubs, and

premiums add excitement and value to brands and may encourage brand loyalty (e.g., Aaker 1991;

Shea, 1996). In addition, consumers like promotions. They provide utilitarian benefits such as

Page 3 of 12

Al-Riyami, M. (2021). Effect of Sales Promotion on Consumers Towards Fast-Moving Consumer Goods in Al-Dakhliyah Governorate. Archives of

Business Research, 9(1). 24-35.

URL: http://dx.doi.org/10.14738/abr.91.9558 26

monetary savings, added value, increased quality, and convenience, as well as hedonic benefits

such as entertainment, exploration, and self-expression (Chandon, Laurent, and Wansink, 1997).

Though the currently available literature on influencing factors seemingly appears to be adequate,

still a lot of research needs to be done in specific geographic markets (Jha, Mithileswar, 2003;

Bijoor, Harish 2004) as the middle east consumer behavior varies in various product categories

and geographic markets (Sinha, 2008).Respected as an expert , Rajan, R.V., opined that a lot of study

still needs to be conducted as understanding of consumers, even after two decades, remains partial

and superficial.

Linking of Objectives Of The Study With Hypotheses