International Journal of Retail & Distribution Management Essay Example for Free

International Journal of Retail Distribution Management Essay creative activity Sales promotion is the offer of an incentive to induce a desired sales pull up stakes (Gilbert, 1999). For our purposes promotional techniques, within UK supermarkets, have been taken to be value increasing promotions (i. e. coupons and outlay deals) and value adding (i. e. premiums, prizes/contests/sweepstakes, samples, point of barter for display, demonstration and loyalty cards). Sales promotion consists of a wide variety of short-term tactical promotional tools aimed at generating a desired response from customers.Although in that respect is a shift in marketing communications, away from advertising towards sales promotions, there is no consensus among researchers that sales promotions lead to repeat purchase. It is agreed, however, that scathe promotions can result in a short-term increase in sales (Smith and Sinha, 2000 Banks and Moorthy, 1999 Kopalle and Mela, 1999 Diamond, 1992 Gupta a nd Cooper, 1992 Bawa and Shoemaker, 1987). It is also important to none that studies of price promotions also show that customers who take advantage of a price promotion often return to their favourite(a) brands (Ehrenberg et al. 1994 Brandweek, 1994). There is a large body of literature, which has examined consumer response to sales promotions, especially coupons (Krishna and Zhang, 1999 Huff and Alden, 1998 Leone and Srinivasan, 1996 Bawa and Shoemaker, 1987, 1989 Gupta, 1988, 1993 Blattberg and Neslin, 1990). Coupons and discounts are the most(prenominal) widely used promotional tools. However, relatively little research has focussed on value adding promotions. In coupon promotions retailers maintain the original price of the product and it is only coupon holders who are entitled to a discount.As buyers are not subject to a reduction in sales price there is no need for them to adjust their internal reference prices downwards, as is the case with discount promotions. Therefore , coupon promotions should be more attractive than discount promotions in improving the transaction value of the product. However, consumers must keep bilk of the coupons and produce them at the place of purchase. If consumers are used to utilising coupons then they are likely to have a more positive attitude towards them (Huff and Alden, 1998). Also, if a The authors D. C.Gilbert is Professor of Marketing and N. Jackaria is a Researcher, both at Surrey European Management School, University of Surrey, Guildford, UK. Keywords Sales promotion, Retail trade, Food industry, Marketing Abstract UK supermarkets need to be adequate to(p) to assess the current efficacy of the budget they allocate to promotional activities aimed at boosting sales. Therefore, the main objective of this obligate is to investigate consumer response to the four different promotional deals most commonly used in UK supermarkets coupons, price discounts, samples and buy-one-get-one-free.Multi discriminant analys is was used on a study of 160 respondents to analyse whether there was an association between the four consumer promotional approaches and respondents reported buying behaviour. The findings indicate that only price discount promotions proved to be statistically significant on consumers reported buying behaviour. Purchase acceleration and product trial are found to be the two most influential variables related to a discount. For buy-one-get-one-free, while the result is not significant, the two variables, brand switching and purchase acceleration are statistically significant.