Although price discounts are by far the most common form of sales promotions employed by firms, the increasing use of premiums as a promotional strategy may imply that they are occupying a more important place in the promotional strategy. Since price discounts are quite costly and can reduce consumers' reference prices, undermine perception of quality, and hurt brand equity, it is crucial to know what type of promotion is the most preferred and valued by consumers. As the most recent works in the field have argued that the promotional benefit level is an important determinant of promotional effectiveness, this research reports the results of two experimental studies that investigated the interaction effect between promotional benefit level and promotion type across three levels of benefit (low, moderate, high). The results obtained suggest that at high benefit levels price discounts are more effective than premiums, while the opposite occurs at low levels. However, a similar evaluation of promotional tools was found at moderate benefit levels. The findings offer guidance to managers who might benefit from knowing what is the best strategy to promote their products and services. Our work also extends prior related research because, to this date, the effectiveness of price discounts and premiums across promotional benefit levels is an under-researched issue.
PurposeThis study aims to integrate price consciousness into the promotional effectiveness framework. Specifically, it aims to analyse whether price consciousness affects the evaluation of price discounts and premiums at two different benefit levels (moderate vs high).Design/methodology/approachAn experiment was conducted with two promotional benefit level (moderate, high) × two promotion type (price discount, premium) between subjects design. A sample of 229 undergraduate students was randomly assigned to a specific product‐promotion combination.FindingsThe results obtained indicate that at moderate benefit level, price discounts and premiums are equally effective for high price conscious consumers. However, price discounts are more effective than premiums for low price conscious consumers. At high benefit level price discounts are more effective than premiums, but this effect is more apparent for high price conscious consumers.Research limitations/implicationsThe limitations of the study are those typically applied to the experimental methodology. Specifically, only two product categories and two types of sales promotions were used which limits the generalization of the results. Another potential limitation is the use of students' respondents.Practical implicationsIt is recommended that managers should know how price conscious their consumer segment is before taking any decisions regarding the promotional strategy. To be more effective, it is recommended to offer premiums instead of moderate price discounts if the target segment is high price conscious. However, such a recommendation should only be followed when the target is not low price conscious, because for this consumer segment a moderate discount is preferred.Originality/valueTo analyze the effectiveness of a promotion, most of the present research has focused on the benefit provided, and the promotional framework used. However, lacking in this research are insights into how consumer personal characteristics may affect that effectiveness. The current research is to fill this gap in knowledge about consumer responses to sales promotions incorporating price consciousness in the analysis.
Word of mouth (WOM) is an important information source for consumers. Nowadays, many consumers promote and spread the word about their preferred brands, thereby influencing others' attitudes and behaviours. Based on a social behaviour perspective and the need to belong theory, this research proposes that the individual's need to belong and the individual's level of self-disclosure increase their probability of engaging in positive WOM behaviour. The moderating role of self-brand connection in the aforementioned relationships is also analysed. In the study conducted, users of a well-known baby food brand (n = 851) were surveyed. The results revealed that the individuals' need to belong fostered the desire to talk to others about their preferred brand. A negative moderating effect of self-brand connection was also observed. As the connection with the brand is lower, the motivation to engage in positive WOM will be more related to personal characteristics, such as their need to belong and level of self-disclosure.
Purpose -This study aims to analyse what type of premium, hedonic or utilitarian, is preferred in a promotional context. Additionally, it seeks to examine the role of affective and cognitive reactions in decision processes where utilitarian and hedonic premiums are involved. Design/methodology/approach -Three experiments were conducted. A single factor within-subjects design was employed, with the nature of the premium (hedonic/utilitarian) as the treatment factor. Respondents were asked to make their choice between two promotional offers. Affective and cognitive reactions were measured. Regression analyses were conducted to test the hypothesized effects. Findings -The results show that hedonic premiums are preferable to utilitarian ones in a promotional context, other characteristics of the premium (e.g. premium attractiveness) being equal. The findings also identify that a preference for the hedonic/utilitarian premium is more likely to emerge when affective/cognitive reactions are incited, and indicate that the nature of the preferred premium determines the mediating effect of cognitive reactions.Research limitations/implications -The paper only focuses on the hedonic/utilitarian nature of the premium. However, premiums come in very different forms and several characteristics -such as a premium with a relatively low price, the reception delay of the premium, and the perceived fit between the product and the premium -may reverse the relative preference for hedonic premiums. Practical implications -The hedonic vs utilitarian nature of the premium should be considered when planning premium promotion. It appears that the use of more hedonic premiums increases the effectiveness of promotional actions alongside other variables such as premium attractiveness, the promotional benefit level or the product-premium fit. Furthermore, the type of premium offered influences the role of affective and cognitive reactions aroused during shopping. Thus, the nature of the premium may influence the reactions of consumers when participating in promotional actions. Originality/value -The research extends the factors that may explain the effectiveness of premium promotions, since few studies to date have focused on the hedonic or utilitarian nature of premiums.
Purpose The purpose of this paper is to analyze how brand love is built in the context of brand pages by proposing a model in which brand love depends on relationships ties with other brand consumers (sense of brand community) and with the brand itself (self–brand connection). Design/methodology/approach Information was collected from a sample of 559 members of the community of a well-known baby food brand on Facebook. Data were collected through an online questionnaire sent by the company. Findings Results suggest that both sense of brand community and self–brand connection foster brand love and that self–brand connection exerts a mediating role between sense of brand community and brand love. Furthermore, the effect of brand community on brand love is conditioned by a personal trait of individuals such as brand engagement in self-concept. In addition, this study identifies a new consequence of brand love not previously analyzed in the literature: brand equity. Research limitations/implications A potential shortcoming is the product category analyzed and that the length of membership was not controlled and it may be a moderator between participation and community consequences. Practical implications The key implications are the importance of nurturing relationship ties among brand users and building self–brand connections on brand pages as precursors of brand love. Originality/value The study offers empirical evidence about the mechanism through which brand love is formed on social-media platforms such as Facebook. Furthermore, the authors have demonstrated the relationship between brand love and brand equity, which had not been examined yet in the literature.
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to provide a better understanding of the virtual communities' phenomenon. Design/methodology/approach -This paper reports a case study. It explains one of the most successful online strategies developed by a global brand, Coca-Cola, in Spain. Findings -This study has shown that a web site can act as a marketing tool to develop a group of loyal consumers around the brand. The strength of the Spanish strategy relies on the creation of a virtual community, which provides functional, social, and experiential values. Originality/value -The paper analyses the evolution from off-line communities to virtual communities. A uses and gratification approach is used to explain consumer participation in virtual communities. The paper offers some useful guidelines for the creation and maintenance of a virtual community.
Purpose – This paper aims to examine the role of Facebook friends on the intention to join brand pages in this social network site (SNS). SNSs have grown in both popularity and use. They allow individuals to articulate their social networks by developing a list of other members on the site with whom they share a connection. These platforms also allow companies to create profiles to promote their brands. However, many firms have jumped into SNSs by creating a “brand page” without fully understanding how to spread it successfully. Design/methodology/approach – Two experiments were developed. In the first one, the authors manipulated how the individual comes to know about brand pages. Participants discovered a brand page through a friend with whom they have either a strong tie or a weak tie. In the second experiment (2 × 2), the authors manipulated tie strength (strong vs weak) and the type of recommendation (active vs passive). Findings – Results of the first study show that as the individual has more experience in Facebook (measured in this paper through satisfaction, past behavior of following brands and Facebook intensity), the effect of tie strength on the intention to join a brand page dilutes. The second study confirms Study 1 and shows that strong ties exert more influence than weak ties when the brand page is actively recommended by Facebook friends. Practical implications – This paper shows that the influence of strong ties is particularly important for individuals with low levels of experience in Facebook. As experience in SNSs is expected to continue growing, managers should not forget the role of weak ties as a source of information for their networked friends. Strong ties only remain more influential than weak ties when the information about the brand page is received through an invitation. Originality/value – This paper explores the interpersonal influences in Facebook, asserting that the influence of tie strength depends on the level of experience in the SNS, and on the way, information about the brand page is received.
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