Sales Promotion Effectiveness: The Impact of Culture on Demographic Level

Abstract

Sales promotion is an essential tool which leads to real increase in sales and profit. According to previous studies, sales promotions are effective at a cross cultural level when they provide benefits that go hand in hand with those of the promoted product. However, there is no literature state about the different sales promotion consumer benefits influences on its effectiveness at the demographic level (urban verses rural). To address this concern, this paper seeks to explore the congruence framework by analyzing how culture at a demographic group level impacts sales promotion. The objective is to investigate whether cultural differences at this level will have an impact at the effectiveness of sales promotion. This conceptual paper sheds light on the influence of culture in demographic group level in determining the response of consumers to sales promotions. The findings will contribute to the understanding of products and promotion types in the Vietnam retailers. It will also allow manufacturing companies to focus better on their strategies for marketing their products towards the Vietnamese consumer.

Effects of Message Variation and Communication Tools Choices on Consumer Response

“…Several findings concur monetary promotions are more effective for utilitarian products and nonmonetary ones for hedonic products (Chandon, Wansink, & Laurent, 2000;Santini, Sampaio, Perin, & Vieira, 2015). Huynh (2016) confirms the same finding and adds that urban consumers prefer nonmonetary promotions while rural people like the monetary ones. Palazn-Vial and Degado-Ballester (2005) discover non-monetary promotions have a stronger impact on long-term brand knowledge.…”

“…Sales promotion groups also have significantly higher scores than advertising and are better than multiple tools for credibility and familiarity. The higher scores of sales promotion may result from the types of products or services which is the significant factor for using sales promotion as found in earlier studies (Chandon, Wansink, & Laurent, 2000;Huynh, 2016;Santini et al, 2015). In this study, the retail business depends mostly on sales promotion.…”

“…Palazn-Vial and Degado-Ballester (2005) discover non-monetary promotions have a stronger impact on long-term brand knowledge. Most researchers agree the product type is a significant factor affecting sales promotion effectiveness (Chandon, Wansink, & Laurent, 2000;Huynh, 2016;Santini et al, 2015). For instance, premiums that are appropriate for the product category are seen as less manipulative (D'Astous & Landreville, 2003) and can result in longer effect after the promotion (Jones, 2008).…”

“…Advertising messages have an impact on the introductory products and attitude change (Lodish et al, 1995) and advertising message theme affects the ad wear-out rates (Bass, Norris, Majumdar, & Murthi, 2007;Campbell & Keller, 2003). For sales promotion, monetary and non-monetary promotions are differently effective for different types of products and consumers (Chandon, Wansink, & Laurent, 2000;Huynh, 2016;Santini et al, 2015), representing different types of messages for different products and target audiences. For public relations, the interaction of different types of messages in health concern (preventive or detective) and types of audience moods (positive and negative) has an influence on communication effectiveness (Anghelcev & Sar, 2011).…”

Sales promotion tools, customer emotions and consumer buying responses in Ghana

“…Marketing has gone beyond, the process of introducing a new product into the market, giving the product the right price, making them accessible or reachable to the target market. Attracting customers is so essential; to marketers, the cost of keeping old customers is far cheaper than gaining a new customer (Huynh, 2016). Mittal and Sethi (2011) explained that the cost and benefit analysis is critically done, it revealed that searching for a new customer is very expensive than keeping an existing customer.…”