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The Review of How Sales Promotion Change the Consumer's Perception Global Journal of Management and Business Research: E Marketing Volume 15 Issue 5 Version 1.0 Year 2015 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 The Review of how Sales Promotion Change the Consumer’s Perception and Their Purchasing Behavior of a Product By Wong Ai Jean & Rashad Yazdanifard Help College Of Arts And Technology, Malaysia Abstract- As the world market becomes increasingly competitive, a variety of sales promotion techniques need to be implemented by marketers in order to stand out among their competitors. Overtime, as consumers become increasingly sensitive towards the sales promotion strategies, marketers need to identify the most suitable sales promotion strategy to be implemented in their products (i.e.: monetary or non-monetary sales promotion strategies) in order to increase the number of consumers; purchasing behaviors and avoid any potential negative perception. This article has revealed that besides serving as a short-term profit marketing strategy, sales promotion has the potential in helping the marketers to achieve long-term profits through influencing the consumer’s self-perception and self-satisfaction and in the development of loyal customers. Keywords: sales, promotion, consumers, perception, purchasing, behavior, implication. GJMBR - E Classification : JEL Code : D12 TheReviewofHowSalesPromotionChangetheConsumersPerceptionandTheirPurchasingBehaviorofaProduct Strictly as per the compliance and regulations of: © 2015. Wong Ai Jean & Rashad Yazdanifard. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non- commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. The Review of how Sal es Promotion Change the Consumer’s Perception and Their Purchasing Behavior of a Product Wong Ai Jean α & Rashad Yazdanifard σ Abstract- As the world market becomes increasingly purchasing behavior of the potential consumers (Alvarez competitive, a variety of sales promotion techniques need to & Casielles, 2005; Chandon, Wansin, & Laurent, 2000; be implemented by marketers in order to stand out among Hendel & Nevo, 2006; Kalaiselvan, 2013; Lichtenstein, 2015 their competitors. Overtime, as consumers become Ridgway, & Netemeyer, 1993). Moreover, due to the increasingly sensitive towards the sales promotion strategies, ear consistent exposure to variety of sales promotion and Y marketers need to identify the most suitable sales promotion individual differences, each unique consumer has strategy to be implemented in their products (i.e.: monetary or 33 non-monetary sales promotion strategies) in order to increase developed a different perception towards sales the number of consumers; purchasing behaviors and avoid promotion. Thus, this article has continuous any potential negative perception. This article has revealed discussionon the consumer’s perception on sales that besides serving as a short-term profit marketing strategy, promotion, and how the sales promotion can positively sales promotion has the potential in helping the marketers to and negatively affected the consumer’s cognitive achieve long-term profits through influencing the consumer’s thinking and purchasing behavior. self-perception and self-satisfaction and in the development of loyal customers. In other words, sales promotion has II. Methodology benefited both the marketers and the consumers at the same time. This study has reviewed primary and secondary Keywords: sales, promotion, consumers, perception, data to study the consumer behaviors on sales purchasing, behavior, implication. promotion strategy. International journals reviewed in this paper are retrieved from several well-recognized I. Introduction databases such as Ebscohost, Emerald, Jstor and ) E Proquest. This literature review has discussed the ( ith the advancement of technology, a variety of effects of monetary and non-monetary sales promotion new products are developed and innovated into on consumers’ perception and purchasing behaviors. the already present market to improve the W Also, the implication of sales promotion on consumers’ quality life of society. One of the most effective and purchasing behaviors and personal mental satisfaction easiest ways to be outstanding among the competitive are further discussed in the paper. market world is to apply sales promotion. Promotion is classified as one of the backbones of marketing mix, III. Sales Promotion Versus General which is used to increase the consumers’ purchasing Promotion behavior. Research proposed that among the competitive businesses, promotion is an essential factor Promotion is a vital tool that helps the marketer to a new product and present product to continue to achievement their sales target and increase the surviving in the market shelf (Abdalnaser Ahmad Salem company’s profit (Alvarez & Casielles, 2005). Gherasim Jaradat, Jaradat, & Fatima Lahcen Ait Yassine, 2011). (2012) has argued that sales promotion and general Based on a marketer’s perspective, sales promotion has promotion are different marketing strategies that play acted as a vital tool to increase the sales profit within a different roles in market place. For instance, general short period of time. Meanwhile, as consumers, we are promotion is described as the activity, which is aimed to surrounded by promotion in our daily life without being communicate and improve the relationship between the noticed. Therefore, the implication and the effectiveness product’s brand, services and consumers (Blattberg & of sales promotion have received high attention and Neslin, 1990). Conversely, Kotler (1988) has defined Global Journal of Management and Business Research Volume XV Issue V Version I concern (Ndubisi & Chiew, 2005).This article has sales promotion as “a diverse collection of incentive reviewed the types of sales promotion, which have tool, mostly short-term, designed to stimulate quicker played an important role in influencing the and greater purchase of particular products/services by consumers”. In other words, sales promotion has emphasized on the short term, stronger stimuli and the Author α σ : Center of Southern New Hampshire Program Help College of Arts & Technology. Kuala Lumpur, Malaysia. motivational strategy to increase the purchasing e-mails: [email protected], [email protected] behavior and to also encourage the consumer to switch ©2015 Global Journals Inc. (US) The Review of how Sales Promotion Change the Consumer’s Perception and Their Purchasing Behavior of a Product from competing brands (Quelch, 1989; Shimp, 2003; b) Non-monetary Sales Promotion van Heerde, Leeflang, & Wittink, 2004; Zeithaml, 1988). Apart from the monetary sales promotion, Montaner, Chernatony and Buil (2011) have indicated IV. Types of Sales Promotion that gift promotion is more preferable by the consumers than price discount. For example, consumers prefer to Jarvenpaa and Todd (1996) have indicated that receive gifts that have high equity as the products they the types of sales promotion have played an important have purchased than receivinga price discount. Added role in influencing the purchasing behavior of potential to that, past research has suggested that price consumers. Different types of sales promotion have reduction is more likely to negatively influence the different targeted potential consumers for different kinds consumers’ purchasing intention (Kalaiselvan, 2013) as of products. Four leading sales promotion techniques a monetary promotion is often perceived negatively by that have a significant positive impact on consumers’ the consumers (Lichtenstein et al., 1993). For instance, perception and purchasing behavior included coupons, consumers likely perceive the products have low quality 2015 samples, and retail shopper cards (i.e.: member card, when it is offered at a low price. In addition, some of the VIP card) (Schultz & Block, 2014). Other than the market professionals have claimed that a monetary ear different types of sales promotion techniques used by Y promotion is a myopic marketing strategy (Buzzell, the marketers, Quelch (1989) has classified sales Quelch, & Salmon, 1990) in which the retailers have only 34 promotion into two major categories, monetary and non- emphasized on the quantity of the products sold instead monetary promotion. Moreover, Chandon and of improving their marketing strategy. colleagues (2000) have indicated that monetary and non-monetary sales promotion are both effective in V. Consumers’ Perception on Sales influencing the consumers’ cognitive structures which increase the purchasing behaviors. Promotion a) Monetary Sales Promotion As mentioned earlier, due to the competitive Without a single hint of hesitation, as a market world, retailers have implemented a variety of consumer, most of us favor sales promotion, especially sales promotion techniques and advertisements in order immediate price reduction (Huff & Alden, 1988). As a to stand out among their competitors. However, over result, past research has proposed that monetary sales time, consumers have started to become sensitive and promotion is widely used in different types of goods and skeptical towards the stimuli from sales promotion ) able to produce a significant increase in the company’s strategy (de Pechpeyrou & Odou, 2012). For instance, E
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