IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v52y2020ics0969698917307567.html
   My bibliography  Save this article

Impact of sales Promotion's benefits on perceived value: Does product category moderate the results?

Author

Listed:
  • Sinha, Somesh Kumar
  • Verma, Priyanka

Abstract

The purpose behind the development of this research article is to assess the impact of sales promotions benefits on consumer perceived value and examine the moderating effect of product categories on the relation between sales promotions, their benefits, and consumer perceived value. The study used a sample of 400 consumers from India and ‘Structure Equation Modelling’ technique is applied to evaluate the research assumption. Finally, the moderating effect of the product category is evaluated by utilizing ‘Multi-Group Analysis' technique. Research findings reveal that the product category moderates the consumer's perceived value for hedonic and utilitarian benefits of sales promotion tools. It is found that utilitarian benefits of sales promotion have more impact on consumer perceived value in the context of personal care product while hedonic benefits are having more impact on consumer perceived value in the context of food products. A sales promotion plan can be made more effective when it is hedonic benefit oriented in the case of food products and utilitarian benefit oriented in the case of personal care products. The findings of this research can be useful for marketers to develop an effective sales promotion strategy considering the category wise differential impact of sales promotions benefits.

Suggested Citation

  • Sinha, Somesh Kumar & Verma, Priyanka, 2020. "Impact of sales Promotion's benefits on perceived value: Does product category moderate the results?," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:joreco:v:52:y:2020:i:c:s0969698917307567
    DOI: 10.1016/j.jretconser.2019.101887
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917307567
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2019.101887?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Somesh Kumar Sinha & Priyanka Verma, 2018. "Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation," Global Business Review, International Management Institute, vol. 19(6), pages 1663-1680, December.
    2. Das, Gopal & Mukherjee, Amaradri & Smith, Ronn J., 2018. "The Perfect Fit: The Moderating Role of Selling Cues on Hedonic and Utilitarian Product Types," Journal of Retailing, Elsevier, vol. 94(2), pages 203-216.
    3. Alexandra Luong & David Slegh, 2014. "Hedonic product discounts: When is the price right?," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(4), pages 356-364, October.
    4. Leeflang, Peter S.H. & Parreño Selva, Josefa & Van Dijk, Albert & Wittink, Dick R., 2008. "Decomposing the sales promotion bump accounting for cross-category effects," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 201-214.
    5. Gilles Laurent & Pierre Chandon & Brian Wansink, 2000. "A Benefit Congruency Framework of Sales Promotion Effectiveness," Post-Print hal-00458440, HAL.
    6. Jeng, Shih-Ping, 2017. "Increasing customer purchase intention through product return policies: The pivotal impacts of retailer brand familiarity and product categories," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 182-189.
    7. Koen Pauwels & Shuba Srinivasan & Philip Hans Franses, 2007. "When Do Price Thresholds Matter in Retail Categories?," Marketing Science, INFORMS, vol. 26(1), pages 83-100, 01-02.
    8. Bogomolova, Svetlana & Szabo, Marietta & Kennedy, Rachel, 2017. "Retailers' and manufacturers' price-promotion decisions: Intuitive or evidence-based?," Journal of Business Research, Elsevier, vol. 76(C), pages 189-200.
    9. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    10. Bandyopadhyay, Subir & Rominger, Anna & Basaviah, Savitri, 2009. "Developing a framework to improve retail category management through category captain arrangements," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 315-319.
    11. Chaudhuri, Malika & Calantone, Roger J. & Voorhees, Clay M. & Cockrell, Seth, 2018. "Disentangling the effects of promotion mix on new product sales: An examination of disaggregated drivers and the moderating effect of product class," Journal of Business Research, Elsevier, vol. 90(C), pages 286-294.
    12. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    13. Buil, Isabel & de Chernatony, Leslie & Martínez, Eva, 2013. "Examining the role of advertising and sales promotions in brand equity creation," Journal of Business Research, Elsevier, vol. 66(1), pages 115-122.
    14. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," HEC Research Papers Series 698, HEC Paris.
    15. Eisenbeiss, Maik & Wilken, Robert & Skiera, Bernd & Cornelissen, Markus, 2015. "What makes deal-of-the-day promotions really effective? The interplay of discount and time constraint with product type," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 387-397.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kumari, Rashmi & Tatavarthy, Aruna Divya & Sahay, Arvind, 2022. "Too many cooks spoil the broth? Number of promotional gifts and impact on consumer choice," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    2. Yang, Defeng & Chen, Xiaoyun & Ma, Baolong & Wei, Haiying, 2022. "When can interaction orientation create more service value? The moderating role of frontline employees' trust in managers and employee deep acting," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. Peschel, Anne O., 2021. "Scarcity signaling in sales promotion: An evolutionary perspective of food choice and weight status," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    4. Tsai, Pei-Hsuan & Tang, Jia-Wei & Chen, Chih-Jou, 2022. "Partnerships that go places: How to successfully market products from vendor partners at retail stores from the vendors’ perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    5. Jee, Teck Weng, 2021. "The perception of discount sales promotions – A utilitarian and hedonic perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    6. Li, Xi & Dahana, Wirawan Dony & Ye, Qiongwei & Peng, Luluo & Zhou, Jiaying, 2021. "How does shopping duration evolve and influence buying behavior? The role of marketing and shopping environment," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    7. Kumar, Sushant & Talwar, Shalini & Krishnan, Satish & Kaur, Puneet & Dhir, Amandeep, 2021. "Purchasing natural personal care products in the era of fake news? The moderation effect of brand trust," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    8. Woodong Kim & Boyoung Kim, 2020. "The Critical Factors Affecting the Consumer Reselling of Limited Edition Products: A Case in the Korean Fashion Sector," Sustainability, MDPI, vol. 12(19), pages 1-16, October.
    9. Wee-Kheng Tan & Ping-Hsin Liao, 2021. "What triggers usage of gift-giving apps? A comparison between users and non-users," Service Business, Springer;Pan-Pacific Business Association, vol. 15(3), pages 515-538, September.
    10. Wang, Qian & Chen, Hang, 2022. "Better or Worse? Effects of online promotion habits on customer value: An empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    11. Stephanie Schwipper & Severine Peche & Gertrud Schmitz, 2020. "Mobile Location-Based Services’ Value-in-Use in Inner Cities: Do a Customer’s Shopping Patterns, Prior User Experience, and Sales Promotions Matter?," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(4), pages 511-564, October.
    12. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    13. Yu, Annie Pei-I & Chuang, Shih-Chieh & Cheng, Yin-Hui & Wu, Yi-Chin, 2020. "The influence of sharing versus self-use on the preference for different types of promotional offers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    14. Kim, Woo Bin & Xie, Jiali & Choo, Ho Jung, 2023. "Role of perceived benefits of online shopping festival in vietnam: Differences between millennials and generation Z," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    15. Chunhui Huo & Xiaorui Wang & Muhammad Waqas Sadiq & Ming Pang, 2023. "Exploring Factors Affecting Consumer’s Impulse Buying Behavior in Live-Streaming Shopping: An Interactive Research Based Upon SOR Model," SAGE Open, , vol. 13(2), pages 21582440231, May.
    16. Lin, Chen & Bowman, Douglas, 2022. "The impact of introducing a customer loyalty program on category sales and profitability," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    17. Park, Yookyung & Yi, Youjae, 2022. "Is a gift on sale “heart-discounted†? Givers’ misprediction on the value of discounted gifts and the influence of service robots," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jee, Teck Weng, 2021. "The perception of discount sales promotions – A utilitarian and hedonic perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    2. Rizzi, Francesco & Gigliotti, Marina & Runfola, Andrea & Ferrucci, Luca, 2022. "Don't miss the boat when consumers are in-store! Exploring the use of point-of-purchase displays to promote green and non-green products," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    3. Chen, Lijun & Parcell, Joe L & Chen, Chao & James, Harvey S. Jr & Xu, Danning, 2016. "Consumer preference for supermarket food sampling in China," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236043, Agricultural and Applied Economics Association.
    4. Richard C. Hanna & Scott D. Swain & Paul D. Berger, 2016. "Optimizing time-limited price promotions," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(2), pages 77-92, July.
    5. Stephanie Schwipper & Severine Peche & Gertrud Schmitz, 2020. "Mobile Location-Based Services’ Value-in-Use in Inner Cities: Do a Customer’s Shopping Patterns, Prior User Experience, and Sales Promotions Matter?," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(4), pages 511-564, October.
    6. Guyt, Jonne, 2015. "Consumer choice models on the effect of promotions in retailing," Other publications TiSEM c310f652-d725-4764-aac7-b, Tilburg University, School of Economics and Management.
    7. Balakrishnan, Janarthanan & Foroudi, Pantea & Dwivedi, Yogesh K., 2020. "Does online retail coupons and memberships create favourable psychological disposition?," Journal of Business Research, Elsevier, vol. 116(C), pages 229-244.
    8. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    9. Tan, Pei Jie & Tanusondjaja, Arry & Corsi, Armando & Lockshin, Larry & Villani, Christopher & Bogomolova, Svetlana, 2021. "Behavioural and psychographic characteristics of supermarket catalogue users," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    10. Garrido-Morgado, Álvaro & González-Benito, Óscar & Martos-Partal, Mercedes & Campo, Katia, 2021. "Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?," Journal of Retailing, Elsevier, vol. 97(3), pages 477-491.
    11. Bombaij, Nick J.F. & Gelper, Sarah & Dekimpe, Marnik G., 2022. "Designing successful temporary loyalty programs: An exploratory study on retailer and country differences," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1275-1295.
    12. Marius Johnen & Oliver Schnittka, 2020. "Changing consumers’ minds at the point of sale: price discounts vs. in-store advertising," Marketing Letters, Springer, vol. 31(1), pages 49-71, March.
    13. Syed Muhammad Fazal-e-Hasan & Hormoz Ahmadi & Louise Kelly & Ian N. Lings, 2019. "The role of brand innovativeness and customer hope in developing online repurchase intentions," Journal of Brand Management, Palgrave Macmillan, vol. 26(2), pages 85-98, March.
    14. Somesh Kumar Sinha & Priyanka Verma, 2018. "Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation," Global Business Review, International Management Institute, vol. 19(6), pages 1663-1680, December.
    15. Chaudhuri, Malika & Calantone, Roger J. & Voorhees, Clay M. & Cockrell, Seth, 2018. "Disentangling the effects of promotion mix on new product sales: An examination of disaggregated drivers and the moderating effect of product class," Journal of Business Research, Elsevier, vol. 90(C), pages 286-294.
    16. Andreas Aigner & Robert Wilken & Sylvie Geisendorf, 2019. "The Effectiveness of Promotional Cues for Organic Products in the German Retail Market," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    17. Alam Kazmi, Syed Hasnain, 2015. "Developments in Promotion Strategies Review on Psychological Streams of Consumers," MPRA Paper 65424, University Library of Munich, Germany, revised 05 May 2015.
    18. Veronica Digiorgio, 2016. "Impact of promotional tools on reservation channels management: a descriptive model of Italian accommodation facilities," Information Technology & Tourism, Springer, vol. 16(4), pages 347-373, December.
    19. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    20. Aîda Mimouni & Ouidade Sabri-Zaaraoui & Béatrice Parguel, 2010. "Competitive Advertising Within Store Flyers: A Win-Win Strategy?," Post-Print halshs-00634439, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:52:y:2020:i:c:s0969698917307567. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.