A benefit congruency framework of sales promotion effectiveness
AbstractAre monetary savings the only explanation for consumer response to a sales promotion ? If not, how do the different consumer benefits of a sales promotion influence its effectiveness ? To address the first question, this research builds a framework of the multiple consumer benefits of a sales promotion. Through a series of measurement studies, we find that monetary and non-monetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression, entertainment, and exploration), and three utilitarian benefits (savings, higher product quality, and improved shopping convenience). To address the second question, this research develops a benefit congruency framework which argues that a sales promotion's effectiveness is determined by the utilitarian or hedonic nature of the benefits it delivers, and the congruence these benefits have with the promoted product. Among other results, two choice experiments show that as predicted for high-equity brands, monetary promotions are more effective for utilitarian products than for hedonic products. We then discuss the implications the multi-benefit and the benefit congruency frameworks have for understanding consumer responses to sales promotions, for the debate about the value of everyday-low-price policies, and for designing more effective sales promotions.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 698.
Length: 46 pages
Date of creation: 01 Mar 2000
Date of revision:
Sales promotions; consumer benefit; benefit congruency;
Find related papers by JEL classification:
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
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- Bagozzi, Richard P & Baumgartner, Hans & Yi, Youjae, 1992. " State versus Action Orientation and the Theory of Reasoned Action: An Application to Coupon Usage," Journal of Consumer Research, University of Chicago Press, vol. 18(4), pages 505-18, March.
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