IDEAS home Printed from https://ideas.repec.org/a/jfr/rwe111/v10y2019i3p320-328.html
   My bibliography  Save this article

Intensity of Sales Turnover and Promotional Expenditure and the Likelihood of New Product Success: Configurational Matrix of Fast Moving Consumer Goods (FMCG)

Author

Listed:
  • R. Agus Trihatmoko

Abstract

The FMCG marketing phenomenon plays all elements of the marketing mix (4P's), so that each element is thought to have a high degree of complexity. The first objective of this research was to uncover the responses of buyers in the business market to the offering of a new product related to the marketing environment situation - P: promotion and other environments; and next, detecting product performance and its parameters as an evaluation tool for the success of new products. Qualitative research methodology was applied, and was designed using a grounded theory strategy and an interpretative approach, constructivism and pragmatism. Data was collected from the phenomenon of FMCG competition in traditional markets in Indonesia. The results of the research identified buyers' responses reveal that the marketing - promotion environment was directly taken into consideration by purchasing decisions; marketing environment - promotion is valued by the buyer in relation to the marketing environment - price, and the expected impact on the competitive environment - activity and results of promotion. The concepts from the results of this study have implications for the practice of corporate strategies regarding new product launches, marketing and financial budgeting, brand strategy, and marketing market performance. All these matters show that the depth of the purchasing behavior perspective, as well as the performance and success of a product based on promotional strategies is the originality of this paper.

Suggested Citation

  • R. Agus Trihatmoko, 2019. "Intensity of Sales Turnover and Promotional Expenditure and the Likelihood of New Product Success: Configurational Matrix of Fast Moving Consumer Goods (FMCG)," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 320-328, December.
    • Handle: RePEc:jfr:rwe111:v:10:y:2019:i:3:p:320-328
    DOI: 10.5430/rwe.v10n3p320
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/16852/10458
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/16852
    Download Restriction: no
    File URL: https://libkey.io/10.5430/rwe.v10n3p320?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
    ---><---

    References listed on IDEAS

    as
    1. Tiaojun Xiao & Gang Yu & Zhaohan Sheng & Yusen Xia, 2005. "Coordination of a Supply Chain with One-Manufacturer and Two-Retailers Under Demand Promotion and Disruption Management Decisions," Annals of Operations Research, Springer, vol. 135(1), pages 87-109, March.
    2. Jin, Yannan & Wang, Sujuan & Hu, Qiying, 2015. "Contract type and decision right of sales promotion in supply chain management with a capital constrained retailer," European Journal of Operational Research, Elsevier, vol. 240(2), pages 415-424.
    3. R. Agus Trihatmoko & Dian Indri Purnamasari, 2019. "New Product Pricing Strategy and Product Performance Assessment in Fast Moving Consumer Goods," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 417-423.
    4. 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.
    5. Hawa JALLOW & Omkar DASTANE, 2016. "Effect Of Sales Promotion Schemes On Purchase Quantity: A Study Of Malaysian Consumers," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 299-320, November.
    6. 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.
    7. Donald Jackson Jr & Richard Burdick & Janet Keith, "undated". "Industrial Buying Center Influence: A Situational Approach," Working Papers 2144711, Department of Economics, W. P. Carey School of Business, Arizona State University.
    8. R. Agus Trihatmoko & Saud Napitupulu & Dian Indri Purnamasari & Hudi Kurniawanto, 2018. "An Assessment of The Demand for New Products of Fast Moving Consumer Goods (FMCG)," Business Management and Strategy, Macrothink Institute, vol. 9(2), pages 18-39, December.
    Full references (including those not matched with items on IDEAS)

    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. Lang, Le Dang & Lim, Weng Marc & Guzmán, Francisco, 2022. "How does promotion mix affect brand equity? Insights from a mixed-methods study of low involvement products," Journal of Business Research, Elsevier, vol. 141(C), pages 175-190.
    2. Hu, Jing & Hu, Qiying & Xia, Yusen, 2019. "Who should invest in cost reduction in supply chains?," International Journal of Production Economics, Elsevier, vol. 207(C), pages 1-18.
    3. 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).
    4. Chernonog, Tatyana & Avinadav, Tal & Ben-Zvi, Tal, 2015. "Pricing and sales-effort investment under bi-criteria in a supply chain of virtual products involving risk," European Journal of Operational Research, Elsevier, vol. 246(2), pages 471-475.
    5. Torres, Pedro & Augusto, Mário & Godinho, Pedro, 2017. "Predicting high consumer-brand identification and high repurchase: Necessary and sufficient conditions," Journal of Business Research, Elsevier, vol. 79(C), pages 52-65.
    6. R. Agus Trihatmoko & Dian Indri Purnamasari, 2019. "New Product Pricing Strategy and Product Performance Assessment in Fast Moving Consumer Goods," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 417-423.
    7. Xin Yun & Hao Liu & Yi Li & Kin Keung Lai, 2023. "Contract design under asymmetric demand information for sustainable supply chain practices," Annals of Operations Research, Springer, vol. 324(1), pages 1429-1459, May.
    8. Sandra Maria Correia Loureiro & Rui Lopes & Hans Ruediger Kaufmann, 2014. "How brand personality, brand identification and service quality influence service brand equity," Cogent Business & Management, Taylor & Francis Journals, vol. 1(1), pages 1-1, October.
    9. Shahrina Md Nordin & Nor Izzah Mokhtar & Unggul Priyadi & Tarjo Tarjo & Wan Fatimah Wan Ahmad & Ammar Redza Ahmad Rizal, 2023. "Communicating Sustainable Brand Equity in a High Carbon Footprint and High-Risk Sector: Comparing Malaysia and Indonesia Oil and Gas Industry," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    10. Yan, Yingchen & Zhao, Ruiqing & Xing, Tiantian, 2019. "Strategic introduction of the marketplace channel under dual upstream disadvantages in sales efficiency and demand information," European Journal of Operational Research, Elsevier, vol. 273(3), pages 968-982.
    11. Idongesit Oto Eshiett & Oto Eyamba Eshiett, 2023. "Social Media Food Ads Hype and Adolescent Obesity Upsurge in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 1854-1868, July.
    12. Chen, Xu & Li, Shanshan & Wang, Xiaojun, 2020. "Evaluating the effects of quality regulations on the pharmaceutical supply chain," International Journal of Production Economics, Elsevier, vol. 230(C).
    13. Sarker, Moniruzzaman & Mohd-Any, Amrul Asraf & Kamarulzaman, Yusniza, 2021. "Validating a consumer-based service brand equity (CBSBE) model in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    14. Dirk Crass & Dirk Czarnitzki & Andrew A. Toole, 2019. "The Dynamic Relationship Between Investments in Brand Equity and Firm Profitability: Evidence Using Trademark Registrations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 26(1), pages 157-176, January.
    15. Amin Ansary & Nik M. Hazrul Nik Hashim, 2018. "Brand image and equity: the mediating role of brand equity drivers and moderating effects of product type and word of mouth," Review of Managerial Science, Springer, vol. 12(4), pages 969-1002, October.
    16. Yeung, Wing-Kwan & Choi, Tsan-Ming & Cheng, T.C.E., 2011. "Supply chain scheduling and coordination with dual delivery modes and inventory storage cost," International Journal of Production Economics, Elsevier, vol. 132(2), pages 223-229, August.
    17. Han, Xiaohua & Wu, Haiyan & Yang, Qianxia & Shang, Jennifer, 2016. "Reverse channel selection under remanufacturing risks: Balancing profitability and robustness," International Journal of Production Economics, Elsevier, vol. 182(C), pages 63-72.
    18. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    19. Junhu Ruan & Felix T. S. Chan & Xiaofeng Zhao, 2018. "Re-Planning the Intermodal Transportation of Emergency Medical Supplies with Updated Transfer Centers," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    20. Chen, Kebing & Xiao, Tiaojun, 2009. "Demand disruption and coordination of the supply chain with a dominant retailer," European Journal of Operational Research, Elsevier, vol. 197(1), pages 225-234, August.

    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:jfr:rwe111:v:10:y:2019:i:3:p:320-328. 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: Gina Perry (email available below). General contact details of provider: http://rwe.sciedupress.com .

    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.