IDEAS home Printed from https://ideas.repec.org/a/vrs/aicuec/v59y2012i2p67-82n5.html
   My bibliography  Save this article

A Benefit-Based Approach for Increasing the Effectiveness of Promotions

Author

Listed:
  • Ivanova Marusya

    (D.A. Tsenov Academy of Economics Svishtov, Bulgaria)

Abstract

The purpose of this paper is to reveal some insights for increasing the effectiveness of promotions. To achieve this purpose, first, the existence of multiple customer benefits of promotions is proved. It is empirically validated that promotions deliver three utilitarian (monetary savings, higher quality and shopping convenience) and two hedonic (variety and pleasure) benefits to the customers. Second, a structural equation model is estimated to measure the relative contribution of these benefits on the customers’ overall evaluation of promotions. The research suggests that in order to increase their effectiveness, promotions must be framed by focusing not only on their primary benefits but also on all other benefits with a significant contribution to customers’ attitudes towards promotions. Finally, a benefit-based segmentation is conducted. Four market clusters are identified (none-benefit, allbenefit, utilitarian-benefit and hedonic-benefit customer segments). Further, these clusters are profiled using demographic and psychographic variables.

Suggested Citation

  • Ivanova Marusya, 2012. "A Benefit-Based Approach for Increasing the Effectiveness of Promotions," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 67-82, December.
  • Handle: RePEc:vrs:aicuec:v:59:y:2012:i:2:p:67-82:n:5
    DOI: 10.2478/v10316-012-0032-7
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/v10316-012-0032-7
    Download Restriction: no

    File URL: https://libkey.io/10.2478/v10316-012-0032-7?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. Shimp, Terence A & Kavas, Alican, 1984. "The Theory of Reasoned Action Applied to Coupon Usage," Journal of Consumer Research, Oxford University Press, vol. 11(3), pages 795-809, December.
    2. Menon, Satya & Kahn, Barbara E, 1995. "The Impact of Context on Variety Seeking in Product Choices," Journal of Consumer Research, Oxford University Press, vol. 22(3), pages 285-295, December.
    3. Babin, Barry J & Darden, William R & Griffin, Mitch, 1994. "Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer Research, Oxford University Press, vol. 20(4), pages 644-656, March.
    4. Pauline de Pechpeyrou & Béatrice Parguel & Aîda Mimouni & Pierre Desmet, 2006. "Perceived value and trustworthiness of a multi- promotion offer," Post-Print halshs-00146652, HAL.
    5. Barbara E. Kahn & Jagmohan S. Raju, 1991. "Effects of Price Promotions on Variety-Seeking and Reinforcement Behavior," Marketing Science, INFORMS, vol. 10(4), pages 316-337.
    6. Gilles Laurent & Pierre Chandon & Brian Wansink, 2000. "A Benefit Congruency Framework of Sales Promotion Effectiveness," Post-Print hal-00458440, HAL.
    7. Holbrook, Morris B & Hirschman, Elizabeth C, 1982. "The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun," Journal of Consumer Research, Oxford University Press, vol. 9(2), pages 132-140, September.
    8. Strahilevitz, Michal & Myers, John G, 1998. "Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell," Journal of Consumer Research, Oxford University Press, vol. 24(4), pages 434-446, March.
    9. repec:dau:papers:123456789/1069 is not listed on IDEAS
    10. Ross Williams, 2013. "Introduction," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(4), pages 460-461, December.
    11. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," HEC Research Papers Series 698, HEC Paris.
    12. Itamar Simonson & Ziv Carmon & Suzanne O'Curry, 1994. "Experimental Evidence on the Negative Effect of Product Features and Sales Promotions on Brand Choice," Marketing Science, INFORMS, vol. 13(1), pages 23-40.
    13. Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. "Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, Oxford University Press, vol. 17(1), pages 74-81, June.
    14. Chakravarthi Narasimhan, 1984. "A Price Discrimination Theory of Coupons," Marketing Science, INFORMS, vol. 3(2), pages 128-147.
    15. 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, Oxford University Press, vol. 18(4), pages 505-518, March.
    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. 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.

    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. Jamal, Ahmad & Peattie, Sue & Peattie, Ken, 2012. "Ethnic minority consumers' responses to sales promotions in the packaged food market," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 98-108.
    2. 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.
    3. Heitz-Spahn, Sandrine, 2013. "Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 570-578.
    4. Barat, Somjit & Amos, Clinton & Paswan, Audhesh & Holmes, Gary, 2013. "An exploratory investigation into how socioeconomic attributes influence coupons redeeming intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 240-247.
    5. Dickinger, Astrid & Kleijnen, Mirella, 2008. "Coupons going wireless: Determinants of consumer intentions to redeem mobile coupons," Journal of Interactive Marketing, Elsevier, vol. 22(3), pages 23-39.
    6. Souiden, Nizar & Chaouali, Walid & Baccouche, Mona, 2019. "Consumers’ attitude and adoption of location-based coupons: The case of the retail fast food sector," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 116-132.
    7. Hye Jung Jung & HaeJung Kim & Kyung Wha Oh, 2016. "Green Leather for Ethical Consumers in China and Korea: Facilitating Ethical Consumption with Value–Belief–Attitude Logic," Journal of Business Ethics, Springer, vol. 135(3), pages 483-502, May.
    8. Valentini, Sara & Neslin, Scott A. & Montaguti, Elisa, 2020. "Identifying omnichannel deal prone segments, their antecedents, and their consequences," Journal of Retailing, Elsevier, vol. 96(3), pages 310-327.
    9. Bandyopadhyay, Nirmalya & Sivakumaran, Bharadhwaj & Patro, Sanjay & Kumar, Ravi Shekhar, 2021. "Immediate or delayed! Whether various types of consumer sales promotions drive impulse buying?: An empirical investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    10. Pierre Volle & Aïda Mimouni, 2003. "Bénéfices perçus de la fidélisation et qualité relationnelle : une application exploratoire au secteur du transport aérien," Post-Print halshs-00164836, HAL.
    11. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    12. Huré, Elodie & Picot-Coupey, Karine & Ackermann, Claire-Lise, 2017. "Understanding omni-channel shopping value: A mixed-method study," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 314-330.
    13. Surajit Ghosh Dastidar & Prasenjit Chakravarty, 2018. "Effect of Encumbrances on Response to Sales Promotions," FIIB Business Review, , vol. 7(2), pages 135-145, June.
    14. Sooyeon Lee-Wingate & Kim Corfman, 2010. "A Little Something for Me and Maybe for You, Too: Promotions that Relieve Guilt," Marketing Letters, Springer, vol. 21(4), pages 385-395, December.
    15. 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).
    16. Atulkar, Sunil & Kesari, Bikrant, 2017. "Satisfaction, loyalty and repatronage intentions: Role of hedonic shopping values," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 23-34.
    17. Khare, Arpita, 2011. "Mall shopping behaviour of Indian small town consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 110-118.
    18. Harper Roehm & Michelle Roehm, 2007. "The relationship between FSI advertising style and coupon redemption," Marketing Letters, Springer, vol. 18(4), pages 237-247, December.
    19. Dang Jha Priya, 2004. "A Review of Theoretical Perspectives Applied to Sales Promotion and a New Perspective based on Mental Accounting Theory," IIMA Working Papers WP2004-03-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    20. Zavadskas, Edmundas Kazimieras & Kaklauskas, Arturas & Bausys, Romualdas & Naumcik, Andrej & Ubarte, Ieva, 2021. "Integrated hedonic-utilitarian valuation of the built environment by neutrosophic INVAR method," Land Use Policy, Elsevier, vol. 101(C).

    More about this item

    Statistics

    Access and download statistics

    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:vrs:aicuec:v:59:y:2012:i:2:p:67-82:n:5. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.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.