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A benefit congruency framework of sales promotion effectiveness

Author

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  • LAURENT, Gilles
  • CHANDON, Pierre
  • WANSINK, Brian

Abstract

Are 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.

Suggested Citation

  • LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," Les Cahiers de Recherche 698, HEC Paris.
  • Handle: RePEc:ebg:heccah:0698
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    File URL: http://www.hec.fr/var/fre/storage/original/application/9367b978d09bb78a55689e3b23b85f25.pdf
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    References listed on IDEAS

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    1. 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.
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    More about this item

    Keywords

    Sales promotions; consumer benefit; benefit congruency;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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