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Point of Sales Promotions and Buying Stimulation in Retail Stores

Author

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  • Rajagopal

    () (Tecnológico de Monterrey, Campus Ciudad de México)

Abstract

This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and satisfaction among customer in building store loyalty have been discussed in the paper. This study also builds arguments around convergence of attractiveness of point of sales promotions and effectiveness of customer services as a tool for gaining competitive advantage in the retail business environment. The results indicate that point of sales promotion programs have become the principal tool of retailing in Mexico to acquire new customers and retain the loyal customers. It is also found during the study that loyal customers are attracted to the store brands during the promotional offers while new shoppers are price sensitive and are attracted by the in-store ambience of sales promotions and volume discounts.

Suggested Citation

  • Rajagopal, 2008. "Point of Sales Promotions and Buying Stimulation in Retail Stores," Marketing Working Papers 2008-03-MKT, Tecnológico de Monterrey, Campus Ciudad de México.
  • Handle: RePEc:ega:wpaper:200803
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    File URL: http://alejandria.ccm.itesm.mx/egap/documentos/2008-03-MKT.pdf
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    Cited by:

    1. Mihal Stoyanov, 2010. "Modern concept on the consumer choice as a rational behavior, encouraged by means of sales promotion techniques," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 101-116.

    More about this item

    Keywords

    Sales promotion; shopping arousal; store loyalty; buying behavior; retailing; customer relations;

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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