Simulation of Sales Promotions towards Buying Behavior Essay Example for Free

Simulation of Sales Promotions towards buy Behavior EssayAbstractThe purpose of this write up was to examine the influence of sales packaging on buy behavior among university students. Specific exclusivelyy, Kongunadu Arts and Science College was chosen as study location. The research data was peaceful from 171 answerings. The data were collected using self-administrated questionnaires. This study constitute that there was no signifi dirty dogt difference among grammatical gender and purchase behavior (t = -1.003, p 0.05). There were signifi fuelt relationship between military posture towards charge sacks (r = 0. 372, p 0.01), coupons (r = 0.270, p 0.01), unload discover outs (r = 0.256, p 0.01) and buy-one-get-one-free (r = 0.338, p 0.01) with purchase behavior. Results of Hierarchical Multiple Regression found that of the quadruple variables, footing discount ( = 0.256) was much influential that of buy-one-get-one free ( = 0.183), coupon discounts ( = 0.014) and free experiments ( = 0.040). The findings of this study would avail marketers to actualize the types of publicity that call backing(a)ly influence purchase behavior of the respondents. Hence, this could help marketers in their marketing cooking to become more(prenominal) competitive and gain profit. Keywords Sales promotion. Buying behavior. University students1. Background of StudyMany get accompaniments atomic number 18 so habitual that consumers conduct very little cognitive activity (Wathieu Murre, 2007). In much(prenominal) cases, it is hard to motivate behaviors much(prenominal) as stigmatise svwtching or increases in the number of units purchased. One of the advant climb ons of promotions is that they can stimulate consumers to think and evaluate taints and purchase possibilities when they otherwise may not befuddle. Therefore, many marketers and retailers utilize polar kinds of promotion tools and strategies in order to understand the prefer ence of consumers and boost their sales. Normally, sales may inveigle more customers spend their money, make consumption and purchase the products they wish during this super save period as the they believed that during the sales promotion, outlays of all products be cheaper than usual.This phenomenon shows that some of the consumers ar easily tempted when they see the word of sales promotion. Other than price reductions, coupon or rebate knuckle undern up by the retailer and other promotional tools like free sample, bonus pack and buy one get one free were found to be bring on consumer buy more than they expect ( gilbert, 1999). What ar more crucial now are consumers themselves not awake the influence of sales promotion on their buying deportment and oddly little is understood or so their responds to the various promotional strategies practice by marketers. This leave eventually lead to over-consuming and buy the products which are not necessary and useless.2. Purpose and Significant of StudyResearch on marketing tools is indeed important to understand the approximately influencing tools to compete with competitors. Through this info, marketers and retailers could well plan their resources to gain the maxiirium profit. Thus this study aim to analyse the preference of consumer on dissimilar promotional tools, marketers and retailers will able to awake(predicate) of the consumer behavior so that they can utilize the right and th most impressive promotion technique to curl up customers. From the consumer perspective, this study will reveal the consumer strength toward sales promotion and thus raise the awareness of consumers about their behavior that influenced by sales promotion. It as well shews part understanding and information to consumers where their purchase behavior will be bear upon several(predicate)ly due to different type of promotional tools.3. Literature ReviewPromotion is one of the techniques to attract consumers to pur chase more or try a product or service. Severe outcomes of promotion include sales increased, quantify of stock utilise and attract new consumers. For example, price promotion refers to temporary price reduction which offers to consumers. The characteristic is the retailer would label a specific percentage or cash preservation for the products or serve. Previous studies indicated that a sudden increase of sales would experience by retailers because of price-conscious of consumers (Banks Moorthy, 1999 Kopalle Mela, 1999 Smith Sinha, 2000 Gilbert Jackaria, 2002). check to Blackwell, Miniard and Engel (2001), price discounts played operative theatrical roles in influencing consumer product runnel behavior by which indirectly attract new consumer.In term of coupon promotions, those consumers comport ined coupon are entitled to get discount of the products at its brighial price (Ndubisi shoot the breeze, 2006). Previous study found that coupon promotions do not have signif icant effect on volume of product purchase by consumer (Gilbert Jackarias, 2002). Later, a study conducted by Ndubisi and Chew (2006) at Malaysia has re-affirmed the statement by Gilbert and Jackarias (2002). They likewise describe that coupon promotion was among the least employ and unpopular promotional tools by consumers. However, the results in Dotsons (2001) research proved that women report being more likely to use only coupons than men (p 0.05) and the youngest age group (less than 25 years old) reports a high possibilify of victorious advantage of bonus packs (p 0.05), price deals (p 0.05) and samples (p 0.05) than the age group of 35 to 54 respectively. fit in to Kardes (1999), marketing managers aware of product trial related to behavioral experience of consumers towards a product. Thus, sending free sample birth lead in promotional tools. Free samples refers to consumers are giving a free small sample of the product so that consumers have the chance to try an d use the product. Shimp (2003) reported that a free sample had influence on consumers buying behavior charm Gilbert and Jackaria (2002) have shown otherwise. Free sample was positively related to immediate sales of that particular (Lammers, 1991).Promotion technique of buy-one-get-one-free is one of the types of bonus packs in which the consumers are offered the additional product at the ordinary price but are in an enhanced package. Consumer would be easily persuaded to buy products as there is no extra cost need and more expensive perceived by consumers (Sinha Smith, 2000). Besides, this promotion technique would beneficial to retailers in speed up the stock dynamic headroom compared to price promotions (Li, Sun Wang, 2007).Relating with buying behavior, consumers usually have endless demand to ftilfiU their needs and satisfaction to obtain something new or better as every individual has their own behavior, spatial relation and thought while choosing products, services and making purchase decision. Consequently, there is a large body of literattire, which has examined consumers buying behavior and the studies have reported that many factor would infiuence consumer behavior whether buy or not to buy a product.According to Smelser and Baltes (2001), most of the daily life activities dominated by buying goods behavior and also experience which gained from the place such as shopping centers, cify centre, shops, recreational park, tourism centre and so on, where some stimulation r can be stimulated. William (2002) revealed that social class has significant determination on purchase evaluation criteria. strength formation, motivation, value orientation, income, socialization during childhood and education levels will influence ones social class. According to Yip (2003), social class of an individual indirectly shows that low income would cause limited choice when making purchase decisions. spicy purchasing power, sales someone and sales circumstances wa s among three key factors which influenced impulsive clothes buying practice among women consumer (Naimah Tan, 1999).4. MethodologyFor the convinence of the researchers Kongunadu College of Arts and Science was selected as location of study. The data collection process was conducted among the students with antecedent permission from the department. Even though this small sample might not able to representative of all the population, it is considered as appropriate sampling because of using a relatively homogeneous group and this is helpful to denigrate random error that might occur in using a heterogeneous sample such as the general public (Calder, Philips Tybout, 1981).Pilot study had been done before the actual study take place. The purpose of pilot study was to assess the reliability of the instruments that used in actual study. For this research, the pilot raise had involved a get of 25 students in order to ensure that the question were understandable by the actual respond ents. In addition, pre- audition allowed the researcher to improve confidence and to make sure that the items that existed in questionnaire was suiting the studys requirement.4.1 instrumentationThe present study used the questionnaire as the instrument of the study. The questionnaire was divided into three parts that were background of the respondents, the respondents lieu and perception with regards to different promotional tools and buying demeanor of respondents. In commencement part of questionnaire, each respondent was asked to answer both open-ended and close-ended questions. Open-ended questions allowed respondents to generate an answer without limitations such as age and family periodic income. On the other hand, close-ended questions required respondents to select from a set of answer already provided such as gender and race. Second part of the questionnaire was consisted of thirty two items where each different promotional tool was heedful using eight items. The items developed to understand respondents military strength towards different promotional tools. There were foursome different promotional tools tested (i.e., price discounts, coupons, free samples and buy-one-get-one-free).Respondents were required to give a respond on a four stage no. scale (strongly disagree, disagree, agree, strongly agree). The last of the questionnaire was also used four points ordinal scale (strongly disagree, disagree, agree, strongly agree) where there were thirteen items measuring the consumers buying behaviour, adopted from Bakewe and Mitchell study. In the addition, the responses are given from one point in one end to four points in the other end. The Statistical case for Social Science (SPSS) version 16.0 was used to analyze data.For analytical purposes, each scale of the total attitude level (price discounts, coupon discount, free samples and buy-one-get-one-free approach) were categorized into two categorized, solely ground on the mean score of eac h measurement. The reliability for attitude towards price discounts scale was 0.752 while the reliabiliy of attitude towards coupons scale was 0.827. Furthermore, the reliability for attitude towards free samples scale was 0.862 and the reliabiliy for attitude towards buy-one-get-one-free scale was 0.806. Buying behaviour scale had achieved reliability of 0.680. These five instruments had achieved welcome reliability for business and social science research.5. Research Finding and Discussion5.1 position towards Price Discounts remit 1 demonstrates that more than one- half(prenominal)(a) of the respondents agree that they prefer brands which offer price discounts, but more than half of the respondents prefer their favourite brands than brands which offer price discounts. This study also interested in indentifying about the crime syndicate of attitude towards price discounts. The scale of the total attitude towards price discounts was then categorized into two concern groups. Res pondents who scored above the mean scale (2.56 points) were categorized as having lucky attitude towards price discounts and respondents who scored below of the mean scale were categorized as having unfavourable attitude towards price discounts. send back 1 showed that less than half of the respondents (40.4%) had unfavourable attitude towards price discounts, where as there were 69.0% of the respondents have favourable attitude towards price discounts.5.2 Attitude towards CouponsTable 1 indicated that the first statement was agreed by most of the respondents which were 53.2%. They acknowledged that a brand offers coupon would be a reason for them to buy. The respondents feel that a brand which offers coupon doesnt give them a good buy (56.1%). Respondents do not give priority for the brands which offers coupon and they prefer their prescribed and favourite brands more. The data in Table 3 showed that the score of total attitude towards coupons of the respondents in run of lower than 2.44 points which were 49.7% of the respondents have unfavourable attitude towards coupons. On the other hand, there was 50.3% of the respondents have favourable attitude towards coupons. This indicated that exactly half of the respondents have positive attitude towards coupons promotion in this research.5.3 Attitude towards Free SamplesAccording to Table 1, exactly half of the respondents agreed that when they buy a brand that offers free samples, they feel they are getting a good buy (51.4%) and free sample has allowed them to buy more quantities of the same product. Moreover, half of the respondents prefer to buy the same brand even if they have free samples on other brands. However, Shimp (2003) reported that free sample had influence on consumers buying behaviour.As presented by Table 3, the scale of the total attitude towards free samples score cut point for two equal groups was 2.46 points which mean the group who scored higher than the mean scale of 2.46 has favourable attitude towards free samples and respondents who scored below of the mean scale were classified as having unfavourable attitude towards free samples. Based on Table 3, it proved that majority of the respondents (55.6%) have favourable attitude towards free samples while there were 44.4% of the respondents have unfavourable attitude towards free samples. This showed that there were 95 respondents (55.6%) out of the 171 respondents willing to consume more during the sales promotion with free samples technique.5.4 Attitude towards Buy-One-Get-One-FreeTable 1 illustrated the respondents in this study have agreed perception on all of the eight statements related to buy-one-get-one-free promotion tool. It showed that the percentage of the respondents who agreed on the statements was more or higher than respondents who disagreed on it. For example, 62.6 of the respondents agreed that a brand offers buy-one-get-one-free could be a reason for them to buy. Based on Table 1, it presented the scale of the attitude towards buy-one-get-one-free cut point for two equal groups were 2.6 points. Respondents who scored below the mean scale ( 2.6 points) of the attitude towards buy-one-get-one-free were categorized as having unfavourable attitude where as respondents who scored above the mean scale (2.6 points) were categorized as having favourable attitude towards buy-one-get-one-free. In Table 3, there were 48% of the respondents who have unfavourable attitude towards buy-one-get-one-free while 52% of the respondents have favourable attitude towards buy-one get-one-free.5.5 Respondents Buying BehaviourAccording to Brown (2007), buying behaviour refers to the decision processes and acts of people involved in buying and using products. There were total of 13 statements used to examine the respondents buying behaviour. The responses were scored by four point ordinal scale. Table 2 indicated the descriptive outline of each question for buying behaviour. The analysis had been di vided into two levels of buying behaviour agree and disagree. From Table 2, it showed that majority of the respondents (80.7%) agreed in general, they try to get the high hat overall quality and 81.8% of them agreed they look very carefully to find the best value for money. More to the point, there were 71.9% of respondents agreed once they find the product they like, they will buy it on a regular basis and 81.3% of them would carefully watch how much they spend. Among the 13 statements, the statement of I normally shop quickly, buying the first product or brand I find that seems good enough agreed by most least respondents which were 56.8% of respondents.The results of buying behaviour level as shown in Table 3. Equal range was used to categorize the buying behaviour that is low and high level Respondents who under 2.87 points and above were categorized as having high levels of buying behaviour and vice versa. There were 49.7% of respondents in category of low level buying behavio ur and 50.3% of respondents have high level of buying behaviour. The respondents, who have high level of buying behaviour normally, have high level of involvement where they are paying more attention towards sales promotion (Raaij et al, 2001).The result of Independent Samples T-test showed that there was no significant difference between buying behaviour and gender (t = -1.003, p 0.05). It was consistent with previous study by Chu (2006). However, the mean score of buying behaviour of phallic (M = 2.8390) respondents is slightly lower than female respondents (M =2.9059).5.6 The relationship between the selected variables and buying behaviourThe result of Pearson Correlation test revealed that there was a significant relationship between attitude towards price discounts and buying behaviour among respondents (r = 0.372, p 0.001) (refer to Table 4). The results of this study reaffirmed that findings of previous study by. Blackwell, Miniard and Engel (2001) that price discounts pla y significant roles in influencing consumers purchase trial behaviour, and Smith and Sinha (2000), price promotions can induced consumers buying behaviour and result in a absolutely term increases in sales. There was a significant relationship between attitude towards coupons and buying behaviour (r = 0.270, p 0.001). The result of this study was inconsistent with previous study in Kota Kinabalu, Malaysia which found that coupons have no significant relationship on product trial ptu-chase (Ndubisi Chew, 2006). This may caused by locality difference.This study also found that, there was a significant relationship between attitude towards free samples and buying behaviour (r = 0.256, p 0.001). The result is consistent with Shimp (2003) that a free sample had influence on consumers buying behaviour. Besides, Lammers (1991) also verified that free samples did have a positive impact on immediate sales of the product. Lastly, there was a significant relationship between attitude toward s buy-one-get-one-free and buying behaviour (r = 0.338, p 0.001). It showed that the promotion tools with buy-one-get-one-free did attract and induce consumers favourable attitude on buying behaviour.Table 5 summarizes results of a multiple degeneration analyses of the buying behaviour. All the four selected variables namely price discounts, coupons, free samples and buy-one-get-one-free which significantly related to buying behaviour was regressed using hierarchical method. Model 1 was used to in interpreting the buying behaviour of the respondents. Of the four variables, price discount ( = 0.256) was more influential that of buy-one-get-one free ( = 0.183), coupon discounts ( = 0.014) and free samples ( = 0.040).6. Implications, Recommendations and Conclusions6.1 ImplicationsEvery consumer has their own ad hominem characteristic in particular in choosing and making purchase decision. With the growing number of sales promotion, it is important to determine the consumers percept ion towards their buying behaviour. Besides, this study also examines several factors which included socio-demographic background (gender) and attitude towards four different promotional tools on buying behaviour. From the findings, it was noticed that consumers respond positively to the various promotional tools that is promoted by the marketers. It is because consumers are believed that during the sales promotion, prices of all products are cheaper than usual and they felt they are getting a good buy. It meant that the more positive or favourable the attitude towards promotional tools, the more increasing possibility consumers make purchase decision during sales promotion. Gender was found to have no significant difference on buying behaviour.The results of this study have several implications that would be beneficial to marketers, consumers and future research. From the marketers perspective, they can have a better understanding of UPM students buying behaviour so that they can b etter predict the wants and needs of potential consumers. The information derived from this research enable marketers to aware of the consumer behaviour. It will help them utilize the right and the most effective promotion technique to attract customers. Moreover, the study from Ndubisi and Chew (2006) also supported that by offering the right promotional tools, it can help organizations carefully plan their promotional strategies by giving preference to the more effective tools.It is vital because the precise marketing strategies decision assistances the company to minimize cost and maximize their profit. In addition, the veritable research made consumers more aware of their easily influence behaviour to sales promotion because it present better understanding and information to consumers where they respond differently due to different type of promotional tools. The research also created consumer awareness to make careful analysis before they decide to buy products and services. H ence, the consumers will carry out the importance of understanding the changing environment and update themselves from time to time (Hang, 2008). Finally, consumers were benefited through this study and graceful smarter day by day. This study was also useful to academicians where current study could serve as a reference and may provide some guides for researchers who would like to study about the same topic.6.2 RecommendationsAlthough this research has interpreted vital steps to identify the factors that influence buying behaviour, it also has certain limitations. Firstly, the limitation of the data prevents get along exploration of the study. There was an age limit and only 171 respondents have been participated in this study. The respondents were almost homogenous for age types because there were between 18 to 24 years old and represent early adulthood only. distinct stages of life cycles of respondents would yield different results. Therefore, future researchers are suggested to increase the sample size variety especially in respondents age to decrease the error for the purpose of the generalizing result to a wider population. They can do similarity among early, middle and late adolescents in regards to buying behaviour.Secondly, future researchers may further scope to duplicate the study in different environment and different geographical locations. Different environment played a significant factor that influence respondents behaviour specifically workplace, supermarkets and shopping complexes or malls. Working individuals could behave in a different manner compared with this sample. Besides, the individuals who do not have occupation such as housewife and retired person may also behave differently because the understanding and experience of respondents towards the questions might influence their answers. Since this study was conducted in Kongunadu Arts and Science College, Coimbatore, it could not represent other people in urban or country-bred area s where the quality of life is different.Thirdly, future researchers are suggested to use interview technique in doing research especially at the place here transactions happen. This will enable the researchers obtain an accurate information based on the respondents fresh memory Last but not least, this research has only examines four promotional tools that influence buying behaviour. Future researchers are suggested to determine other promotional tools such as rebates, sweeptakes, in pack premiums and so forth. Besides, the study can also specify in category of products or services to have more focus information.However, for more meaningful findings the different promotional tools can be investigated unneurotic rather than separately so that the interactions among them can be better understand. As a result, it can assist marketers and consumers understand other promotional tools that may influence the buying behaviour.6.3 ConclusionsSales promotions play an important role in the m arketing programs of marketers and retailers. A large percentage of marketers sales are made on promotion. This situation is becoming apparently when the financial crisis and economic downtime happened in 2008. The marketers are rather use variety of promotional tools to offers consumers an extra inducement to buy their products than advertising in classic media. It is supported by the research from Curzon (2009) who stated that sales promotions are not only effective in attaining short-term sales as they are also more cost-effective compared to other integrated marketing communications tools such as advertising.In conclusion, the consumers attitude towards different promotional tools on buying behaviour is favourable. It showed that sales promotion tools are appurtenant or complementary to existing business as an additional marketing strategy. This research demonstrated that consumers buying behaviour were motivated by multiple types of factors, including socio-demography, promot ional tools such as price discounts, coupons, free samples and buy-one-get-one-free. In addition, the framework provides new insights into the understanding of how students respond to various promotional tools offered by marketers and the impacts on their buying behaviour, which may be essential for marketers in order to utilize accurate marketing strategies to promote products.