Due to the keen competition nowadays, companies are increasingly attaching more importance to sales promotion to attract consumers and to relationship marketing to retain them as loyal clients. It is crucial for enterprises to know people’s reactions towards marketing tools in order to implement them successfully. Therefore, this study analyses the impact of these two concepts, with an emphasis on sales promotion, on the customers’ purchase decision-making process by investigating consumers’ points of view towards these instruments. These attitudes will be explained by the notion of deal-proneness. An online survey has been conducted in Germany with 471 respondents. The aim was not just to examine financial advantages but also material incentives which make people buy a certain product, as economic savings are not the only benefit of purchasing a product. Hence, we concentrated on five sales promotion tools, namely samples, coupons, premiums, loyalty cards and sweepstakes. The results, among others, show that samples and coupons are the customer’s favourite actions whereas sweepstakes do not achieve the desired effects for the company. Furthermore, this research states possibilities to connect short-term promotion tools with the long-ranging relationship approach.
Table of Contents
1 Introduction
1.1 Background
1.2 Problem formulation
1.3 Aim of the study
1.4 Limitations
1.5 Disposition
2 Marketing Concepts and the Customer
2.1 Sales Promotion
2.1.1 Purpose and Objectives
2.1.3 Tool box
2.2 Relationship Marketing
2.2.1 Relationship vs. Transactional Marketing
2.2.2 Benefits and Inadequacy
2.3 The Customer
2.3.1 Purchase decision-making process
2.3.2 Deal proneness
2.4 Former research
2.4.1 In general
2.4.2 Sales Promotion in Germany
2.5 The research model
3 Method
3.1 Research design
3.1.1 Approach
3.1.2 Strategy
3.1.3 Questionnaire
3.1.4 Sampling
3.2 Research quality
3.2.1 Reliability
3.2.2 Validity
4 Analysis of the empirical findings
4.1 Demographics
4.2 Effectiveness of promotion tools
4.2.1 Samples
4.2.2 Premiums
4.2.3 Coupons
4.2.4 Loyalty Cards
4.2.5 Sweepstakes
4.2.6 Customer’s preferences
4.3 Effects on the decision-making process
4.3.1 Problem/Need recognition
4.3.2 Information search
4.3.3 Evaluating alternatives
4.3.4 Making the decision
4.3.5 Post-purchase evaluation
5 Discussion
5.1 Consequences for companies
5.1.1 General attitudes
5.1.2 Attitudes towards promotion
5.2 Conclusions
5.2.1 Effectiveness and influences of sales promotion on the decision-making process
5.2.2 Is long-term customer relation appreciated?
5.2.3 Combining sales promotion and relationship marketing
5.2.4 Achievement of aims
5.3 Outlook
Study Objectives and Research Focus
This thesis examines the effectiveness of sales promotion tools in Germany and their impact on consumer purchase decision-making. The authors aim to understand whether these short-term marketing methods can be effectively linked with long-term relationship marketing strategies to enhance customer loyalty and optimize marketing expenditures.
- Effectiveness of various sales promotion tools (samples, coupons, premiums, loyalty cards, sweepstakes)
- Influence of sales promotion on consumer decision-making phases
- Relationship between consumer deal-proneness and marketing instrument performance
- Strategies for combining short-term promotions with long-term customer relationship building
- Analysis of consumer attitudes and preferences in the German retail market
Excerpt from the Book
2.1.3 Tool box
In the following we will exemplify those sales promotion tools that seemed to us as the most relevant in view of the short-term vs. long-term contacts with consumers. First we chose samples and coupons, as they are classical and wide-spread promotion tools; second premiums and loyalty cards, combining short-term incentives like little gifts with long-term relationship strategies as e.g. loyalty points; and third sweepstakes as a special way of promoting a brand as the aim is not to increase sales figures on the short but on the long run.
Samples are offers of a free amount of a product or service to make prospective customers try it. They are often attached to other articles, distributed in stores, e.g. food products and those articles that need explanation, or handed out directly to a special target group like students, who often receive a bag full of samples at the semester start.
In general, sampling is the best method to make people try new products or brands as it is for free and without obligation. Not all consumers are open for innovations, partly due to doubts they have concerning quality or taste, partly simply dominate the shopping habits. Prospective customers can experience the brand directly – often in a private atmosphere – which may make them feel more comfortable. Imagine you are given a sports car 24 hours to try it. What will your friends say? Can you renounce the car that easily? Lest companies waste unnecessary budget for customers trying but not buying the product, an efficient distribution is essential. Furthermore, companies have to think about an adjunct to stimulate repurchase to bind the customer.
Chapter Summary
1 Introduction: Provides background on market developments, defines the research problem, and outlines the study's aim and limitations.
2 Marketing Concepts and the Customer: Discusses the theoretical framework of sales promotion and relationship marketing, including consumer behavior models like deal-proneness.
3 Method: Details the research design, specifically the quantitative survey method, sampling strategy, and an evaluation of research reliability and validity.
4 Analysis of the empirical findings: Presents the primary data collected from 471 German respondents, analyzing the effectiveness of individual tools and their impact on the decision-making process.
5 Discussion: Interprets the findings, draws conclusions regarding marketing strategies for companies, and provides an outlook for future research.
Keywords
Sales Promotion, Relationship Marketing, Consumer Behavior, Purchase Decision-making, Deal-proneness, Samples, Coupons, Premiums, Loyalty Cards, Sweepstakes, Brand Loyalty, Market Saturation, Germany, Quantitative Research, Marketing Efficiency
Frequently Asked Questions
What is the core focus of this research?
The work focuses on analyzing the effectiveness of different sales promotion instruments in the German market and how these tools influence customer behavior at various stages of the purchase decision-making process.
What are the primary marketing tools investigated?
The research specifically covers five key tools: samples, coupons, premiums, loyalty cards, and sweepstakes.
What is the main research objective?
The main objective is to determine if sales promotion is an effective instrument for influencing decision-making and to investigate whether these short-term tools can be successfully integrated with long-term relationship marketing approaches.
Which methodology was used for the study?
The authors utilized a quantitative research approach, conducting an online self-administered survey in Germany, which resulted in 471 valid responses.
What does the main part of the paper cover?
The main body of the paper connects theoretical concepts with empirical findings, analyzing demographic data, the perceived effectiveness of specific tools, and the influence of these tools on the consumer's decision-making journey.
Which keywords define this study?
Key terms include Sales Promotion, Relationship Marketing, Consumer Behavior, Purchase Decision-making, and Deal-proneness.
How do German consumers perceive sweepstakes according to this study?
The study found that sweepstakes are generally ineffective at building brand awareness in Germany; most participants could not remember the organizing companies, and many viewed them merely as entertainment or a method to harvest personal data.
What is the conclusion regarding loyalty cards?
The authors conclude that while loyalty cards are a popular attempt to bind customers, their actual influence on store selection is limited, suggesting they require improvements to provide higher value and better integration to be truly effective.
Are samples considered effective?
Yes, the study concludes that samples are a highly recommendable tool, particularly for driving trial and interest in new products, as they effectively reduce the consumer's "fear factor" regarding the unknown.
- Quote paper
- Vannessa Uhlein (Author), Neele Claussen (Author), 2005, The Art of Gaining and Retaining Customers - Is Sales Promotion the Key to Succesful Marketing?, Munich, GRIN Verlag, https://www.grin.com/document/51655
