ABSTRACT
The study examined the effect of sales promotion on consumer brand loyalty. In addition, it is imperative to identify some of the problems militating against the issue of brand loyalty. The objective of the study is to examine the relationship between sales promotion incentives. (1) It geared towards determining the premium gift offer on consumer brand loyalty. (2).Sample offer. (3).contest offer. (4) Price packs. (5) Coupon offer. The study was carried out in Umuahia North local Government area of Abia State. In This Study, both the primary and secondary data were used in the collection of the data. A sample size of 383 respondents would be for the study. The data collected for the study will be analysed based on the objectives. Objectives (1), (2), (3) will be analysed using simple descriptive statistics such as tables, percentages and frequencies. In Summary of the finding, it was discovered that sales promotion are relevant in the marketing communication mix campaign for consumer products. Sales promotion is a remarkable channel to make more sales and maintain increase market share. Above all, sales promotion has proved to be a strong tool for combating competition among company’s competitors. From the above findings, the researcher observed that sales promotion is encouraging and recommended it as an appropriate and acceptable marketing strategy for achieving company’s objective.
TABLE OF CONTENTS
Title Page…………………………………………………………………… i
Declaration…………………………………………………………………….ii
Certification………………………………….……………………………….iii
Dedication……………………………………………………………………. iv
Acknowledgment……………………………………………………………....v
Table of Contents …………………………………………………………....vi
List of Tables…………………………………………………………………ix
Abstract………………………………………….……………………………x
CHAPTER
ONE
1.1 Introduction……………………………………………………….… 1
1.2 Statement of Problem ……………………………………………… 4
1.3 Objectives of the
Study…………………………………………….. 4
1.3.1 Specific Objectives ………………………………………………. 5
1.4 Research Questions………………………………………… ……… 5
1.5 Research Hypothesis ……………………………………………… 6
1.6 Significance of the Study…………………………………… ……… 6
1.7 Scope of the Study…………………………………… ……............. 7
1.8 Limitations………………………………………………… ……… 7
1.9 Operational definition of
Term…………………………… ……… 8
CHAPTER
TWO
2.0 Review of Related Literature……………………………….. ……… 9
2.1.1 Conceptual Framework ……………………………………….. 9
2.1.2
Factors contributing to sales increase………………………… 11
2.1.3
Sales promotion planning………………………………. ……… 13
2.1.4
Setting sales promotion objectives……………………………... 14
2.2
Selecting the sales Promotion Tools…………………….. ……… 16
2.2.1
Implementing the sales Promotion Programme……………… 18
2.3
Evaluating the Sales Promotion Results …………………………… 18
2.4 Literature Review
……………………………………………………. 19
CHAPTER
THREE
3.0 Research methodology……………………………………………… 21
3.1 Research Design…………………………………………………… 21
3.2 Population of the study……………………………………………. 22
3.3 Sample and sampling techniques …………………………………. 21
3.4 Research Instrument ………………………………………………. 23
3.5 Validation of the instrument ……………………………………….. 24
3.6 Scoring procedure………………………………………….. ……… 24
3.7 Method of data analysis…………………………………………… 24
3.8
Model specification ……………………………………………. 25
CHAPTER FOUR
Presentation and Analysis of
Data................................................ …….. 26
4.1
Introduction.......................................................................... …….. 26
4.2 Questionnaire Distribution and
return.................................... …….. 26
4.3 Data Analysis: Presentation and
Responds.................................. 27
4.4 Test of Research
Hypotheses.............................................. ……… 35
CHAPTER FIVE
Summary of Findings, Conclusions, and
Recommendations................ 37
5. 1 Summary of findings ................................................................... 37
5.2 Conclusions................................................................................ 37
5.3 Recommendations....................................................................... 38
Reference…………………………………………………………… 40
Appendix 1 ………………………………………………………… 42
Appendix 11…………………………………………………………… 43
LIST OF TABLES
4.1 Questionnaire
Distribution ……………………………………… 26
4.2
Sex of Respondents …………………………………………….. 27
4.3 Marital
Status of Respondents ………………………………….. 27
4.5 Usage
of Origin Product by Respondents ………………………. 28
4.7 Premium
Gift offer and Customer brand loyalty………………… 29
4.8 Contest
offer and Customer brand loyalty……………………….. 30
4.9 Sample
offer and Customer brand loyalty ………………………. 31
4.10 Game
offer and Customer brand loyalty ………………………… 32
4.11 Sample
offer and Customer patronage …………………………... 33
4.12 Price
pack and Customer patronage ……………………………... 34
4.13 Logistic
regression summary …………………………………….. 35
CHAPTER ONE
1.1 INTRODUCTION
Sales promotion became an essential
motivating factor in the area of marketing in any organization whether in the
brewery industry or any other company. Up until several years ago, promotions
were considered less effective when given the choice of traditional advertising
or sales promotions.
Today that playing field has changed with
sales promotions leading the way in both local and national marketing budgets
(Garabian, 2013). Despite the fact that sales promotion has become the most
predominant strategy in the marketing of consumer packed goods, accounting for
almost a quarter of the marketing budget of consumer product companies,
relatively less research attention has been given to the investigation of the
consequences of sales promotions for brand preference after promotions have
ended.(Del Vecchio, Henard & Freling, 2006). In addition, most sales
promotion research studies put emphasis on monetary promotions, it was not
until the late 1990s that studies on promotion started to pay attention to
nonmonetary sales promotions. Most early research studies on sales promotions
concentrated on the effects of sales promotions on sales and profits, the
effects of promotions on purchase behaviour during the promotional period, and
the effects of a promotional purchase on subsequent choice behaviour. Research
thereafter made reference to these but began a different stream. The new
research had more emphasis on the role of reference price, which is the
internal price a consumer sets for a product based on the worth of the product
to the consumer (Yi and Yoo, 2011) and the long-term effects of monetary
promotions. Research was devoted almost in its entirety to the utilization of
coupons and price reductions (monetary promotions) exclusively. Diamond and
Campbell (1989) suggested that not all sale promotions will behave in the same
way with regards to their long-term influence to reference price. The price
observed at the moment of purchase is a fundamental variable. Consumers
perceive again when the reference price is higher than the observed price, and
perceive a loss when the reference price is lower than the observed price.
There is empirical research that shows
promotion activities have indirect effects on brand loyalty through customer
satisfaction, which in turn has direct effects on brand loyalty (Li-xin &
Shou-Lian, 2010).
Nevertheless, most researchers claim that sales promotions yield negative
effects, including price sensitivity (Chandon, Wansink, & Laurent, 2000;
Neslin, 2002), brand switching, and lower repeat purchase rates (Gupta,
1998). In addition, societal concerns
may add to the preference for instant gratification versus long term
gains. In a study that looked at
promotions for cosmetics and toiletry retailers in Hong Kong, monetary rewards
such as price packs and premiums considered ‘instant-reward” techniques were
preferable to the “delayed rewards” techniques. In this instance, societal
norms were sited as a possible influence. This is congruent to the study of
Taiwanese (Liao, 2006) consumers. In a study of Indian consumers, several types
of sales promotions were studied in relationship to their potential to
influence behaviour. It was found that premiums were the most effective tool as
well as bonus packs and price discounts, while the more traditional promotional
tools, coupons and scratch offs, were not as effective. The authors posit that
the consumers are less educated and therefore, more concerned about immediate
value for their money and not with promotions that involve active search
(Mittal & Sethi, 2011).
In United States, in accordance with the
study of Fogel & Thornton (2008) indicated that consumers are “hassle free”
disposed when it comes to participating in a sales promotion. Promotions such
as rebates, were considered too difficult to redeem due to the higher effort
involved. According to Te’eni-Harari
(2008), young people were investigated as to their preferences for premiums.
Since they grow up in such a fast-paced environment, and tend to be highly
selective, their attention to a premium offer will probably be stronger for a
high involvement product than a low involvement product. This may result in a
more positive attitude toward the brand.
Our study adds to the current literature
as there is a need for research that includes both nonmonetary and monetary
promotions and reports the impact on long-term effects, such as brand loyalty
and the type of risk associated with a product or service. Consumer involvement
depends on the degree of personal relevance that the product holds for the
consumer. It is usually classified as high and low. High involvement purchases
are those that are very important to the consumer and are usually associated
with high levels of perceived risk.
Low involvement purchases are not very
important to the consumer, hold little relevance, and have little perceived
risk (Schiffman and Kanuk, 2009). The purpose of this study is to establish the
impact of different types of monetary and nonmonetary promotions on brand
loyalty and its relationship to product involvement.
1.2 Statement of the Problem
This
era of business competition ushered most business organisation to adopt the
most effective promotional tools in marketing their products. The Nigeria origin
non alcoholic drink company has tried to adopt sales promotion, and other
promotional activities in the sales of products. Though sales promotion have
been the most effective tools used by the sales force, producers to market
their product. Sales promotion offer incentive for buying their product like,
giving free drinks, and other prices that could be won during their promotion period.
They have been large sales of origin product performance and sales promotion.
1.3
Objectives of the study
The broad objective of the work is to
analyse the effect of sales promotion on consumer brand loyalty of origin non
alcoholic drink in Abia state.
1.3.1
Specific objectives
The specific objectives will include the
following;
i. Ascertain the effect of premium gift
offer on consumer brand loyalty.
ii. Ascertain the effect of sample offer on
consumer brand Loyalty in Abia State.
iii. Ascertain the relationship between
contest offer and brand loyalty.
iv. Ascertain the significant effect of
different price packs on brand loyalty.
v. Ascertain the coupon offer on brand
loyalty.
vi. Ascertain the effect of the sales
promotional tools on consumer brand loyalty.
1.4 Research Questions
i. To what extent does premium gift offer
effect consumer brand loyalty.
ii. To what extent does sample offer effect
consumer brand loyalty.
iii. To what extent does contest offer
effect consumer brand loyalty.
iv. To what extent does price discount
effect consumer brand loyalty.
v. Examine the effect of sales promotional
tools on consumer brand loyalty.
1.5 Research
Hypothesis
H1: There is no significant Relationship
between premium gift offer and brand loyalty.
H2: There is no significant Relationship between
sample offer and brand loyalty.
H3:
There is no significant Relationship
between contest and brand loyalty.
H4: There is no significant Relationship between
price discount and consumer brand loyalty.
H5: There is no significant Relationship between
coupon and consumer brand loyalty.
1.6 Significance of the study
The fact that sales promotional activities
have been on the increase these days portrays its significance in the marketing
of consumer products. However, it should be noted that most companies record
huge sales during sales promotion .it is now left to the company concerned to
conduct a cost benefits analysis. This will afford them the opportunity to know
if it is beneficial or not.
Furthermore, the research on sales
promotion is vital to the researcher because it enables the researcher to know
how sales promotion can boost sales revenue.
In addition, it will enable the company to
ascertain the degree of his product acceptance in the university community.
Similarly, the research work is important
to the company because it will assist in determining the market share of the
firm product.
The study will also be of benefit to the
origin drink industry to know the indispensable place of sales promotion in
customer brand loyalty and satisfaction.
1.7 Scope of the study
The research study examined the extent of
the sales promotion on brand loyalty of food drink. The geographical scope in
Abia state. The subject scope is consumer behaviour and marketing management.
The courage scope is consumers of orijin drink in Abia state
1.8
Limitations
The limitations associated with this
research work can’t be over emphasized. In the first place, the researcher is
constrained financially and his militates against extensive research work. A
research of this nature generally involves cost in terms of survey,
questionnaire administration, collection of data and the production work. As a
student with limited financial resource, these costs become more glaring and
different to settle and therefore stretched the financial position of the
researcher.
There were the problems of illiteracy and
prejudice, distrust arising from the ignorance of the respondents on the basis
of the study. Some respondents never understood what were required of them and
why the research was being carried-out.
Again, the time frame allocated to the
researcher work is grossly inadequate. This issue of poor library facilities
like textbooks; journal, magazines, newspapers covering the topic under
research posed a grave challenge to the researcher in carrying out extensive
research.
1.9
Operational definition of terms
Sales
promotion
1. Sales
promotion is one of the components of marketing mix which is usually of short
term incentive nature designed to stimulate sales and quick action.
Consumer brand loyalty
2. This is the extent to which a consumer is
committed to a product.
Communication
A means of informing, persuading and
reminding customers about the nature and availability of a product.
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