The effect of Sales Promotion tool on convenience goods purchase

decision- A case study of working women in Chittagong

Submitted To:
Ms. Kaniz Fatema
Lecturer
Department of Marketing
Faculty of Business Studies
Premier University, Chittagong.

Submitted By:
Bijoy Krishna Datta
ID: 14-028-1-01-06787
Department: Marketing
Batch: 28th
Faculty of Business Studies,
Premier University, Chittagong.

Date of Submission: 25th April, 2018

I
The effect of Sales Promotion tool on convenience goods purchase
decision- A case study of working women in Chittagong

Submitted To:
Ms. Kaniz Fatema
Lecturer
Department of Marketing
Faculty of Business Studies
Premier University, Chittagong

Submitted By:
Bijoy Krishna Datta
ID: 14-028-1-01-06787
Department: Marketing
Batch: 28th
Faculty of Business Studies,
Premier University, Chittagong

Date of Submission: 25th April, 2018

II
 Letter of Transmittal
April 25, 2018

Ms. Kaniz Fatema

Lecturer
Faculty of Business Studies
Premier University, Chittagong
Dear Madam,

As per given schedule, I am submitting the attached report entitled The effect of Sales
Promotion tool on convenience goods purchase decision- A case study of working
women in Chittagong.

This report contains an entire discussion about the effect of Sales Promotion tool on
convenience goods purchase decision- A case study of working women in Chittagong.
I have collected as much information as possible from several sources. I have tried my
best to prepare this in consistence with the optimal standard under direction. It is a great
pleasure for me to present you with the research report as a requirement of BBA.

I hope you find this report satisfactory.

Sincerely yours,

-------------------------

Bijoy Krishna Datta

ID: 14-028-1-01-06787
Department: Marketing. Batch: 28th
Faculty of Business Studies
Premier University, Chittagong

III
 Acknowledgment

The Research Report on “The effect of Sales Promotion tool on convenience goods
purchase decision - A case study of working women in Chittagong” is hoped to be one
of the good research in terms of the concepts used. It required a lot of studies & practical
knowledge on the terms part carried out at the university. A research of this proportion
could not be completed without the assistance of some benevolent people whom I must
thank.

I would like to particularly thank my instructor Ms. Kaniz Fatema, Lecturer, Department
of Marketing, who gave me lots of inspiration guidance support and encouragement. She
points out the mistakes and also helps me to clarify my research. Her broad and profound
knowledge gave me great inspiration as well as great help.

Finally, I would like thanks to Almighty God for enabling me to the successful
completion of my research & also I offer my regards to all of those who supported me in
every respect during this research.

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 Executive Summary

The report contains vast information regarding “The effect of Sales Promotion tool on
convenience goods purchase decision - A case study of working women in
Chittagong”

Here consumer responses towards various sale promotions are analyzed. And different
sales promotions such as coupon, discount buy 1 get 1 etc. and how they responses and
how effective it is to gather market etc. are explained here.

This report work is categorized into three chapters. The first chapter is the Introduction
and it covers the background of the study, Objectives, Methodology and Limitation. In
Methodology, there some part like Research Design, Population and Sampling, Data
Gathering and Analysis.

Chapter two is the Literature Review, Propose Model and Hypothesis. it cover reviews
of existing literature on the subject matter and draws meaningful conclusions based on
the existing works done in the field.

Chapter three applies data analysis methods to the data gathered and presents the
findings that bothers on the objectives of the study in the form of tables and graphs with
explanations, here I see that Attitude towards Buying Behavior the mean value is 3.69.
From this value it stated that it is effective.

Chapter four includes Problems & Recommendation. Where the problem of the
research where stated and how to solve these recommendation is also given.

Chapter five presents the conclusion of the study. This chapter is followed by the
reference which acknowledges all persons and institutions cited in the study and the
appendix which contains all other materials that bothers on the study.

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Table of Contents
Chapter 1 ...................................................................................................................... 1
Introduction .................................................................................................................. 1
1.1 Introduction ......................................................................................................... 1
1.2 Objectives: ........................................................................................................... 2
1.3 Methodology: ....................................................................................................... 2
1.3.1 Research Design ................................................................................................... 2
1.3.2 Population and Sampling ................................................................................ 2
1.3.3 Data Gathering and Analysis ............................................................................ 3
1.4 Limitations ........................................................................................................... 3
Chapter 2 ...................................................................................................................... 4
Literature Review ......................................................................................................... 4
2.1 Promotional mix...................................................................................................... 4
2.2 Sales promotion ...................................................................................................... 4
1.3 Types of Sales Promotions .................................................................................. 5
2.4 Advantages of Sales Promotion ............................................................................... 7
2.5 Disadvantages of sales promotion ........................................................................... 8
2.6 The Impact of Sales Promotions .............................................................................. 9
2.7 Convenience Goods .............................................................................................. 10
2.8 Types of Convenience Goods: Convenience goods can be classified into four types10
2.9 Consumer behavior and decision making .............................................................. 11
3.1 Frequency ......................................................................................................... 13
3.2 Descriptive Statistics ......................................................................................... 14
3.3 Reliability ........................................................................................................... 15
Chapter 4 .................................................................................................................... 17
Problems & Recommendation ..................................................................................... 17
Chapter 5 .................................................................................................................... 17
Conclusion .................................................................................................................. 17
References .................................................................................................................. 19
Appendix .................................................................................................................... 20

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VII
 Chapter 1
Introduction

1.1 Introduction

In these report we discussed why do people buy & what they buy? To what extent do

environmental forces influence the thought process? Numerous variables have been proposed to

describe the relationship between sales promotions and consumer buying behavior. The

consumption process appears to begin with an external stimulus that strikes the consumer’s

information processing. Sales promotions, such as coupons, rebates, premiums, and samples,

typically are viewed as temporary incentives that stimulate the sales of a product or service. There

are different ways to classify sales promotions; the most basic is to classify them between trade

promotions and consumer promotions. Here I discuss about how various sale promotion influence

customer to buy goods and services how effective they are and their feedback regarding this issue.

Sales promotion is the techniques mainly are used by marketer in order to influence and encourage

consumers and end users to purchase certain product in a certain time period. Sales promotion has

a short term influence on sales; hence it is mainly offered for a short term. In case that certain

brand launched a new product mainly consumers do not have information or experience regarding

this new product, therefore sales promotion is recommended to encourage this consumer to try and

purchase this product. As it is clear that sales promotions' objective is influencing on consumer

buying behavior (Kotler & Armstrong 2002) agreed with the pervious definition. Moreover, they

classified sales promotion as one of the five backbones of marketing communication mix.

Marketing communication mix is mainly tools that are used to persuade consumers to purchase

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certain product or service, sales promotions are one of these tools that are short term motivations

that effect on consumer buying behavior (Kotler 2002).

1.2 Objectives:
The main objective of the study was to find out the effect of Sales Promotion tool on
convenience goods purchase decision - A case study of working women in Chittagong

There are many sub objectives are as follows:

 Attitude towards Price Discount

 Attitude towards Coupon Discount
 Attitude towards Free Sample
 Attitude towards Buy one get one.
 Attitude towards Buying Behavior

1.3 Methodology:

1.3.1 Research Design:

Here I conduct Conclusive Research, where I follow survey pre coded, close ended and
structured questionnaire. I also use 5 points required scale research.

1. Strongly Disagree
2. Disagree
3. Moderate
4. Agree
5. Strongly Agree

1.3.2 Population and Sampling:

I collect my data from sample. The data has been collected from working women. I collected 60
responses from the respondent Perspective

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1.3.3 Data Gathering and Analysis:

I collect all the data from the field & the purpose behind such collection to gather quantitative
information for having experience & for practical knowledge. All the data are collected through
direct personal survey method. I use standard edition and use Pre coded procedure & categorize
the data in name, address, gender, age, marital status, education, occupation and income .After
collection of primary data; I input the data to SPSS software and analyzing the data by
Demographical Discussion, Reliability, Descriptive Statistics, Correlation and Regression.

1.4 Limitations:
During fieldwork, I face some problems:

1. Some Respondents answer the questions without reading the questions properly.

2. Though I collected data from working women many of the women didn’t agree to
share their info.

3. Some Respondents did not provide actual answers.

4. Lack of effective interaction

5. Lack of Adequate Time.

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 Chapter 2
Literature Review

This section contains an overview of literature on the effect of Sales Promotion tool on
convenience goods purchase decision- A case study of working women in Chittagong.

2.1 Promotional mix

As one of the marketing mix elements, promotion includes all the activities directed to the
targeted consumers that lead to facilitate the process of contacting with them for the purpose of
formatting a sense of the importance of the commodity in achieving a high degree of
consumer’s satisfaction of their wishes and needs comparing with the competitors commodities

Promotion is one of the key factors in the marketing mix and has a key role in market success.
Promotion is used to ensure that consumers are aware of the products that the organization is
offering. The promotional mix is the combination of the different channels that can be used to
communicate the promotional message to the consumers. The channels to be used are;
advertising, direct marketing, public relations and publicity, personal selling, sponsorship and
sales promotion. One of most important of channels is sales promotion (Lewis and Nelson,
1999).

2.2 Sales promotion

Defining the term sales promotion is rather difficult for the presence of multiple relating
techniques and tactics and that sales promotion is a tool to achieve company’s marketing
communication objectives and an essential element in planning marketing. Sales promotion is a
short term strategy to derive demand and also and especial marketing offer which provides
more profit than what consumers receive from the sale position of a product and also has
sharper influence on sales (Pauwels, K. Hanssens, D. M., & Siddarth, s. 2002). A sales
promotion consists of techniques that are aimed at increasing sales in the short run, meaning
that they are mostly used for a short period of time. It offers control, and the costs can be much
lower than of advertising. The main characteristics of sales promotions are that they offer
better value for money and they try to cause responses immediately .This tool has the ability to
attract and keep loyal customers and is an excellent what to persuade them build viable link
with the organization and involves all motifs applied by the producer to persuade trade with
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members of a channel. Sales promotion has a strong ability to add value and to bring forward
future sales. For sales personnel promotional tools are used primarily for motivating staff or
supporting them in their selling roles. Brassington and Pettit provide a revised definition for
sales promotions: “a range of marketing techniques designed within a strategic marketing
framework to add extra value to a product or service over and above the ‘normal’ offering in
order to achieve specific sales and marketing objectives. This extra value may be a short-term
tactical nature or it may be part of a longer-term franchise-building program.”

1.3 Types of Sales Promotions

 Free Samples
Free samples refer to when customers are provided a sample of a product for free. A common
example is product samples given away free with magazines. An organization may use this
form of promotion as it can be effective in removing any monetary disincentive a customer
may have about purchasing and trailing a new product.

 Premium offers
Premium offers refer to when a bonus second product offered to a customer for purchasing a
product. This bonus may be given to the customer for free or at a substantial discount. An
example of a premium offer could be giving customers free video games with the purchase of a
video game console. An organization may use this approach to promotion as it gives customers
extra incentive for purchasing a product.

 Loyalty Programs
Loyalty programs offer customers some form of bonus or reward for spending money at a
specific store. Examples of loyalty programs are rewards cards used by many supermarkets or
frequent flyer point systems offered by airlines. An organization may use this form of
promotion in order to create customer loyalty and drive customers to make repeat purchases.

 Contests
Contests refer to competitions held by organizations associated with their products. An
example 77of a contest could be a chocolate bar company offering the chance to win a ‘Free
Bar’ inside the wrappers of their products. An organization may use this form of promotion to
offer additional incentive for consumers to purchases their product over similar competitive
products.

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  Coupons
Coupons are vouchers that allow consumers to purchase products at a discounted price. A
common example of coupons would be discount vouchers distributed to fast food chains. An
organization may use this form of promotion to advertise a new product.

 Discounts
Discounts refer to when products are temporarily offered at a lower price. Examples of a
discount would be clothing items marked at ‘15% off’ within a store. An organization may use
this form of promotion in order to increase sales and attract new customers.

 Rebates
Rebates refer to systems that allow customers to obtain a refund of some of the purchase price.
An example of a rebate would be a company that offer a partial refund when customers mail in
a proof of their purchase. This is referred to as a mail-in rebate. Rebates may also be offered
immediately at the time of purchase, this is an instant rebate. An organization may use this
form of promotion to capture consumers’ attention and offer an incentive to purchase their
product over similar competing products. Rebates are also advantageous for organizations
because in order to claim a rebate a customer needs to make an application in which they
provide personal details, this information can be used by the organizations for research in
consumer behavior.

 Point of purchase promotions

Point of purchase promotions refers to any promotions that take place within a store. Examples
of point of purchase promotions would be an in-store demonstrations or trial of product. Often
supermarkets will offer in store trials of products. In the case of free trials within a
supermarket, an organization may use this form of promotion because the customer feels a
sense of obligation to purchase the product after the free trial.

 Buy One Get One Free

Buy-one-get-one-free deals (aka BOGO) are among the well-used promotional methods.
Within business circles, they are often referred to as “self-liquidating” promotions because they
encourage the clearing of stock. Still, rarely do buy-one-get-one-free promotions cost a
business anything. In fact, they are designed to increase revenue. For example, say it costs a
business 10 cents to produce a loaf of bread. If that bread is sold for two for $1, that business
still makes a profit. In fact, profits soar because more bread is sold.

BOGO deals work with more than just product-based businesses; they also work for services.
Fitness studios, spas, salons, consultants, and trainers can offer BOGO deals on their classes or

6
trainings as a way of filling their schedules or getting new clients during the slow season. Since
service-based businesses are more time than product-value related, the only thing you’re losing
is time and during the off-season, a BOGO deal will be well worth the investment if it leads to
new customers in the long run.

2.4 Advantages of Sales Promotion

1. When compared with advertising and personal selling, sales promotional activities are less
expensive.

2. It enables both the dealers and the consumers to enjoy certain tangible benefits, e.g., free
samples, gifts, price reductions, etc.

3. Certain sales promotional activities also enable the consumers to gain knowledge. For
example, displays and demonstrations help them to, understand the product mechanism. The
customers can also raise their queries and get clarification immediately. Pamphlets distributed
to the consumers also provide useful information.

4. Advertising approaches the buyer indirectly and personal selling approaches the buyer
directly. Whereas sales promotional activities involve both direct and indirect approaches.

5. Sales promotion helps to supplement and support both advertising and personal selling. No
business can totally rely on advertising and personal selling alone.

6. Most of the sales promotional activities can be undertaken by the manufacturers themselves.
Distribution of free samples and gifts, money refund and coupon offers, demonstrations,
exchange of old for new and so on can be made by the manufacturers themselves. They may, at
the most, need the help of the dealers only.

7. The salesmen of a business cannot perform their work effectively without the use of sales
promotional tools like pamphlets, audiovisual aids, cell phones and pagers.

8. When compared with advertising, sales promotional activities can create better and quicker
impact. Free sample, gifts, demonstrations etc., can induce the consumers to act fast. One can,
therefore, say that sales promotion satisfies the ‘AIDA formula’ to a greater extent.

9. The business can have better control over its sales promotional activities. The financial
aspects, in particular, pertaining to sales promotion can be effectively managed. This may not
be possible in the case of advertisement and personal selling.

10. Measuring the effectiveness of sales promotion can be easy when compared to measuring
the effectiveness of advertising and personal selling.

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2.5 Disadvantages of sales promotion
1. The number of sales promotional activities to be performed are too many, distribution of free
samples and gifts, making such offers as price off and money refund, holding contests,
participating in trade fairs and exhibitions, display and demonstration of goods and so on.

2. Sales promotion, by itself, cannot produce results. It can only supplement advertising and
personal selling which are vital for a business.

3. Sales promotion is non-recurrent in nature. It cannot, therefore, be used continuously. The

marketer has to select the most appropriate tool of sales promotion and the same shall be
introduced at the right time.

4. It involves additional expenditure on the part of the business. Apart from the heavy
expenditure to be incurred on advertisement and personal selling, the business may have to
spend further on sales promotion. This leads to an overall increase in promotional costs.

5. The marketer cannot use any sales promotional tool at any time. Certain tools are to be used
only in the introduction stage of a product, while others will be used in the growth and maturity
stages. Indiscriminate use will not produce the expected results.

6. Another drawback of sales promotion is that there is a tendency on the part of all the
competitors to use the same method of sales promotion at the same time. Such an approach
may not benefit all. For example, if all the manufacturers of air-conditioners offer off season
discount (during winter), the consumer may only decide based on brand popularity.

7. Sales promotion is generally required to promote sales of those brands which are not so very
popular. Popular brands move fast in the market without much effort. Brand popularity can be
secured mainly by means of advertisement and personal selling.

8. Sales promotion offers such as price cut, discount, free gift etc., may sometimes create an
impression that these are being done to sell a poor quality product.

9. As far as the various types of discounts (cash discount, off-season discount and festival
discount etc.) are concerned, there is always a feeling that these are not real and the price
would have already been hiked.

10. As the sales promotional activities are short-lived, the results of such activities will also be
short-lived. The moment the various inducements offered by the marketer are withdrawn, the
demand is bound to fall.

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2.6 The Impact of Sales Promotions
Promotion is the component of the marketing mix strategy that emphasizes the use of various
communication tools to promote the value of your company, products or services. While much
of promotion is focused on long-term communication objectives, sales promotions have a
specific motive of creating immediate sales.

Attract Customers

Sales promotions are typically used as a price inducement to attract price-conscious buyers not
interested in products regular prices. This is common when companies want to build a
customer base, such as at a grand opening, when a competitor goes out of business, or in a
highly competitive industry. In some cases, sales promotions on one product, known as a
"price leader" or "loss leader," are used to get customers into the store so you can sell them
other, more profitable items.

Increased Revenue

Increasing revenue is a common goal for sales promotions. Often, sales promotions restrict
your profit potential, but they allow you to generate more revenue in the short run due to
increased sales volume. This also means more cash flow, which is why companies struggling
to meet near-term financial obligations often turn to discounts. To realize greater revenue, you
need more customers to buy more product at the reduced price (Moore, M., Kennedy, K. M.
and Fairhurst, A. 2003).

Price Orientation

One of the more risky or negative effects of sales promotions is that they can lead to a price
orientation amongst customers especially true if you overuse them or maintain discounts for an
extended period. Customers psychologically connect the promotion price with the value of the
product, and a price hike down the road may not work.

Inventory Reduction

This is Effective sales promotions lead to inventory reductions because customers buy more
products. In fact, this is why companies hold them regularly at the end of a buying season. For
example, when Halloween is over, you often see retailers discount decor and candy to make
room on the shelves for other products. While this often results in a gross loss on the excess
inventory, you at least get some revenue rather than throwing out expired or obsolete products.

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2.7 Convenience Goods
Convenience Goods are the goods for which people do not shop and which they prefer to buy
at convenient places and at satisfactory prices. In the case of convenience goods, the gain
resulting from shopping around to compare price and quality is not considered worth the extra
time, money and effort required. The consumer is willing to accept any of several substitutes
and thus he will buy the one which is most accessible. In other words, the convenience goods
may be defined as those goods for which the probable gain from making price and quality
comparisons is thought to be small relative to the consumers’ appraisal of searching costs in
terms of time, money and effort (Shimp, 2003).

2.8 Types of Convenience Goods: Convenience goods can be

classified into four types:
(1) Staples—Staple convenience goods are those which the consumer knows he wants before
he sees them in the store and which he plans to buy as soon as possible and with a minimum of
efforts. Such goods are usually bought without much thought because the consumer knows that
he must have the goods as soon as their stock is exhausted. Food and drug items are the
examples of staples. When the housewife runs short with salt or pepper, she makes written or
mental note to buy a new supply when time will permit. Branding plays an important part in
the marketing of staples since it helps the consumer reduce his searching costs.

(2) Impulse Goods—Impulse goods are those convenience goods which are bought on the
spur of the moment. They are bought without previous planning. They are such types of goods
for which the want arises only after the consumer sees the item in the store. she buys it
immediately following his impulse. They are bought at the first sight, because they appeal to
the consumer at that moment. Since the consumer buys it on the spur of the moment, there is
no thought of searching further. A cine-magazine may appeal to a people when he just sees a
picture of a fair-looking actress or any vamp girl and, then and then, he plans to purchase a
copy of it. Other examples of impulse goods are balloons, toys, candy, fruits, gifts, cut-flowers,
drinks, magazines and the like. The impulse goods must be displayed in such places where they
can been seen by the buyers when in a buying mood.

(3) Emergency Goods—There is no particular category of goods to be designated as

emergency goods. Any article can become emergency goods if the need for them arises
suddenly. They are purchased when the need is urgent. They are bought regardless of price
because the cost of searching is too high. Examples might be umbrellas in rainy weather or
storm, condoms, drugs, overshoes, sweaters or motor tires. Take for example, if a motorist
finds a tire of his motor punched at Sydney on the way to Perth, he will need a motor tire
urgently. The stranded motorist may buy a tire for $120 (say) which normally sells for $100.

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He buys at this price because the alternative may be a long, tiring search, and even perhaps a
towing charge. So, for him the motor tire is an emergency goods.

(4) Delivered Goods—The consumer goods which are usually delivered at the doorstep of the
consumers are called delivered goods. Milk, newspapers, ice, kerosene are examples. They are
often expensive when delivered at the doorstep but this added cost is deemed worthwhile by
many consumers because of the convenience.

2.9 Consumer behavior and decision making

Marketing begins with understanding the need of a consumer as those acts of individual who
are directly involved in obtaining, using and disposing of economic goods and services
including the decision processes that precede and determine this acts. Therefore, knowledge of
consumer behavior is an indispensable input to forming any promotional mix. Consumer
behavior is defined as the behavior that consumers display in seeking, purchasing, using,
evaluating and disposing of products and services that they expect will satisfy their personal
needs. (Shiffman et al., 2001). Solomon, Bamossy & Hogg (2010) defines ―consumer
behavior as the study of the processes involved when individual or groups select, purchase, use
or dispose products, services, ideas or experiences to satisfy need and desires‖. (Roger D.
Blackwell et al.) State that consumer behavior as activities people undertake when obtaining,
consuming, and disposing of products and services. Consumer behavior is the study of how
individuals make decisions to spend their available resources (money, time and effort) on
products and services (Shiffman et al., 2001).

Moreover, it is the study of several influencing factors such as what, why, how, when and
where does a consumer make a purchase decision (Shiffman et al., 2001). Consumer behavior
is defined as the ―study of buying units and the exchange processes involved in acquiring,
consuming, and disposing of goods, services, experiences, and ideas‖ (Michael, 2000).

The above mentioned definitions of consumer behavior reveal, the exchange process, which
begins with the acquisition phase, then moves to the consumption phase and ends with the
disposition phase. This research aims to study the factors that influence the acquisition choice
of consumers when they decide to acquire a certain product or service. It is very vital for the
businesses to understand the consumer behavior; it is a key factor that affects consumers
‘purchasing decision. According to Bill Mc Dermott, (SAP America, Inc) ―Starting with what
your customers need and want, rather than what you have to sell, is the key to sales success‖.
Today‘s businesses place greatest importance on processing and understanding consumer
behavior as it provides numerous benefits. The importance of understanding the consumer is
found in the definition of marketing as a human activity directed at satisfying needs and

11
Wants through human exchange process. (Shimp, 2003). To understand the consumer behavior
several researchers have examined the classes of a variable that influences the consumer
behavior; they focus on understanding the nature of each variable. Some of the variables that
influence the consumer behavior are the stimulus variables such as advertisement, sales
promotion, products, that exist in both the individual‘s external and internal environment
(Loudon & AJ, 1993) These variables generate sensory inputs to consumers. Response
variables are the resulting mental / physical reactions of individuals who are influenced by
stimulus variables. Moreover, there are third kind of variables called intervening variables
which literally intervenes between stimulus variable and response variables. These variables
act to influence or magnify the effect of stimulus variables on response variables (Loudon &
AJ, 1993).The scope of this research is limited to the study of consumer behavior in regard to
the stimulus variables such as sales promotion. Several studies have revealed that sales
promotion influences the consumer behavior. Or in other words, sales promotion influences the
consumer buying decisions.

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 Chapter 3
Finding & Analysis

3.1 Frequency
Is the number of occurrences of a repeating event per unit of time .It is also referred to as
temporal frequency, which emphasizes the contrast to spatial frequency and angular frequency.

Descriptive Characteristics Frequency Percentage

Marital status: Married 38 63.3

Single 22 36.7
Respondent Lives in: Urban Area 51 85
Rural Area 9 15
Age: Less than 20 years 1 1.7
20 years to less than 30years 20 33.3
30 years to less than 40 years 29 48.3
40 years to less than 50 years 8 13.3
50 years to less than 60 years 2 3.3
Education: HSC Completed 2 3.3
Under Graduation 22 36.7
Graduation 33 55
Post-Graduation 3 5
Occupation: Govt. Organization 19 31.7
Private Company 16 26.7
Other 25 41.6
Family Income(monthly)
Less than taka 50,000 18 30
Taka 50,000 to less than taka 70,000 20 33.3
Taka7 0,000 to less than taka 90,000 11 18.3
13
 Taka 90,000 to less than taka 9 15
1,10,000
Above Taka 1,10,000 2 3.3
Analysis:

Based on the survey, all are female respondents. . Here 85 percent lives in Urban Area and 15
percent lives in Rural Area. 3.3 percent respondents are HSC Completed, 36.7 percent
respondents are Under Graduation, and 55 percent respondents are Graduate and 5 percent
Postgraduate. The age distributions of the respondents were: (1) Less than 20 years 1.7 percent;
(2) 20 years to less than 30 years 33.3 percent; (3) 30 years to less than 40 years 48.3 percent;
(4) 40 years to less than 50 years 13.3 percent; and (5) 50 years to less than 60 years 3.3
percent. Also here 38 percent married & 22 percent single.

3.2 Descriptive Statistics

Descriptive statistics are brief descriptive coefficients that summarize a given data set, which
can be either a representation of the entire population or a sample of it. Descriptive statistics
are broken down into measures of central tendency and measures of variability or spread.

Descriptive Statistics

Minimu Std. Rank

N m Maximum Mean Deviation
Attitude towards Price 60 2.50 4.50 3.6167 .51300 3
Discount
Attitude towards Coupons 60 1.63 4.50 3.4333 .61161 5
Discount
Attitude towards Free 60 1.63 4.50 3.3520 .59370 4
Sample
Attitude towards Buy-one- 60 2.50 5.00 3.4333 .45720 2
get-one-free (B1G1F)
Attitude towards Buying 60 2.92 4.54 3.6961 .37088 1
Behavior
Valid N (list wise) 60

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Analysis:
All constructs were assessed through a 5-point-Likert-type scale ranging from “Strongly
Agree” (5) to “Strongly Disagree” (1).

Based on Table, Attitude towards Buying Behavior has the highest mean among all the
constructs at 3.6961, this shows that the average level of agreement on Attitude towards
Buying Behavior are more towards “Agree”. On the other hand, the lowest mean among all the
constructs is Attitude towards Free Sample at 3.3520, which indicate that average responses on
Attitude towards Free Sample are slightly more toward “Agree”. The remaining constructs
have similar level of agreement in which the mean score are slightly towards “Agree”. Overall,
the average levels of agreement for all the constructs are more on “Agree”.

3.3 Reliability
The ability of an apparatus, machine or system to consistently perform its intended or required
function or mission on demand and without degradation or failure

Name of Variable Cronbach’s Alpha N of Items

Attitude towards Price Discount .684 8

Attitude towards Coupons .776 8

Discount
Attitude towards Free Sample .730 8

Attitude towards Buy-one-get- .568 8

one-free(B1G1F)
Attitude towards Buying .524 13
Behavior
Total 0.868 45

Analysis:
15
According to the given questionnaire I found 5 major objectives regarding Attitude towards
Price Discount, Attitude towards Coupons Discount, Attitude towards Free Sample, Attitude
towards Buy-one-get-one-free (B1G1F) and Attitude towards Buying Behavior based on those
objectives. I find out total of their reliability Cornbrash’s Alpha value is 0.868; according to
rule is its fit because the values cross 0.65.

16
 Chapter 4
Problems & Recommendation

Problems:
The short-term motive of sales promotions can work against the typical long-term goals of companies,
including creating customer loyalty. Excessive price discounting trains buyers to focus on the low price as
the source of value with a particular business or good. After customers get used to certain discounted price
points, it is difficult to get them to pay regular price. With certain types of sales promotions and discounts, it
can be difficult to control the nature and timing of purchasing. Even with an expiration date on a promotion,
customers may delay coupon use until the final moments, which delays revenue. Again sale promotion for a
long time it hampers in brand’s goodwill Alienating customers with incorrect prices at the register and the
costs of administering certain types of promotions also are concerns. But in our country most of the working
women think that if a non-brand or less popular brand gives offers or discounts they think that the product
quality may not be good again if the branded product give it to them they increase the buy of the product.

Recommendation:
To solve problems that are arise because of sales promotion companies should give a proper reason of their
offer. And working women in our country has less time to do house hold works marketers can utilize that
can give more offer to readymade products which save times of the customer. Sales promotion should be
given for short time. Working women in our country mostly influenced by well reputed brands, Brands
value has a great impact in their mind that is why marketers should rethink about improving Brand image.

Chapter 5
Conclusion
Marketers spend an enormous amount of time finding out what consumers really want and what promotions
will be most effective. Given the very large expenditures allocated to sales promotion tools, understanding
what strategy to use for a given promotional cost/value remains important. After completing these report I
17
have come to know that various kinds of sales promotion are followed by marketers. From these it is clearly
stated that various coupons, discounts and offers effect on consumer buying process. People usually want to
buy those products from which they get discounts and all other offers that is why to do these things better
market research is mandatory and working women’s are more influenced by these offers so that it has a
great impact on them. It also saves money but sometimes people want to buy previous brands which they
buy before that is why some promotion is not so effective it depends how people value that Brand.

18
 References
Ailawadi, Kusum, & Neslin, S. (1998). the Effect of Promotion on Consumption: Buying More and
Consuming it Faster. Journal of Marketing Research ,

Alvarez, B. A., and Casielles, R. V. (2005). Consumer evaluation of sales promotion: the effect on brand
choice. European Journal of Marketing.

Blattberg, C., R., & Neslin, S. A. (1990). Sales Promotion, Concepts, Methods
and Strategies. Englewood Cliffs, New Jersey: Prentice Hall.

Dang, Jha, P., Koshy, A., & Sharma, D. (2005). An Empirical Analysis of Different Types of Consumers
Promotions in India Market. Asian Journal of Marketing.

Dekimpe, M. G., Hanssens, D. M., & Risso, J. S. (1999). Long run effects of price
promotion in scanner markets. journal of econometrics .

Economic Times, Sunday, June 15, 2003. Fill, C. (1995). Marketing Communications:
frameworks, theories, and applications. London: Prentice Hall

Hanssens, Parsons, L. J., & Schultz, R. L. (2001). Market Response Models, 2nd Edition.
Boston: Kulwer Academic Publisher.

Jiang, P. (2004). Customer intention to return online: price perception, attribute-level

performance, and satisfaction unfolding over time. European Journal of Marketing,

Kotler. (2002). Marketing Management. Prentice Hall Publication.

Kotler P. and Armstrong G. (2002). Principles of Marketing, Ninth edition, Prentice-

Hall.

Moore, M., Kennedy, K. M. and Fairhurst, A. (2003). Cross-cultural equivalence of price

perceptions between US and Polish consumers. International Journal of Retail and Distribution
Management,

Pauwels, K., Hanssens, D. M., & Siddarth, s. (2002). The Long Term Effects of Price
Promotions on Category Incidence, Brand Choice and Purchase Quantity . Jornal of Marketing .

Pawels, K., Srinivasan, S., Silva-Risso, J., & Hanssen, D. M. (2003). New
Products,Sales Promotions and Firm Value, with Application to the Automobile Industry.
Journal of Marketing

19
 Appendix

Questionnaire On the effect of Sales Promotional tool on convenience goods purchase

decision -----A case study of working women in Chittagong

Survey Instrument

Instructions:
The estimated time to complete this questionnaire is about 5 minutes.
Please be as honest as possible with your answers. Please be known that there is no right or wrong
answer.
Your participation in this study is confidential and your responses will remain secret.

Respondent’ Name :
Address :
Occupation :
Interviewer’ Name : Code:

Marital Status : 1.  Married 2.  Single

Lives in : 1.  Urban Area 2.  Rural Area
Age : 1.  Less than 20 years
  20 years to less than 30 years
 30 years to less than 40 years
 40 years to less than 50 years
 50 years to less than 60 years
 60 years or above

Education :1.  HSC Completed

 under Graduation Completed (BA, BSc, BBA, MBBS etc.)
 Graduation Completed (MA, MSc, MBA, MDS etc.)
 Post Graduation Completed (MPhil, PhD etc.)
 Other (Please Specify:

Occupation: 1  Govt. Organization

 Private Company
 Other
Family Income(monthly):1.  Less than taka 50,000
20
  Taka 50,000 to less than taka 70,000
 Taka7 0,000 to less than taka 90,000
 Taka 90,000 to less than taka 1,10,000
   Above Taka 1,10,000

21
Following is a list of different questions related to the impact on promotional tool on
consumer buying behavior on convenience products. Choose any number from 1 to 5 by
Tick the appropriate one that applies to you for each statement.

Attitude towards Price Discount: (Scaling from “Strongly disagree” to “Strongly agree” on a 5-point scale):
1 = Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree
No Statement SD D M
s A SA
01 If a brand offers price discount that could be a reason for me to buy it. 1 2 3 4 5

02 When I buy a brand that offers price discount, I feel I am getting a good buy. 1 2 3 4 5

03 A price discount has allowed me to buy another brand which I do not regularly buy. 1 2 3 4 5

04 I usually buy the same brand even when I have a price discount on the other brands. 1 2 3 4 5

05 I have favorite brands, but most of time I buy a brand that offers price discounts. 1 2 3 4 5

06 A price discount has allowed me to buy the products earlier than planned. 1 2 3 4 5

07 A price discount has allowed me to buy more quantities of the same product. 1 2 3 4 5

08 Compared to most people, I am more likely to buy a brand that offers price discount. 1 2 3 4 5

Attitude towards Coupons Discount: (Scaling from “Strongly disagree” to “Strongly agree” on a
5-point scale):
1 = Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree.
No Statement SD D M
s A SA
01 If a brand offers coupons discount that could be a reason for me to buy it. 1 2 3 4 5

02 When I buy a brand that offers coupons discount, I feel I am getting a good buy. 1 2 3 4 5

03 A coupons discount has allowed me to buy another brand which I do not regularly 1 2 3 4 5
buy.
04 I usually buy the same brand even when I have a coupons discount on the other 1 2 3 4 5
brands.

05 I have favorite brands, but most of time I buy a brand that offers coupons discount. 1 2 3 4 5

06 A coupons discount has allowed me to buy the products earlier than planned. 1 2 3 4 5

07 A coupons discount has allowed me to buy more quantities of the same product. 1 2 3 4 5

08 Compared to most people, I am more likely to buy a brand that offers coupons 1 2 3 4 5
discount.

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 Attitude towards Free Sample: (Scaling from “Strongly disagree” to “Strongly
agree” on a 5-point scale):
1 = Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree.
No Statement SD D M A SA
s
01 If brands offers free sample that could be a reason for me to buy it. 1 2 3 4 5

02 When I buy a brand that offers free sample, I feel I am getting a good buy. 1 2 3 4 5

03 A free sample has allowed me to buy another brand which I do not regularly buy. 1 2 3 4 5

04 I usually buy the same brand even when I have a free sample on the other brands. 1 2 3 4 5

05 I have favorite brands, but most of time I buy a brand that offers free sample. 1 2 3 4 5

06 A free sample has allowed me to buy the products earlier than planned. 1 2 3 4 5

07 A free sample has allowed me to buy more quantities of the same product. 1 2 3 4 5

08 Compared to most people, I am more likely to buy a brand that offers free sample. 1 2 3 4 5

Attitude towards Buy-one-get-one-free (B1G1F): (Scaling from “Strongly disagree” to “Strongly

agree” on a 5-point scale):
1 = Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree
No Statement SD D M A SA
s
01 If a brand offers B1G1F that could be a reason for me to buy it. 1 2 3 4 5

02 When I buy a brand that offers B1G1F, I feel I am getting a good buy. 1 2 3 4 5

03 A B1G1F has allowed me to buy another brand which I do not regularly buy. 1 2 3 4 5

04 I usually buy the same brand even when I have a B1G1F on the other brands. 1 2 3 4 5

05 I have favorite brands, but most of time I buy a brand that offers B1G1F. 1 2 3 4 5

06 A B1G1F has allowed me to buy the products earlier than planned. 1 2 3 4 5

07 A B1G1F has allowed me to buy more quantities of the same product. 1 2 3 4 5

08 Compared to most people, I am more likely to buy a brand that offers B1G1F. 1 2 3 4 5

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Attitude towards Buying Behavior: (Scaling from “Strongly disagree” to “Strongly
agree” on a 5-point scale):
1 = Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree
No Statement SD D M
s A SA
01 Once I find a product I like, I buy it regularly. 1 2 3 4 5

02 This In general, I try to get the best overall quality. 1 2 3 4 5

03 I usually buy well-known brands. 1 2 3 4 5

04 I prefer buy the best-selling brands. 1 2 3 4 5

05 It is funny to buy something new and exciting. 1 2 3 4 5

06 I look very carefully to find the best value for money. 1 2 3 4 5

07 I buy as much as possible at sale prices. 1 2 3 4 5

08 I usually buy the lower price products. 1 2 3 4 5

09 To get variety, I shop in different stores and buy different brands. 1 2 3 4 5

10 I should spend more time deciding on the products and brands I buy. 1 2 3 4 5

11 I normally shop quickly, buying the first product or brand I find 1 2 3 4 5

that seems good enough.
12 The more I learn about products, the harder it seems to choose 1 2 3 4 5
the best.
13 I carefully watch how much I spend. 1 2 3 4 5

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