The impact of Sales promotional tools on consumer buying Behaviour

Presented By: Rabia Sana 48653

Presented to:Dr,Manzoor Berohi
 Abstract
 The main objective of this research was to investigate the influence of sales
promotion and physical surroundings that is situational factor on consumer buying
behavior. The research found that there was no significant relationship between
free samples, coupons and buying behavior. On the other hand price discount,
buy-one-get-one-free, physical surrounding has a significant relationship with
buying behavior. The results of regression analysis show that price discount, buy-
one-get-one-free and physical surroundings explained 45.7% variance in buying
behavior of the respondents. The results of this research would assist marketers to
understand the best kind of promotion tool that significantly affect buying behavior
of the consumers. The marketers can develop their business plan more effectively
through the result of this study and these plans help businessmen andmarketers to
gain competitive advantage over their competitors and enable the businesses to
earn maximum profit.
 Key Words: Buy-One-Get-One-Free, Coupons, Free Sample, Physical Surroundings
and Price Discount.
 Introduction
 Consumer’s specified purchasing behaviour as one of the major contributions that marketing leaders
use to forecast future sales and to regulate how the actions they take will effect consumers’ buying
behaviour.
 Sales promotion is one of the best tools to appeal new patrons and recollect old ones, including
marketing actions by adding extra cost to the products for a limited period of time in order to inspire
consumer purchases.
 The purpose of this research is to identify the influence of different sales promotional tools such as
discounts, coupons, and BOGO scheme on consumer buying behaviour which will further helps the
businessmen of Pakistan to encounter which changes are needed in the sales promotional activities
that enhances the perception of the customers to buy the particular products during the sales
promotion.
Introduction cont…
According to Srinivasan and Anderson (1998) in these days businesses areconstantly
looking for marketing tactics to increase effectiveness and efficiency of their tasks
of business. For a business to advertise their brand and make it a dominant brand,
marketing and sale promotion looks to be extremely effective (De Chernatony and
McDonald, 2003)
 Sales promotion has direct effect on the consumers purchase buying behavior,
which is an action focus-marketing event (Blattberg and Neslin, 1990). Totten and
Block (1994) that stated the term sales promotion refers to several types of selling
incentives and methods which aim to yield the immediate sales effects.
 Three kinds of methods could be used by marketers to increase sales, first one is
the promotion which is used to target consumers is called consumer’s sales
promotion (Price Deals, Price Pack Deals, Coupons, Samples, Sent of Deals and
Loyalty reward programs).
 Introduction Cont.,
 So, there is a need to identify the influence of sales promotional tools on consumer buying
behaviour which will further strengthen the acknowledgment of marketer in planning the sales
promotional activities.
 Preceding marketing research, focuses on how sales promotion influences the conduct of
consumers, predominantly their buying behaviour.
 Most studies accomplish that sales promotion can significantly influence the comportment of
consumers and their purchasing decisions, although the consequence of its various
components might be different.
 Without sales promotion a product is difficult to reach its maximum sale demands.
 Whenever the sales promotions increases automatically the buying behaviour of people
changes.
 Statement of the problem

The purpose of this research is to investigate the influence of sales

promotional tools such as: price discount, coupon discount and BOGO
scheme on the buying behaviour of the customers.
 Objective of the research

The main objective of this research is to identify the influence of sales promotional
tools on consumer buying behaviour.
 Research Questions

 1. What is the influence of price discount on consumer buying behaviour?

 2. What is the influence of coupon discount on consumer buying behaviour?
 3. What is the influence of “Buy-one-get-one-free” on consumer buying
behaviour?
 Significance of the study

 This research is beneficial in terms of the society as it will help the businessmen of
Pakistan in formulating and implementing the effective sales promotional strategies.
 It will provide the companies a roadmap of how to retain its current customers along
with attracting the potential customers.
 In this way it will create a competitive advantage for the companies over their
competitors it will also provide an opportunity for the new businesses to get more
detailed information about the sales promotional tools and how it affects the
consumer buying behaviour which further enables them to penetrate into the market
with affective sales promotional strategies.
 Literature view
No Authors Year Concept

1 Subhojit Banerjee 2017 To classifying sales promotion based on their utility and
relatedness to the product to which they are bundled by
using discounts and freebies for sales promotion
strategy for a long time.
2 Aurangzeb Mughal Asif Mehmood 2014 To study the impact of different promotion techniques,
Ammar Mohi-ud-deen purchase intension, such as “Buy-One-Get-One-Free
Bilal Ahmed (BOGO)” which can affect the consumer buying
behaviour.
3 K.Jayaraman, Mohammed Iranmahesh, Manjeet 2013 To study the insight of some drivers that influence the
Dashini Kaur and Hasnah Haron. consumers purchase preferences towards the “Buy-One-
Get-One-Free (BOGO)” promotion scheme within the
context of Malaysia
4 SHU LI 2007 To explore the relationship between stock-up
YAN SUN characteristic and frame preference and the influence of
YONG WANG the consumable nature of goods on frame preference.
Theoretical Framework

Discount

Consumer
buying behavior
Coupons

Buy-one-
get-one-free
 Research questions to Hypothesis in one glance

What is the influence of What is the influence of What is the influence of

price discount on coupon discount on “Buy-one-get-one-free”
consumer buying consumer buying on consumer buying
behaviour? behaviour? behaviour?

H1) There is a significant H2) There is a significant H3) There is a significant

positive relationship between positive relationship between positive relationship between
Price Discount and consumer Coupon Discount and Buy One Get One Free and
Buying Behaviour. consumer Buying Behaviour. consumer Buying Behaviour.
 Scales & Constructs Adopted/Adapted
No Scale Constructs No. of Author
items
1. Buying Behaviour 14 Bakewell, C., and
Mitchell, V. W.
(2003)
2. Sales promotional Price discounts 8 Bakewell, C., and
tools Mitchell, V. W.
(2003)
3. Coupon discounts 8 Bakewell, C., and
Mitchell, V. W.
(2003)
4. Buy-one-get-one-free 8 Bakewell, C., and
Mitchell, V. W.
 Methodology Proposed
Approach Type of study Strategy Population Sample size

Survey Buitems students

Deductive Descriptive (Questionnaire) (City Campus) 3% of 1000
(20-25 years)

INFERENCE VIA SOFTWARE ACADEMIC FORMAT

Multiple Regression SPSS APA 6th Edition

Results and findings

Reliability
Statistics
Cronbach'sAlphaa Cronbach's Alpha Based on N of Items
Standardized Itemsa

.739 .701 37
The Mean and Standard Deviations

Mean Standard Deviation

Price Discount 3.49 0.79

Coupon Discount 3.36 0.77

Buy one get one free 3.64 0.76

Buying Behavior 3.51 0.72

 Correlation
PD CD BOGOF BB

PD 1

CD 0.533 1

BOGOF 0.340 0.314 1

BB 0.612 0.452 0.501 1

Regression Analysis and Hypothesis

Ind. Variable Standardize β P Value R2 F P Value

PD .610 .000 .471 106.516 .000

CD .452 .000 .225 50.756 .000

BOGOF .501 .000 .342 56.881 .000

 Result

 • It is observed from the regression result that the buying behavior is influenced 47% by price
discount. Price discount verified to be the significant predictor of buying behavior of customer.
Β=.610, p<.05. Thus, the regression result supports H1 i.e., Price Discount has an effect on consumer
buying behaviour and confirms the significant relationship between Price Discount and Consumer
Buying Behaviour.

 •It is observed from the regression result that the buying behaviour is influenced 22% by Coupon
discount. Coupon discount verified to be the significant predictor of buying behaviour of customer.
Β=.452, p<.05. Thus, the regression result supports H2 i.e., Coupon Discount has an effect on
consumer buying behaviour and confirms the significant relationship between Coupon Discount and
Consumer Buying Behaviour.
 Result

 • It is observed from the regression result that the buying behaviour is influenced 34% by Buy one
get one free. Buy one get one free verified to be the significant predictor of buying behaviour of
customer. Β=.501, p<.05. Thus, the regression result supports H3 i.e., Buy one get one free has an
effect on consumer buying behaviour and confirms the significant relationship between Buy one get
one free and Consumer Buying Behaviour.
 Conclusions and recommendation
 Limitations
 The data of this research has been collected only from the students of BUITEMS University, and it has
not been collected from the other universities of the Quetta city. Therefore the result of this research
cannot be generalized on the overall buying behavior of the students belongs to the other universities of
Quetta.
 More variables can also be used in the research in order to analyze their influence on the buying
behavior of the customers, due to the shortage of time; the study of this research has focused only on
three variables such as Price discount, Coupon discount and Buy-one-get-one-free.
 The current study of this research focuses only on the students of city campus while ignoring the
students of Takatu campus of the BUITEMS University.
 Conclusion

 The results of this research has revealed that among the given independent
variables of the sales promotional tools, the students of BUITEMS focuses more on
the price discount while purchasing any product.
 Buying behavior of the customers has influenced 47% by price discount, 22% by
coupon discount and 34% by buy-one-get-one-free. While buying any products,
consumers concerned more about the price discount rather than the coupon or buy-
one-get-one-free among the sales promotional tools.
 Recommendations
 From the current study, it has been recommended for the marketers to give more
privilege to the price discount for the purpose of increasing their sales as it is the most
effective promotional tool.
 This sort of study can be further used by marketers for making effective sale
promotional strategies by focusing more on the price discount to enhance their
profitability.
 For drawing more attention of consumers’ price discount should be focused as one of
the most effective sales promotional tool.
Thank You