Sales promotion effectiveness: the impact of consumer differences at an ethnic‐group level

Abstract

PurposeAims to examine the proposition that consumer sales promotions are more effective when they provide benefits that are congruent with those of the promoted product. This proposition is considered at the ethnic‐group level (i.e. do differences in cultural values at this level have an impact on sales promotion effectiveness?).Design/methodology/approachA quasi‐experimental design is used to test a series of hypotheses based on a sample of Anglo‐Australians and Chinese‐Australians. The main experiment is informed by the results of two pretests.FindingsFirst, there are significant differences in consumer cultural values at an ethnic‐group level. Second, despite these differences, ethnicity does not have a significant impact on responses to sales promotions. Third, the expected congruency effects between products and promotion types are not found.Research limitations/implicationsSome of the detailed results match those reported in previous studies, but there are important differences too.Practical implicationsThere is a need to be aware of differing cultural values at an ethnic‐group level. Notwithstanding this inference, the second finding suggests that there continues to be scope for using standardised strategies when promoting to different ethnic groups. Finally, considerable caution should be exercised when planning promotion strategies around hoped‐for congruency effects.Originality/valueNew light is cast on the relationship between consumer differences at an ethnic‐group level and the effectiveness of various types of sales promotion for utilitarian and hedonic products.