Evaluating the Effect of Consumer Sales Promotions on Brand Loyal and Brand Switching Segments

Abstract

Sales promotions are generally looked at as tools that undermines the brand; yet a tool that is necessarily meant to speed up sales. Consumer sales promotion take up a large share of the total marketing expenditure despite which it remains an area that still attracts attention as an essential component of the promotion mix meant to increase short term sales. It is therefore not surprising that most of the marketers resort to sales promotions to attract the competitor's market share. The present paper reports the results of the effects of consumer sales promotions on 427 consumers. This study has attempted to explore the effect of consumer sales promotions on loyal and non-loyal consumers in two Fast Moving Consumer Goods- washing powders and shampoos. Consumers were classified into two categories by their degree of loyalty towards the brand: brand loyal consumers and non-loyal consumers (also known as brand switchers). The study found that consumer sales promotions have more influence on the brand switchers as compared to the loyal consumers. Also, among the various forms of consumer sales promotions, free gifts have more influence on the brand switching behaviour of consumers. Further, it was found that economic status was not a defining factor effecting consumer's brand loyalty.