Monday, June 17, 2019

How does the promotion strategy effect the customer purchase Literature review

How does the promotion strategy effect the client purchase - books review ExampleMela, Gupta and Lehmann (1997) discussed the long-term opposition of promotions on differentiate performance. Even though, this article takes dependent variable as brand performance instead of customer purchase, it has been chosen because brand performance is, after all, a determinant of customer purchase. Mela, Gupta and Lehmann (1997) investigated the long-term impact of advertising and promotion on customers brand choice manner. Customers brand choice behavior depended upon two decisive factors. i.Is there any response of customers on the variables of marketing mix such as product, price, place and promotion?ii.If so, are these changes related to the promotional policies of retailers and manufacturers?The results of the study revealed that in long run, price promotion makes both types of customers loyal and non-loyal. In admittance to that, Mela, Gupta and Lehmann (1997) concluded that advertisi ng has good affect on consumers brand choice behavior whereas promotions have bad affect on the brand choice behavior of consumers (Mela, Gupta and Lehmann, 1997). Personalization, also known as customization, is the popular concept of marketing. It has become a necessity for many organizations. Savadkoohi (2012) conducted a study to investigate advantages and disadvantages of customization for companies as well as customers. The paper emphasized upon the personalized online promotions and its impact on consumers buying behavior. Savadkoohi (2012) concluded that the successful online personalization strategies can increase the buying behavior of the customers and thereby, can affect the companies profitability. Nowadays, online marketing, change and promotion have become very common. Companies utilize the platform of internet in set up to attract more customers. Ye, Haohong and Fei (2010) conducted a study to investigate the impact of sales promotion on C2C online shopping behavio r of consumer. In order to examine the relationship between these variables, Ye, Haohong and Fei (2010) used an empirical method. The results of the study revealed that online promotion has direct influence on the attitude of customers but the intention of purchase is not significant. However, it might help in building a brand perception in estimations of customers. Therefore, online promotion can be effective in increasing the brand awareness (Ye, Haohong and Fei, 2010). Modi and Jhulka (2012) conducted a study in order to measure the impact of promotional schemes on the buying behavior of consumers. Modi and Jhulka (2012) examined five types of promotional schemes, which included Festival Season Offers, Special Gift, Exchange Offer, Product Warranties and Contest Prizes. A questionnaire was constructed in order to perform the research and gather the relevant data. Chi square test was performed to test the null hypotheses. The results of the study revealed that promotional scheme s can be proved as effective tool to organizations for selling their products. The authors further stated that promotional schemes can be very useful especially in the car purchasing conclusion of consumers (Modi and Jhulka, 2012). Costa, Epperson, Huang and McKissick (2002) conducted a study to determine the impact of advertising and promotion on the scanned purchases of Vidalia onion. Another aim of the study was to examine the expected return on use of goods and services of promotion. In order to gather the data of Vidalia onion, scanned copies from the supermarket were collected. Vidalia Onion Marketing Order generates the promotion expenditure. In order to carry out the research, Costa, Epperson, Huang and McKissick (2002) utilized error voice model for 10 different markets for the period of 1996 to 2001. Results of the study revealed that advertising and promotion expenditures influenced the demand of Vidalia onion substantially over the research period. Keeping in mind the seasonality of Vidalia onion, more promotional activities can be done in order to increase the

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