Research Methodology: The Impact Of Sales Promotion Schemes On Purchase Decisions

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Question :

Write the notes on the topic "The Impact of Sales promotion Schemes on purchase Decisions".

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Answer :


Sales promotion is considered the most important in the department of promotional mix. There are certain significant elements in the promotional mix including direct marketing, advertising, personal selling, and  maintaining high public relations. All these elements together integrates the sales promotion that certainly uses modern trends like media and non-media marketing communications in fulfilling the growing consumer demand. The promotional scheme of sales stimulates the market demand and help in improving the product availability. 

The different types of sales schemes are contests,coupons, point of purchase displays, premiums, prizes, freebies, discounts and more. Sales promotions thereby monitors the attitudes of consumers toward products targeting focused group of consumer are called consumer sales promotions. The Research attempts to examine the impact of sales promotion schemes and benefits on consumer purchase decisions. 

Literature review 

Previous research review

Sales promotions helps to monitor the behaviour of consumers toward any particular or set of  products attracting focused group of  consumer called as consumer sales promotions. In and around mid 90s, the world did not reach its pinnacle of advancement unlike the contemporary world (Lund and Smith, 2015). Advertisement in those era relied on retailers and wholesalers  for there was no possibility of demand of goods depended on the interests of limited section of people in different area or countries that varied from place to place. The access to information regarding new launched products was limited until when the customer is visiting the market. Consumer's buying behaviour depends largely on the seller's motivation and strategy towards selling of product (Lund and Smith, 2015). Television was one of the strategic way that the large companies could afford to advertise that allowed the elitist and middle class people to gain information (Obeid, 2014). However, the marketer and seller played an important role in advertisements and promotional process. 

Research gap

The gap in the previous research is that it gives little focus on the consumer buying behavior. It is studied that even consumer’s were tough to be  influenced on its pre purchase of a product and that triggered the necessity of developing promotional schemes. Sales promotion in the mid 90s had lesser or limited effect on consumer buying behavior. On the other hand, consumer himself became an useful way in advertising new product, for example, when a particular good is purchased, then the individual shares the usefulness and value of the product to others that allow other section of people to purchase the similar. The diverse ways of sales promotion has gained success in understanding consumer behaviour and attitude towards a particular product while fostering the existing market structure. 

Present research review 

Sales promotions are increasing with the demands and needs of the customers. There has been rising competition and initiation of major developments taking place in the different sectors of the world. The business sector has been affected mainly due to  globalization and technological advancements that has made competition rigid and complex (Amara and Kchaou, 2014).  With the varied product range of different business units, provides range of choices to the consumers. 

Thereby, it is important to be definite about one’s product manufacturing and packaging in attracting host of consumers. Therefore, sales promotion is granted as an unique tool that integrates marketing effort using advertising to attract consumers. In contemporary time, sponsorship marketing has been initiated by different business companies that help to promote the brand and it product during a certain event (Yazdanifard,  2015). The major objective of the sales promotion is to stimulate consumers in purchasing a particular product or service in a negotiable or lower price.

Research objective 

The research aims at assessing the impact of sales promotion schemes on consumer purchase decisions. It emphasizes on the research questionnaire in presenting graphical representation understanding the current scenario and trends in sales promotion exercising consumer behaviour and market structure. 

Questionnaire 100

Research Analysis 100 theory (mohana), 400 analysis (mala)

Theory of Reasoned Action that was introduced in 1960s help in understanding the consumer behaviour towardspurchase product (Kaur, 2015). The theory was developed by Martin Fishbein and Icek Ajzen that centers its understanding around the pre-existing attitudes of customers that manipulates decision-making process. The states that consumers act and attitude is based on their intention to the interest of receiving a particular outcome. Consumers has been rational actors who acts only at their choice of interest nad budget and profit (Mendez et al. 2014). According to the theory, it is the consumer who decides and also retains the ability to change his or her decision and attempts towards different course of action during purchase process.

Comparative analysis 150

( LULU Hypermarket Sales promotion VS Carrefoure Sales Promotion)

Research methodology 

In this section it is explained how the research process has taken place generating potential outcome. A quantitative research is carried out using surveys and questionnaires that has been distributed to a targeted section of people. The main objective of using quantitative research is to derive potential and sufficient evidence regarding the impact of promotional schemes and marketing implications over consumer purchase behaviour. The statistical methods, graphs, tables have been createdanalyzing the answers of participants. The survey method analysis  gives us the opportunity to either confirm or deny the existing hypotheses. The procedure depends on an understanding of existing promotional strata and previous promotional conditions and extensive study of consumer behaviour using primary sources. Roper understdning has resulted in preparing a questionnaire in deriving meaningful answers that helps in expanding further research work in the similar field.

Research learning 

There are researchers debating that sales promotion restricts revenue reduction  for sales promotion rather encourages a consumer to purchase a product in a higher quantity within the range of discounts or lower prices. Also, that it increases the product that allow the consumer to react instantly that is useful to record the attitude towards a product.  New products always excites customers and mostly when it fits their needs and interest while the product price is low (E and P,  2014). 

In other way sales promotion help in modifying consumer perception. The self-perception theory examines that consumers tend to prefer products based on external attributes,that is based on price reduction, and other schemes. The theory states that the consumer in this case do not focus on internal attributes likebrand preferences. The weakness of sales promotion is the possible ways of influencing consumer buying behavior in relation to price and quality (E and P,  2014). The price perception  theory addresses that the consumers assess the price change of a particular productand compare between the current price and pervious price of the similar product (McNeill et al. 2014). Sales promotion helps in maximizing the selling of product of a  particular brand and reduce hesitation. As a result it sales promotion often increase sales for short term, but indirectly has a negative impact brand equity in long term (McNeill et al. 2014). 

Brainstorming session 

From the research study it is learnt that promotional scheme is considered beneficiary over daverting for it is not cost effective. It helps in gathering targeted and other customers and promote its range of products at once that might provide short term and long term benefit. The literature review provides with previous and present assumptions of sales promotion and its impact on customer behaviour and analyse the gap that helps in broadening the area of research. The quantitative research work provides an extensive survey data that is conducted over the targeted sample in recording the opinions in bringing out potential changes in the field of study. 

When promotional schemes are offered by a particular company, then the customer attempts to gather information regarding the company and its products. It also assess the product value by studying the review of other customers (Santini et al. 2015). After gathering the information,the customer seeks the schemes of  available alternatives. For example, if two food manufacturing companies offer schemes and offers at the same time within the given location, then customer necessitates to evaluate both the schemes and discounts and examine the profit value before he attempt to purchase. Therefore, it is important to keep a record of the promotional schemes and strategies other companies and shape the competitive disadvantage to potential outcome using strategic sales promotions. 


With the advent of globalization and technological advancement, competition is faster with the growing demands of consumers. It is the responsibility of the manager and business management team in initiating strategic promotional and marketing techniques in generating maximum revenue. It is the responsibility of the marketing team to study the competitive use of promotions and introduce new techniques in handling the product value na purchase power. Every business community has its targeted customers whose valuable reviews and feedback needs to be studied in examining the improvisation of existing product. The competitive product pricing and value needs to be checked before establishing promotional strategies. 

It is important to research and conduct comparative study of the internal and external environment in understanding of the product life cycle. It is recommended to use the promotional schemes as a tool in motivating consumers to purchase a new product. It is important to monitor continuous records of financial, psychological, functional and financial risk that affect the consumer purchasing process. Possible techniques need to be formulated that will help sales promotions in creating on term effects on consumers by determining unanticipated factors, consumer choices, product value, competitive advantage, manipulation of external environment and accordingly devise new promotional values.


In this research study it is examined that promotional schemes and marketing plays a n important role in shaping consumer behavior and encourage purchasing process. The role of sales promotion is examined over consumer purchasing behavior. It is seen that consumer buying behavior is strikingly influenced on its pre purchase assessment and multiple purchase stages that is governed by sales promotional strategies. Sales promotion does not guarantee loyal consumers or permanent consumers for the schemse encourage every section of people only for a  limited period of time who are being attracted with the given offer. It is used as a tool to uplift and promote the products to the new set of consumers encouraging consumers in buying a new product.