Resource title

A Benefit congruency framework of sales promotion effectiveness

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Are monetary savings the only explanation for consumer response to a sales promotion? If not, how do the different consumer benefits of a sales promotion influence its effectiveness? To address the first question, this research builds a framework of the multiple consumer benefits of a sales promotion. Through a series of measurement studies, the authors find that monetary and non-monetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression, entertainement and exploration), and three utilitarian benefits (savings, higher product quality, and imporved shopping convenience). To address the second question, this research develops a benefit congruency framework which argues that a sales promotion's effectiveness is determined by the utilitarian of hedonic nature of the benefits it delivers, and the congruence these benefits have with the promoted product. Among other results, two choice experiments show that, as predicted for high-equity brands, monetary promotions ae more effective for utilitarian products than for hedonic products. The authors then discuss the implications the multi-benefit and the benefit congruency frameworks have for understanding consumer responses to sales promotions, for the debate about the value of everyday-low-price policies, and for designing more effective sales promotions.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2000/2000-22.pdf

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Copyright INSEAD. All rights reserved