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ABSTRACT
The purpose of writing this research article is to synthesize the literature up till now, in the context of consumer response towards non-monetary and monetary sales-promotion. This research article reviews the previous studies about non-monetary and monetary sales promotion and presents it in sequential order. Authors interpret it in a meaningful way to develop an overall understanding of how a consumer responds towards non-monetary and monetary sales-promotion. It highlights the key contributions of previous research, limitation and future research direction in the context.
JEL Classification: M31.
Keywords: Sales Promotion; Monetary Promotion; Non-Monetary Promotion; Consumer Response.
1. INTRODUCTION
Sales volume of business significantly depends on the sales promotional strategy of the company; hence sales promotion is a useful tool to achieve the sales objective of producer and retailers (Alvarez & Casielles, 2005a). It is the most useful tool in comparison to other promotional tools (Balaghar, Majidazar, & Niromand, 2012). New consumers try it to explore new variety, and for a brand loyal consumer, it is perceived as value addition (Owens, Hardman, & Keillor, 2001). Since few years, marketers' expenditure on promotional activities is increasing while expenditure on advertising is declining continuously (Shimp, 2010). The importance of sales promotion has attracted researchers to study about sales promotion techniques and its relation to consumer response. Consumer response regarding sales promotion has been studied in multiple contexts and industries. Sales-promotions have utility beyond their conventional role of short-term sales boost (Owens et al., 2001).
Sales promotion is mainly categorized as the non-monetary and monetary sales promotion. Monetary sales promotion provide monetary/money saving benefit a consumer. Non-monetary sale promotion provides benefit to the consumer other than monetary benefit from. Previous researchers have explored the differential consumer response towards non-monetary and monetary sales promotion (Chandon, Wansink, & Laurent, 2000; Kwok & Uncles, 2005a; Montaner & Pina, 2008; Smith & Sinha, 2000). The consumer's response to non-monetary and monetary sales promotion is different depending on the context. In some context non-monetary-promotion are more successful and, in some context, monetary sales promotion are more successful. The study of Owens et al. (2001) presents the opinion that brand loyal purchaser has a higher perception for monetary-promotion than non-monetary promotion the study of Montaner and Pina (2008) presents the opinion that monetary-promotion diminishes...