Year 2012, Issue 120

Date published

21.12.2012

Table of content

  • Marusya Smokova Stefanova
    PROMOTIONS (PERCEIVED BENEFITS AND EFFECTS)
    JEL: M31, C51, C52, C53, C15, C12
    Keywords: promotions, utilitarian benefits, hedonic benefits, effectiveness of promotional campaigns, structural equation modelling
    Summary: 185 ABSTRACT Promotions are a marketing tool of increasing significance for all participants in the distribution channel. However, there are a great number of open discussion issues about them. The present study identifies and dis-cusses semantic, definition and classification issues leading to inconsis-tencies in the dominan ... ... CONTENTS Introduction 9 Chapter ². On the necessity of reconsidering and rearranging the dominant conceptual apparatus 13 1.1. Semantic issues in studying promotions 13 1.2. Definition issues in studying promotions 17 1.3. Classification issues in studying promotions 27 Chapter ²². Research traditions in studying the effects of promotions 42 2.1. Rational-economic traditions 42 2.1.1. Research on the short-term effects of promotions 44 2.1.2. Research on the long-term effects of promotions 46 2.2. Descriptive-profiling traditions 52 2.3. Explorative-psychological traditions 58 2.3.1. Research based on introduced behavioural theories 59 2.3.2. Research based on endemic theories of promotions 78 2.4. Problem areas in studying promotions 88 Chapter ²²². Guidelines for conceptual specification and measuring the perceived benefits of promotions 91 3.1. Concept of utilitarian and hedonic benefits 92 3.2. Conceptualization and operationalization of utilitarian benefits 95 3.3. Conceptualization and operationalization of hedonic benefits 106 Chapter ²V. Empirical analysis of perceived benefits of promotions 124 4.1. Methodological framework of the research 124 4.2. Empirical arguments for the number and structure of the benefits of promotions 127 4.3. Guidelines for increasing the effectiveness of promotional campaigns 135 Conclusion 161 References 165 Appendixes 179 Abstract 185 ABSTRACT Promotions are a marketing tool of increasing significance for all participants in the distribution channel. However, there are a great number of open discussion issues about them. The present study identifies and dis-cusses semantic, definition and classification issues leading to inconsis-tencies in the dominant conceptual apparatus of promotions. It derives a positive, customer-centric definition of promotion and a classification scheme on the basis of perceived benefits of promotional offers. The research traditions in studying the effect of promotions which are conditionally differentiated into three groups – rational-economic, descriptive-profiling and explorative-psychological are traced in order to find out the causes for the stated problems. It is empirically ascertained via structural equation models that consumers find three utilitarian and one hedonic benefits in promotions. It is proved that monetary savings benefit has the greatest relative contribution to the attitude towards discounts and bonus packs; and the pleasure benefit – towards loyalty programmes, charity promotions, samplings, promotional games, and free gifts. The segment of promotion-prone consumers is identified on the basis of the outlined benefits and various psychographic charac-teristics.