Impact of Sales Promotion on Consumer Buying Behavior: A Case of Modern Trade, Pakistan

Abstract

Rapidly changing market conditions and the competitiveness of market players is forcing the “all what you need one roof retail concept” businesses to look for various tactics to attract as well as retain customers through a number of sale promotion strategies. For that matter, this study tests the impact of various sale promotion strategies and its impact of consumer buying behavior. In order to do so, a quantitative research strategy has been followed, where the sample of 297 was collected by selecting walk-in customers at 25 supermarkets/hypermarkets in Lahore (Pakistan). Novelty of this study is the fact that, Modern Trade (MT) segment is being targeted only, MT refers to those retail stores who have an area of at least 1 Kannal (5445 sqft), have their own electronic billing system and trolley system. MT is further categorized in to Local Modern Trade (LMT) and International Modern Trade (IMT). Analysis through correlation and regression modeling help to conclude that buy one get one free, price discounts and coupons are positively related with consumer buying behavior, whereas, free samples and bonus packs are not significantly related with the dependent variable.

Keywords: Sales Promotion, Consumer Buying Behavior, Modern Trade, Sales Management, Marketing