• Journal of Distribution Research
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• v.10 no.4
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• pp.1-22
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• 2005

The major objectives of this study are twofold. The first is to discover which in-store tactics influence store performance when a retailer implements category management in variety enhancer and fill-ins categories. The second is to analyze how and why specific in-store tactics achieve better or worse performance than other in-store tactics across categories. The data were collected using scanner data and direct observations in 'A' discount store which is one of the representative discount stores in Korea. The in-store tactics were measured by product assortment, temporary price discount, price and non-price promotion, and shelving. The store performance was measured by sales and gross margin return on inventory investmant(GMROI). Empirical results analyzed by multiple regression were as follows: In variety enhancer category, the significant factors affecting sales were product assortment, temporary price discount, price promotion, and shelving. Non-price promotion also influenced GMROI positively but product assortment impacted on GMROI negatively. In fill-ins category, the significant factors affecting sales and GMROI were product assortment and shelving. However, the other factors such as temporary price discount, price promotion, and non-price promotion had no significant influence on both sales and GMROI. This paper presents a number of theoretical and managerial implications of the empirical results and concludes by addressing limitations and future research directions.

• The Journal of Economics, Marketing and Management
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• v.4 no.1
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• pp.23-33
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• 2016

Sales promotion is defined as the short-term incentive to encourage the purchase or sale of products and services. Retailers conduct a variety of sales promotion to encourage the purchase or sale of products and services. It is often used to induce the purchase of customers in short term and to improve the relationship with customers in the long term. Many previous studies about the effect of price discount SP on increase in sales and image improvement have conducted. But the study of non-price promotion, especially SP with 'Gifts', meanwhile, has been seldom researched. This study is to investigate the effect of the Gift SP conducted by retailers on the customer evaluation of the product and its Gifts. This study is to investigate the effect of 'Gifts', among the non-price promotion, on the customer evaluation. First of all, previous studies about the effect (-) of Sp with 'Gifts' on the customer evaluation of the product and its Gifts, and the factors that offset the negative effect of SP with 'Gifts' on quality perception are to examined. In this study, additionally, the summary of the study based on the previous studies and the research subject in the future are to be presented. Firstly, to examine the previous researches on the effect of SP which retailers conduct on the increased sales and or enhanced image, price discount SP has attracted a lot of attention as a research subject but researches on non-price sales promotion, particularly on SP with gift have seldom conducted as a research subject. Secondly, in the previous studies relevant to Price Discount SP, the long-term negative (-) effect of the target product or brand of SP has been studied. However, a few researches on the long-term negative (-) effect of SP with gift have been conducted. Thirdly, it might be brand affinity and purchase limit that buffered the negative (-) effect on the perceived quality of SP with gift which retailers had conducted. In spite of various studies conducted by many researchers, each study have discussed the consequences under certain circumstances and integrated results of research have not been in progress. It may be the research issues left to us to clearly identify the psychological mechanism of consumers until the effect of SP happens in order to theorize SP and to present a practical and useful suggestion.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.507-518
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• 2022

This study aimed to measure the monetary and non-monetary effects on brand awareness at hypermarkets in Riyadh. The independent variable consists of three sub-variables: price reductions, free samples, and purchasing vouchers. The research population has all Saudi and non-Saudi buyers in Riyadh. The figures show that the population size reached 3.87 million in 2019. The proportional stratification sampling technique and the recommended sample size were 387 buyers. The five-point Likert scale with the fully structured questionnaire was used. The study concldes the effect of free samples on brand awareness while there was no effect of monetary instruments. The results show that the three sales promotion incentives (price reduction, free samples, and purchasing vouchers) moderately affected brand awareness and a key role in explaining consumer behavior, so the significant impact was proved. In summary, this study showed that price reductions have the power of creating the perception of buyers at hypermarkets in Riyadh. Non-cash instruments were more effective than cash instruments in enhancing brand awareness at the hypermarkets in the Saudi market. So, the price reductions and purchasing vouchers have less power in conducting communication-based awareness. Building awareness and improving brand image through free samples were most visible in communication strategy.

• The Journal of Economics, Marketing and Management
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• v.8 no.3
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• pp.9-21
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• 2020

Purpose: Previous literature shows that a price promotion serves as a negative cue of product quality especially when consumers have no additional information about the product's other attributes. In this research, we explore how the effect of price promotions on consumers' perceptions of product quality changes depending on their ability to compare promoted product attributes with competitive products' attributes. Research design, data and methodology: Specifically, we use a series of scenario-based lab experiments using different types of products and explore if attribute alignability among competing products in a consumer's choice set influences consumers' ability to compare the product attributes and perceived quality. Results: Our study findings show that high attribute alignability among products makes consumers easier to compare the product attributes and thereby focus more on non-price information than price information. We also show that attribute alignability serves as a moderator and decreases perceived quality when the promotion level is higher. Therefore, the attribute alignability weakens the negative impact of a price promotion on consumers' perceived product quality. Conclusions: Our study findings provide new insights on how to implement price promotion strategies while keeping products' perceived quality, by considering the product's relationships with competing products in a choice set.

• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.17-27
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• 2009

Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

• Journal of the Korean Home Economics Association
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• v.37 no.4
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• pp.41-58
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• 1999

The purposes of this study were 1) to segment the market based on purchase frequency of products such as apparel, food, home electronics, life commodity in department store and low-price retailing, 2) to identify differences among segments in belief and attitude toward each store, purchase frequency of apparel items in each store and demographic variables. The data were collected via a self-administered questionnaire from 274 married women living in Seoul, Korea and analyzed by factor analysis, cluster analysis, one-way ANOVA and x$^2$-test. The results of this study were as follows: First, using cluster analysis on purchase frequency of products in each store, four groups were identified and labeled as department store patronage/ non-purchasers of apparel in low-price retailing(25.2%), purchasers of apparel in department store and low-price retailing(16.8%), low-price retailing patronage(30.3%) and non-purchasers of products in department store and low-price retailing(27.0%). Second, a series of one-way ANOV As revealed significant differences among four segments on beliefs of low-price retailing(four store attributes: price and variety of apparel product, facilities for convenient shopping, promotion, brand-reputation and fashionability of apparel product) and department store(three store attributes: price and variety of apparel product, facilities for convenient shopping and promotion) and attitude toward low-price retailing and department store. Attitude toward each store was yielded using Fishbein's multiattributes model. There were also significant differences among groups in purchase frequency of seven apparel items in low-price retailing and six apparel items in department store, and six demographic and personal variables(age, educational status, type of husband's occupation, monthly income and housing). Finally, the papers discussed manageral implications for each segments as well as theoretical implications.

• Korean Journal of Health Education and Promotion
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• v.30 no.4
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• pp.9-16
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• 2013

Objectives: The purpose of this manuscript was to review Intersectoral Collaboration policies for Tobacco Control. Methods: The author selected the WHO Framework Convention on Tobacco Control and adopted guidelines, and reviewed intersectoral and multisectoral collaboration policy recommendations. Results: There are 11 chapters and 38 articles in the Convention. In the Demand reduction policies included price and non price measures. The author selected a few non price measures for cross sectoral collaboration examples. They are protection from exposure to tobacco emission, education and communication, banning advertising, promotion and sponsorship of tobacco products, and offering treatment to tobacco use cessation. Inter sectoral and multi sectoral approaches could increase effectiveness, and better outcome of the tobacco control policy for implementation of many different articles of FCTC. Conclusions: It is important to give a specific role in structures of different government sectors and infrastructure for intersectoral collaboration. In addition, the role of civil society is very important for implementation of tobacco control policy effectively, and governments have to support the civil society for anti-smoking activities and campaigns.

• International Journal of Costume and Fashion
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• v.8 no.2
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• pp.65-81
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• 2008

This study examined the efficacy of shopping malls�v isual experience and convenience (i.e., exterior and interior changes) and general promotions (i.e., price and non-price promotions) by investigating their level of accomplishing promotion objectives that include consumers�a wareness, interest, trial endorsement, willingness to purchase, and visits/spending. Results showed that in general, shopping malls�p romotions did not effectively accomplish any of the five promotion objectives. However, some promotion activities are more effective in achieving a specific objective than other promotion activities. Shopping malls should take advantages of the functions of different types of promotions to form a comprehensive promotion strategy.

• The Korean Journal of Community Living Science
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• v.24 no.3
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• pp.313-325
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• 2013

The purpose of this study is to investigate impulse buying and the searching for sources of information among males and females in their 20s by their utilization of sales promotion in an internet fashion shopping mall. The findings were as follows: First, there was a statistically significant difference in the use of sales promotion by age and gender. Second, two factors, such as a price-oriented utilization of sales promotion and a non price-oriented utilization of sales promotion were extracted from the analysis of sub factors of the utilization of sales promotion in an internet fashion shopping mall. Third, five factors, including affective impulse buying, provocative impulsive buying, situational impulse buying, reminder impulse buying, and pure impulsive buying, were extracted from the analysis of sub factors of impulse buying in an internet fashion shopping mall. Fourth, the utilization of sales promotions in an internet fashion shopping mall had statistically significant effects on the sub factors of impulse buying, provocative impulse buying, situational impulse buying, reminder impulse buying, and pure impulse buying. Fifth, the analysis of the correlation between the utilization of sales promotion and the searching for sources of information revealed that price-oriented utilization of sales promotion had a correlation with DM or text message, advice from friends or family, advice from a sales person, information from friends or colleagues, celebrity supporters on TV dramas or movies, and product commercials and information.

• Journal of Distribution Research
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• v.15 no.3
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• pp.1-34
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• 2010

Introduction The purpose of this research is to develop overall model which involves the effect of ongoing support services by franchisor on franchisee's relationship quality(trust, satisfaction, and commitment) and business performance(financial and non-financial performance), and to investigate the relationships among trust, satisfaction, commitment, financial and non-financial performance. This study also suggests franchise business or franchise system should be based on long-term orientation between franchisor and franchisee rather than short-term orientation, or transactional relationship, and proposes the most effective way of providing on-going support services by franchisor with franchisee thru symbiotic relationship among franchisor and franchisee Research Model and Hypothesis The research model as Figure 1 shows the variables on-going support services which affect the relationship quality between franchisor and franchisee such as trust, satisfaction, and commitment, and also analyze the effects of relationship quality on business performance including financial and non-financial performance We established 12 hypotheses to test as follows; Relationship between on-going support services and trust H1: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's trust. Relationship between on-going support services and satisfaction H2: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's satisfaction. Relationship between on-going support services and commitment H3: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's commitment. Relationship among relationship quality: trust, satisfaction, and commitment H4: Franchisee's trust has positive effect on franchisee's satisfaction. H5: Franchisee's trust has positive effect on franchisee's commitment. H6: Franchisee's satisfaction has positive effect on franchisee's commitment. Relationship between relationship quality and business performance H7: Franchisee's trust has positive effect on franchisee's financial performance. H8: Franchisee's trust has positive effect on franchisee's non-financial performance. H9: Franchisee's satisfaction has positive effect on franchisee's financial performance. H10: Franchisee's satisfaction has positive effect on franchisee's non-financial performance. H11: Franchisee's commitment has positive effect on franchisee's financial performance. H12: Franchisee's commitment has positive effect on franchisee's non-financial performance. Method The on-going support services were defined as an organized system of continuous supporting services by franchisor for the purpose of satisfying the expectation of franchisee based on long-term orientation and classified into six constructs such as product category & price, logistics service, promotion, providing information & problem solving capability, supervisor's support, and education & training support. The six constructs were measured agreement using a 7-point Likert-type scale (1 = strongly disagree to 7 = strongly agree)as follows. The product category & price was measured by four items: menu variety, price of food material provided by franchisor, and support for developing new menu. The logistics service was measured by six items: distribution system of franchisor, return policy for provided food materials, timeliness, inventory control level of franchisor, accuracy of order, and flexibility of emergency order. The promotion was measured by five items: differentiated promotion activities, brand image of franchisor, promotion effect such as customer increase, long-term plan of promotion, and micro-marketing concept in promotion. The providing information & problem solving capability was measured by information providing of new products, information of competitors, information of cost reduction, and efforts for solving problems in franchisee's operations. The supervisor's support was measured by supervisor operations, frequency of visiting franchisee, support by data analysis, processing the suggestions by franchisee, diagnosis and solutions for the franchisee's operations, and support for increasing sales in franchisee. Finally, the of education & training support was measured by recipe training by specialist, service training for store people, systemized training program, and tax & human resources support services. Analysis and results The data were analyzed using Amos. Figure 2 and Table 1 present the result of the structural equation model. Implications The results of this research are as follows: Firstly, the factors of product category, information providing and problem solving capacity influence only franchisee's satisfaction and commitment. Secondly, logistic services and supervising factors influence only trust and satisfaction. Thirdly, continuing education and training factors influence only franchisee's trust and commitment. Fourthly, sales promotion factor influences all the relationship quality representing trust, satisfaction, and commitment. Fifthly, regarding relationship among relationship quality, trust positively influences satisfaction, however, does not directly influence commitment, but satisfaction positively affects commitment. Therefore, satisfaction plays a mediating role between trust and commitment. Sixthly, trust positively influence only financial performance, and satisfaction and commitment influence positively both financial and non-financial performance.