AND SUGGESTIONS
6.5 Hypotheses
H 3. All consumer sales promotion tools are equal in their usage level by
consumers.
For the purpose of detailed analysis, the data are further classified on
the basis of gender and three levels of income viz., low income consumers,
middle income consumers and high income consumers. Both mathematical
and statistical tools have been used for the purpose of analysis. Tools like
Percentages, Averages, Standard Deviation, Mode, Chi-Square Analysis, t-
test, One-Way ANOVA, Least Squared Deviation (Post-Hoc),
Correspondence Analysis are used. SPSS Analysis software package has been
used for the purpose of analysis.
The study is subjected to some limitations also. First of all there can be
some memory recall errors fkom the part of the respondents. Secondly all of
the selected products are in their maturity stage of life cycle. Finally, data
relating to sales promotion activities are not sufficiently available.
The whole thesis has been presented in six chapters. The first chapter
presents the objectives, hypothesis, methodology and limitation of the study.
The second chapter gives a brief summary of the studies conducted hitherto
on the topic. The third chapter provides an overview of sales promotion as an
element of promotion mix. While the fourth chapter mainly deals with the
consumer experience with sales promotion, the fifth chapter analyses the
consumer perception about various effects of promotion. The sixth and final
chapter highlights the major findings of the study and put forward certain
suggestions to marketers / practicing managers, consumers and retailers.
The review indicates that most of the studies investigated the impact of
sales promotion on consumer behaviour, short-term and long-term profit,
market share, brand equity, etc. consumer's perception about the marketer's
promotional activities has been studied in detail by several authors. How
consumers perceive discount, premium offers, bundling of products, value of
coupons had been the subject matter of various studies. Many studies have
focused on the effectiveness of individual sales promotion tools to achieve a
specific objective.
-
Q Gender: Male - 200 (50%); Female - 200 (50%).
R Level of Education:- Up to SSLC - 129 (32.3%) ; Up to Degree - 62
(15.5%) ; Degree - 92 (23%) ; PG - 83 (20.8%) ; Professional - 34
(8.5%).
-
R Family Size: Up to 3 members - 58 (14.5%); 4 to 6 members - 302
(75.5%); 7 to 9 members - 36 (9%); More than 9 members - 4 (1%).
> People of Kerala mostly prefer nearby shops for purchasing their daily
requirements. This is followed by supermarkets and fixed shops in the
town. Cooperative store is the least preferred place of purchase for
FMCG.
While male buyers mostly prefer fixed shop in the town, female buyers
give maximum preference to the nearby shops. Sources of purchase of
males and females are significantly different.
P Price-Off is the most popular tool of sales promotion for all the three
income groups of consumers. Premium comes next to Price-Off for
low income and middle-income consumers where as POP Promotions
occupy the second place for high income group of consumers. The
opinion of the three groups of consumer is significantly different in the
case of two promotional tools i.e., Trading Stamps and POP
Promotions.
> Even though Price-Off is the most attractive tool of sales promotion to
male as well as female consumers, the tool is more attractive to men
than women. This difference is proved significant as well. As against
the popular opinion that Product Bundling is the second most attractive
tool, female consumers feel that, next to Price-Off, POP Promotions
attract them most.
> Price-Off remains to be the most attractive tool for all the three income
groups of consumers. Attractiveness of Coupons, Rebates and Contest
and Sweepstakes are significantly different among the three groups.
The sex wise preference for coupon distributions is different fkom one
group to the other. While men prefer the distribution with newspapers
and magazines, women like to get it from shops. But the differences in
the preference for various foms of distribution between the two groups
are not significant.
> Out of the two most preferred ways of distributing samples, more men
than women support the distribution over the retail counter, but more
women than men support 'with packet' distribution system. These
differences are proved insignificant.
> Majority of the consumers avail the benefits of Price-Off offers and
Premium schemes. The highest level of awareness and attractiveness of
Price-Off and various forms of premium schemes has resulted in their
wide acceptance by the consumers of FMCGs. The most successfbl
tool of sales promotion scheme in making the buyers buy under the
offer is Price-Off, followed by Premium, Coupons, POP Promotions
and Sampling.
> More female consumers are induced to buy products under the various
schemes of promotion tools than male consumers. Further, the
difference in the usage experience of men and women is significantly
different in the case of Premium and sampling schemes.
> Middle income consumers are at the top of the three groups of
consumers classified on the basis of their income in availing all
promotional schemes except POP Promotions. High income consumers
are the most motivated group because of POP Promotions. Level of
usage of Price-Off scheme among the three income groups is
significantly different.
P In the case of POP Promotions also the two important reasons are
comrnonality and over all unattractiveness. Gender difference does not
influence the order of the above reasons. Low and middle income
consumers consider the former reason as more important than the latter
where as in the case of high income group the opposite is true.
The differences of opinion among the three income groups as far as the
role of price and convenience in the purchase of toothpaste are
significant. Same is the situation in the role of convenience while
buying Cereals and Detergent.
9 Trial purchase possibility is more with men than women in the case of
all the four products. But the differences are significant only in respect
of Cereals and Detergent.
9 More low income consumers are likely to make trial purchases than the
other two groups in the case of the products Tea, Toothpaste and
Detergent. It is more middle income buyers who are likely to buy on a
trial basis as far as the product Cereals is concerned. But the
differences in the trial purchase probabilities of the three income
groups are significant in none of the four products.
9 Price-Off is the most and couponing is the least effective tools of sales
promotion in motivating buyers to try FMCGs for the first time or after
a gap of a reasonable period or a new brand for an existing user.
Except in the case of Cereals, Premium is the second best effective tool
for the purpose.
9 Price-Off is the most and couponing is the least effective tool of sales
promotion in motivating buyers to switch brands in the case of all the
four categories of products. Except in the case of toothpaste, POP
Promotion is the second best effective tool for the purpose.
> The first two important reasons for stockpiling during promotional
offers, for the consumers of tea and toothpaste, are the reduction of the
shopping cost and inconvenience and savings accrue when buying
larger quantities. Even though the first reason for stockpiling by the
consumers of Cereal is the same as in the case of Tea and Toothpaste,
they identified their second important reason as the desire to consume
more quantities of the product. The monetary savings one might get
while purchasing larger packets of detergent induce them to buy such
packets and stockpile.
> The opinion of male and female consumers is more or less uniform.
Though there are some differences in the importance given to various
reasons for stockpiling they are not significant. Differences among the
consumers of various groups of income are also proved insignificant.
6.19 Conclusion
On the basis of the above findings the researcher has arrived at the
following conclusions:
*:* The level of awareness about various sales promotion tools is very low
except in the case of Price-Off and Premium schemes. It is suggested
that sales promotion schemes should be sufficiently backed and
supported by print and electronic media advertising.
*:* Marketers may use Price-off or discount strategy to achieve the short-
term objectives of promotion like brand switching, trial purchase, and
stockpiling ahead of other schemes.
+:It+
is observed fiom the results of the study that consumers who would
purchase larger than their normal quantities of FMCGs and stockpile
for future consumption do so in order to reduce shopping cost and
convenience and not to accelerate consumption. Hence sales
promotions should not be undertaken with the object of increasing
consumption quantity and incidence.
Suggestions to Consumers
*:* Consumers may consider the real benefits they get and the cost they
pay while deciding to avail a promotion offer since price promotions
involve more out lay than they normally spend.
Suggestion to Retailers