SYNOPSIS

A Multi-Benefit Framework of Sales Promotions in Consumer Durable Goods

Submitted by

Samarendra Nayak
Regd. No: 1041333014 Under the Guidance of Dr. Uma Sankar Mishra Associate Professor

INSTITUTE OF BUSINESS & COMPUTER STUDIES

SIKSHA O ANUSANDHAN UNIVERSITY, BHUBANESWAR, ODISHA CONTENTS

1. Introduction 2. Research Problem

Broad Statement Specific Components

3. Research Objectives 4. Research Questions 5. Formulated Hypotheses 6. Relevance of the Study 7. Research Method
8. 9. Sources of Data Sampling Plan Methods of Data Collection Statistical Tools for Analysis

Scope of Study Chapterization Scheme

Introduction
Marketers and academics often view the reliance on sales promotions, especially monetary promotions, as a suboptimal consequence of price competition caused by myopic management. Are monetary savings the only explanation for consumer response to a sales promotion? If not, how do the different consumer benefits of a sales promotion influence its effectiveness? To address the first question, this research builds a framework of the multiple consumer benefits of a sales promotion. Sales promotions have become a vital tool for marketers and its importance has been increasing significantly over the years. There is also a managerial belief that if a brand is supported with frequent promotional offers, the equity of the brand tends to get diluted. On the contrary, there have also been studies that indicate brands benefit from promotions. Amongst the elements of marketing mix, sales promotions have long-term influence on brand equity. A careful analysis of the Indian market reveals the dramatic changes that occurred since 1990s resulting in manifold increase in the purchase of consumer durable products. As a result of all these changes, the role and functions of marketing have undergone a metamorphic change in recent years. Many new concepts and patterns of thought have emerged. That apart, changes have also taken place in the consumer buying habits and spending behavior. Consumers have become more knowledgeable, more adventurous and more demanding, compelling, in a way, redefinition of marketing strategies and orientations of companies. Since present day consumers are more concerned for value, brand image and performance than ever before, consumer satisfaction is viewed as an integral part of total quality package in terms of form utility, place utility, time utility and possession utility

Research Problem
- Broad Statement Gathering information about the implications for the effectiveness of monetary and non-monetary sales promotions in the mindset of customers of consumer durables for the formulation of future promotion strategy. Specific Components Demographics Customers attitude and perception Awareness level of different promotion schemes Sales Promotion Schemes offered in consumer durable industry

Determinants of customer-perceived benefits of Sales Promotion Proposed modifications in promotion mix portfolio

Research Objectives
To build a framework of the multiple consumer benefits of sales promotion in consumer durables To find out and compare the effectiveness of monetary and nonmonetary promotions giving different types of benefits to customers To find out the major determinants of sales promotion effectiveness To study sales promotion effectiveness as a multi dimensional construct.

Research Questions
What are extrinsic and intrinsic benefited products? What is the difference between monetary and non monetary sales promotions? Why Do Consumers Respond to Sales Promotions? How Do Promotion Benefits Influence the Evaluation of Monetary and NonMonetary Promotions? When are Monetary and Non-Monetary Promotions Most Effective?

Formulated Hypotheses
H1: High-equity brands are more promotion elastic than low-equity brands. H2: For low-equity brands, monetary and non-monetary promotions are equally effective for extrinsic benefited products as for intrinsic benefited ones H3: For high-equity brands, monetary promotions are more effective for extrinsic benefited products than intrinsic benefited ones

Relevance of the Study

By this type of research study, marketers can increase sales promotion effectiveness by matching the type of promotion to the type of product being promoted. Such multibenefit promotions would appeal to the different benefits sought by the various segments of consumers buying each product. This can be confirmed whether the effects of non-

monetary promotions are always positive and are relatively more stable across product types. Non-monetary promotions are also more likely than monetary promotions to create unique brand associations that can reinforce brand image. As an expansion of this study, it would be interesting to study benefit importance across the different phases of the product life cycle, across different purchase situations, and between different general demographic and personality classifications.

Research Methods
Sources of Data

Both from primary as well as secondary sources, data will be drawn. Primary sources include the customers of various retail outlets of durable goods offering sales promotion schemes. Secondary sources include different academic journals, reports, corporate bulletins, magazines, news papers, text books, and web sites. Sampling Plan The sampling procedure to be used for this study will be stratified random sampling. The stratification will be done on the basis of geographic locations. From each location, about 100 customers will be randomly selected. Again, the respondents will be selected from two major cities in Odisha, viz. Bhubaneswar and Cuttack. Methods of Data Collection The instrument which will be used for the collection of primary data is a ready made questionnaire, which needs to be coded in order to be analyzed. The questionnaire has to be piloted in a customer group, whereby customers will be allowed to critically analyze the questionnaire in case any amendments needed to be made. Once this will have been done, the questionnaire will be ready to be carried out on a sample of customers who purchase the durable goods in Odisha. Data will be collected using the personal-contact approach. All the responses will be measured on a seven-point Likert scale. Statistical Tools for Analysis The data produced from the coded questionnaire will be processed via analysis and interpretation, aided by pictorial evidence, for the clarity of understanding. The software package SPSS will be used to carry out the analysis based on the three areas, viz.Chi Square Test, Factor Analysis and Correlation Analysis.

Scope of the Study

The proposed research study focuses more on primary data. The sample of study will be confined to two major cities of the state of Odisha. The study will cover all the aspects related to perceived benefits of sales promotion. Some competitive selling strategies can be suggested by this research. In factor analysis, the naming of the factors will be carried out intuitively which would not be very representative of the variables loaded on them. Responses have to be collected from the customers of Odisha state only, and hence there is a possibility of cultural & economic bias playing a role in the outcome of the study.

Chapterization Scheme
The proposed research report shall contain the following chapters: Chapter-I It will cover the introductory part, problem statement, research objectives, Statements of hypotheses, Research methodology Chapter-II This chapter shall highlight the current trend of Indian Consumer durable industry Chapter-III This chapter shall emphasize on theoretical implications of different sales promotion strategies Chapter-IV It will cover the data presentation, data analysis and interpretation Chapter-V It will cover summary of findings, suggestions, conclusion, and scope for future research and managerial implications.