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The Negative Impact of Promotional Strategies on Consumer Perception in The Consumer Nondurable Goods Industry: Buy One Get One Free vs. Price Discount

  • Promotional offers play a significant role in order to obtain and retain new and existing customers. There are already many researches comparing the performance and effectiveness of sales strategies during the promotional period. Results reveal that the framing of the saving message influences consumers’ perception of the price which in turn leads to an uncommon purchase decision. Even though the offers are mostly economically equivalent, people have preferences depending on the pricing practice. Data from previous researches shows that in many cases bonus packs are generally more preferred than a discount. Most commonly applied in-store strategies in Germany are price discount and buy one get one free. Will the value perception for BOGOF still be higher than price discount after the promotion expires? This study will specifically focus on BOGOF and price discount in the consumer nondurable goods industry. A total of 450 randomly selected people participated in the A/B survey. The A survey focusses on questions relating to price discount whereas the B survey includes questions regarding BOGOF. In both surveys, the promotion is no longer valid. The survey data reveals that the willingness to pay for consumer nondurable goods during the post-promotion phase is higher when promoting with BOGOF rather than with price discount. This research has the potential to form a crucial answer for academics and marketers in the consumer nondurable goods industry as it provides insight of the long-term influence of promotion on consumer psychology.

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Metadaten
Author:Sandra Thai
Advisor:Kai-Markus Müller
Document Type:Bachelor Thesis
Language:English
Year of Completion:2019
Granting Institution:Hochschule Furtwangen
Date of final exam:2019/02/28
Release Date:2019/03/08
Tag:Bonus packs; Promotion; Sales strategies
Page Number:41
Degree Program:IBW - Internationale Betriebswirtschaft
Functional area:Marketing
Licence (German):License LogoUrheberrechtlich geschützt