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50% Discount vs buy one get one free: impact on value perception of Thai consumers

  • Sales promotion are commonly used tool by marketers to manipulate consumer toward a certain offer or product. Attractiveness of a promotion can increase the demand of the promoted product. Monetary and non-monetary are considers the two main types of sales promotions. Monetary sales promotion, also known as price promotion, will provide immediate price discount upon purchase, for example 50% discount. Non-monetary sales promotions or premium promotion, on the other hand, usually grant consumer an extra free product or additional service for free. Previous studies also demonstrated that different sales promotion affect consumer behavior differently. Consumers’ value perception can be influenced by several factors. For instance, marketers use specific “phrase” such as “value pack” to influence consumer price perception. Rationally, consumers’ value perception should remain unchanged regardless of the phrases use to describe the promotion with same discount value. In this study, we examine the impact two sales promotion those are “50% discount” and “buy one get one free” on value perception of Thais consumers. These two deals have equal economic value but perceived differently by consumer. We aim to answer the question “does two different deals with the same value impact value perception of the same product differently?” In order to obtain logical answer, two set of questionnaires were send out to observe the maximum price which consumer willing to pay for “instant noodles” and “soy protein powder”. Unfortunately, the result from our survey were not significant enough for us to derive a concrete conclusion. We also discuss about potential cause of the unexpected result and interpret our result for better understanding. Even without a significant finding, this paper address that different sales promotions impact consumer in various ways supported by other literatures and also self-assumption.

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Author:Papan Karnokpogtchananon
Advisor:Kai-Markus Müller
Document Type:Bachelor Thesis
Year of Completion:2020
Granting Institution:Hochschule Furtwangen
Date of final exam:2020/06/30
Release Date:2020/07/01
Tag:Sales promotion; Thai consumers; Value perception
Page Number:34
Degree Program:IBM - International Business Management
Functional area:Marketing
Open-Access-Status: Closed Access 
Licence (German):License LogoUrheberrechtlich geschützt