Impact of Sales Promotion On Consumer de
Impact of Sales Promotion On Consumer de
Impact of Sales Promotion On Consumer de
ON
IMPACT OF SALES PROMOTION ON CONSUMER DEMAND; A
STUDY ON DETERGENT POWDER USERS OF JESSORE &
KHULNA CITY
Internship Report
(Submitted in partial fulfillment of the requirement of BBA program)
Submitted By:
Md. Rezwanur Rahman
ID-110332
Supervised By:
S. M. Arifuzzaman
Associate Professor
Submitted To:
Chairman
Research and External Affairs Committee
KHULNA UNIVERSITY
Business Administration Discipline
BBA Program
Date of Submission:
August 7th, 2016
LETTER OF TRANSMITTAL
August 7, 2016
Chairman
Research and External Affairs Committee
Business Administration Discipline
Khulna University.
Subject: Submission of Internship Study report.
Dear Sir
With due respect; I state that as a partial requirement for the completion of my degree
in BBA program I have done my internship in Unilever Bangladesh Limited. Here is
my internship report on “The Impact of Sales Promotion on Consumer demand; A
Study Based on Detergent Powder Users of Jessore & Khulna City”.
I have tried my level best to bring productive report following all your directions and
advices carefully.
If you need any assistance regarding this report, I will always be available for this
regard.
Yours sincerely,
______________________________
(Md. Rezwanur Rahman)
ID- 110332
Supervised by:
_______________________________
(S. M. Arifuzzaman)
Associate Professor
Business Administration Discipline
Khulna University.
i
Acknowledgements
A substantial amount of thoughts and informational inputs from diverse
resources were involved in making this paper. I convey my earnest gratitude to
everybody who had contributed towards making this internship report possible. Major
assistance was acknowledged from officials at Unilever Bangladesh Limited and
Khulna University, Bangladesh.
My heartfelt gratitude goes to my internship supervisor Mr. S.M.
Arifuzzaman, Associate Professor, Business Administration Discipline, Khulna
University for giving me confidence all the time, to carry out such a relational study
to complete my internship requirements. He ensured proper time and attentiveness,
which I needed for completing and compiling my report in as much organized way as
possible.
I like to thank the authorities of Unilever Bangladesh Limited to give me the
valued opportunity to execute my internship at their prestigious organization. The
experience and acquaintance gained at Unilever Bangladesh Limited assisted me
greatly to undertake and understand all the essentials related to my report, otherwise I
would not have performed well.
I would especially like to express gratitude to my supervisor at Unilever
Bangladesh Limited, Mr Tausif Hossain, Brand Activation Manager for Rin, for his
utmost support, assistance and encouragement that he provided to me from the very
first day. In spite of having a busy work schedule, he made sure in every possible way
that I obtain the best possible exposure and awareness during my term as an intern
under him.
Sincerely yours,
Md. Rezwanur Rahman
ID: 110332
21st Batch
ii
Table of Contents
Executive Summary...............................................................................................................vi
Chapter 1-Introduction..........................................................................................................1
1.1Title of the Study.............................................................................................................2
1.2 Background of the study:................................................................................................2
1.3 Origin of the Study:........................................................................................................3
1.4 Justification of the Study:...............................................................................................3
1.5 Scope of the Study:.........................................................................................................3
1.6Limitations of The Study:................................................................................................3
1.7 Objective of the Study:...................................................................................................4
1.7.1 General Objective:...................................................................................................4
1.7.2 Specific Objectives:..................................................................................................5
1.8 Significance of the study:................................................................................................5
Chapter 2: Literature Review................................................................................................6
2.1 The role of Consumer in Marketing................................................................................7
2.2 Consumer Purchasing Behavior......................................................................................8
2.3 Context of Sales Promotion..........................................................................................10
2.3.1 Discount:...............................................................................................................13
2.3.2 Price pack:.............................................................................................................13
2.3.3 Free product samples:...........................................................................................14
2.3.4 Awards:..................................................................................................................14
2.3.5 Demonstrations and product trials.........................................................................14
2.4 Consumer Promotion:...................................................................................................15
2.5 Price Perception:...........................................................................................................15
2.6 Brand Loyalty:..............................................................................................................16
2.6.1 Relationship between consumer promotion and brand loyalty...............................17
2.6.2 Relationship between price perception and brand loyalty......................................18
Chapter 3: Methodology......................................................................................................19
3.1 Questionnaire Development:.........................................................................................19
3.2Sources of Data..............................................................................................................21
3.2.1 Primary Sources of Data.................................................................................21
3.2.2 Secondary Sources of Data.............................................................................21
Chapter 4: Data Analysis & Discussion..............................................................................22
iii
4.1 Reliability Test:.......................................................................................................22
4.2 Frequency Analysis:................................................................................................23
4.3 T-test:......................................................................................................................25
4.4 Anova:....................................................................................................................29
4.4.1 Age wise.................................................................................................................29
4.4.2 Brand wise.............................................................................................................31
Chapter 5: Findings..............................................................................................................33
Chapter 6: Recommendation...............................................................................................35
Chapter 7: Conclusion..........................................................................................................36
Chapter 8: References..........................................................................................................37
Chapter 9: Appendix............................................................................................................43
9.1Questionnaire.................................................................................................................43
9.2 Independent Sample t-test-Group Statistics..................................................................46
9.3 Reliability tables-Case Processing summary.................................................................47
9.4 Frequency Table-Detailed variables analysis................................................................49
iv
List of Tables
v
Executive Summary
vi
Chapter 1-Introduction
1
techniques on consumer demand has been conducted in the FMCG markets of
Bangladesh. In this paper, a particular section of FMCG market which is
laundry detergent will be focused for measuring the impact of sales promotion
on consumers.
2
the detergent marketplace, better consumers’ reaction & their feelings about
the brands of detergent on promotion are also measured being worth learning.
To explore market share issues, the brand loyalty element should also be
explored.
3
perception of brand personality proposed by [ CITATION Aak96 \l 1033 ] and
shown in the scale developed by [ CITATION Pap05 \l 1033 ].
There are large amounts of information and writings related to the topic of this
research that is available in the internet and from different other sources, but it may
not be possible to gain access to many such information. So there remains a
possibility of missing out some important aspects of the discussed. There is a major
time constraint in doing the research work and preparing the report, a much bigger
collection of information could have been dealt with if there was additional time to
study them. A minimum sample size was used for this research; if a larger sample was
taken for consideration the exploration could have been more precise. The survey was
conducted in Jessore & Khulna city which might be a potential reason for the citizens’
mind set to be similar and survey results not being very different from one another,
the results might have been different if people from suburban & rural were brought
under consideration.
4
Detergent is comparatively lower attachment product. Generally
buyers of detergent maintain habitual buying behavior [ CITATION Kot08 \l
1033 ]. Promotional activities play major role to make the product familiar and
create impact on customer consumption pattern. Thus promotional offers
create brand familiarity rather brand assurance. Switching of detergent brand
is very easy thus the objective of this study is to identify the relation between
sales promotion and its impact on consumption pattern of detergent consumers
in Jessore & Khulna city.
I’ve selected this subject for my internship report because growth of sales in
Unilever Bangladesh Ltd. plays an essential role in their sustain operation as well
as economic development of this country. The importance of the study are-
a. It will provide a good view about current market situation of
detergent powder so the company can get some helpful data in doing
their forecast.
b. It will help to find out if there are any significant differences
company should maintain while going for new customer segment.
c. It can be helpful to find out impacts of different sales promotion
tools & later using them to penetrate the market more easily.
d. It will help the company to increase or reduce their budget amount
for future sales promotion.
5
Chapter 2: Literature Review
6
the long time, advertising has an affirmative effect on brand equity whereas
price promotions have a negative effect.
Similarly, [ CITATION Yoo00 \l 1033 ] , recommended that repeated price
promotions, for example price deals are linked to low brand equity, whereas
high advertising expenditure, high charges, good store representation and high
distribution intensity are related to high brand equity.
It is essential for the firm to determine noticeably the objective to be
reached through sales promotion. It is also relevant to distinguish between
immediate and continuing objectives. The immediate ones are generally aimed
at responding to the competition's promotional incentives or getting rid of
stock. Long-term intentions usually emphasis on increasing the market
allocation, the paybacks and on building an adequate image to win renowned
[CITATION Alv05 \l 1033 ].
7
personality, and knowledge of buyer shape the buying behavior, sociologists
suggested that external situation as social group, family, reference groups,
culture, religion of purchasers influence the buying pattern of the consumer.
But in an economy with freedom of choice, the principle of consumer
authority declares that an organization’s continued existence and performance
is in course determined by the consumer, hereafter consumer behavior will
regulate the fate of the business which is why the role of consumers is
dynamic in marketing [ CITATION Kot08 \l 1033 ]
. Therefore the manager should design and develop a marketing tactic
for the products and know the buyers and their positions as well as motives
behind both the need and buying behavior of the consumers even when many
buying decisions concerned only one decision maker and other decisions may
involve several participants, as the originators, influencer, decider and users
[ CITATION Ade06 \l 1033 ].
8
keeping in mind the end goal to structure the business sector mix component
in an ideal way for better situating inside chose marketing portions [ CITATION
Odu96 \l 1033 ]. The buyers' qualities and their impacts serve as a noteworthy
fixing in the purchaser's perception about stimuli and their purchase basic
leadership process, consequently Hawkins et.al, (1989), expressed that the
marketing principal needs to see the customer as an issue solver because of the
way that shopper is a basic leadership unit that takes in data, forms it in light
of existing circumstance, take activities to perform fulfillment that improves
way of life. Clearly customer behavior is the spirit of marketing idea. One
ought not to dismiss certain elements which impact buyer behavior; for
example, social, individual, mental and situational variables are all extensive
way to deal with purchasing behavior affirmation that makes man an
unpredictable creature.
Interestingly, several researchers have also revealed that sales
promotion is expected to repeat purchases if consumers are contented with the
brand that is under promotion; it is more likely that they will also buy it later
after the promotion is over [ CITATION Pea09 \l 1033 ] . However, it was settled
that sales promotions should be handled with care the outcomes differ from
goods or services to consumer sets is the situational aspects play a major role
in the outcome analysis keeping in mind that almost all promotions study are
based on the context of USA markets hence the implications differ if applied
to markets of other countries.
The problems faced by sales promotions on consumer purchasing
pattern in Nigeria are that, whether consumers’ buying behavior towards sales
promotional efforts bring affirmative or negative for the goods concerned
since manufacturing firms operate under nonflexible competitions and
growing cruel challenges that formulate it almost impractical for the
organization to meet up the profitability point and logical return on investment
from shareholder resources. Many firms now focus on their efforts on
promotional strategies and methods to reach the diminishing profit problem.
As promotion is a short-term incentive is to support purchases [ CITATION Kot08
\l 1033 ]and is combined with advertising, it is not all sales promotion
procedures that are aimed at consumers, some are bound for the middle men
9
and several to the organizations’ own sales team [ CITATION Gov06 \l 1033 ]. A
person gets occupied in making decisions of the product to buy which is now a
problem solving process that is reliant on the consumer’s level of participation
which is the level of attention on goods or services. The highly associated
products are those that are inexpensive with fewer society threat attached to
them [ CITATION Wit06 \l 1033 ]Choosing from two brands put someone in a
position to take decisions but where there is no substitute, the person is
literally forced to buy because he is left with no choice to prefer from and it
does not constitute a decision, this type of a no-choice decision is generally
termed as “Hobson’s Choice” [ CITATION Ach00 \l 1033 ] . Due to its present
economic recession in the world at large, this brought about increased
economic pressure on the consumer and a corresponding increase pressure on
the consumers’ disposal income which lead to consumers becoming more
conscious and rational in their purchasing decisions [ CITATION Bue04 \l 1033 ] .
Promotion becomes increasingly important in marketing as it serves as a way
of increasing the demand for products, as a substitute for price competition
and as a way of differentiating similar products [ CITATION Osu97 \l 1033 ].
10
have consequences on consumers’ quality observations and promotions do not
change the long-term purchasing patterns of a well-known brand.
It is needed to search if consumers purchasing behavior towards sales
promotional attempts of the firm’s products are affirmative or negative and
what latent technique of achieving successful sales promotion activities to be
taken. It also stated to identify possibly proffer solution to accomplishing a
thriving sales promotional tactic while the study objectively seeks to know
what extent sales promotion in this organization have earned its objectives of
giving consumers with enticement s aimed at stimulating trial or continuous
consumption of the products, probably win newer consumer segment and
encourage the existing consumers [ CITATION Dar14 \l 1033 ].
Sales promotion includes almost all promotional activities other than
advertising, personal selling and public relations [ CITATION Lar02 \l 1033 ],
consider sales promotion as ‘‘an action-focused marketing event whose
purpose is to have an impact on the behavior of the firm’s
customers.’’[ CITATION Lar02 \l 1033 ] Several important aspects of sales
promotions should be highlighted to fulfill this definition. Firstly, sales
promotional activities absorb some sort of encouragement that provides an
extra incentive to purchase and it represents the major element in a
promotional plan. In his publication, [ CITATION Kot08 \l 1033 ] further added
that these incentives are added to the fundamental benefits supplied by the
brand and temporarily changes its perceived price or value. It is also primarily
regarded as an acceleration tool planned to boost up the selling process and
maximize sales volume [ CITATION Ala14 \l 1033 ] . [ CITATION Sch91 \l 1033 ]
classified sales promotions as active or passive promotions, such as coupons
require lively search on the perspective of consumers, while in-store
promotions such as ‘‘two-for-one’’ involve a limited search, limited to the
store location. Sales promotions have also been dichotomized into price- and
non-price oriented categories [ CITATION Sch91 \l 1033 ]. The end benefit of
price promotions for the consumer is a lower purchase price (e.g., coupons),
while other promotional tools focus on other benefits (e.g., value for money,
like ‘‘two-for-one’’ promotions).
11
It was recognized in literature that simply consumers with repeat
purchases are beneficial [ CITATION Nag09 \l 1033 ]. It is not each repeat
purchasing that is linked to consumer’s promise to a brand. But consumer’s
commitment is significant for repeat purchases. Therefore, business people
need to expand marketing plans that will not only strengthen customer’s
loyalty but also promote repeat purchases. A section of the purpose of sales
promotion is not only to emphasize commitment of consumers but to support
repeat purchases. Consequences of sales promotion on consumer behavior
have been widely discussed in literature [ CITATION Nag09 \l 1033 ] Sales
promotion created effects on various features of consumer’s buying decisions
such as brand selection, purchase period, quantity and brand shifting
[ CITATION Nij01 \l 1033 ]; consumers’ sensitivity to pricing [ CITATION rid06 \l
1033 ].
Nevertheless, whether the consequences of consumer loyalty and
purchasing activities could be moderated by sales promotions has not yet been
examined extensively. Notwithstanding a broad enthusiasm for the
relationship between sales promotion and acquiring behavior, most
investigations of this kind spotlight on the impact of sales promotions on
decision at the time they are offered [ CITATION Del06 \l 1033 ]Just a couple
have researched the slack impact of sales promotions on brand inclination and
the resultant purchasing behavior once the promotion battle is cancelled.
Sales promotions might be in shape of monetary or non-monetary
ones. These types provide both utilitarian and hedonic benefit to the
purchasers. Utilitarian advantages refer to those benefits such as quality,
suitability in shopping, saving in time efforts and cost [ CITATION Luk08 \l
1033 ].Hedonic benefits refer to value expression, entertainment ,intrinsic
motivation, exploration and self-respect [ CITATION Cha00 \l 1033 ]. According
to [ CITATION Luk081 \l 1033 ] money related promotions are enticement based
and transactional in type and provide instant rewards and utilitarian benefits to
the customers. On the other hand, non-monetary promotions supply hedonic
assistances but weaker utilitarian welfares [ CITATION Kwo05 \l 1033 ].
Monetary promotional activities have been stated to be favored over
non-monetary activities across all consumer goods in terms of the capability to
12
obtain purchase intentions [ CITATION Kwo05 \l 1033 ] [ CITATION Luk08 \l 1033 ] ;
Several studies had discussed diverse impact of sales promotion on
consumers’ buying behavior. For instance, [ CITATION Bla89 \l 1033 ]published
that consumer achieve more from price cutting when buying a renowned up-
market brand than a mass market brand. There was an argument in [ CITATION
Pau02 \l 1033 ] that price promotion draws out temporary alterations in brand
and choices of product and purchased amount for well-known brand in mature
market. These types of changes are because up-market brands are connected
with prestigious brand issues with high score of reliability, low chance of
risks, greater concerns for customer’s needs and stronger hedonic advantages [
CITATION Luk081 \l 1033 ]It is not developed in literature whether sales
promotion can enhance or weaken brand preference beyond the time they are
offered [ CITATION Luk081 \l 1033 ][ CITATION Del06 \l 1033 ].
Money related sales promotions could prompt negative effect on brand
inclination and trust. This is on the grounds that money related promotion can
redirect consideration regarding budgetary impetuses which may empower
brand exchanging behavior, build price affectability and make quality measure
less essential [ CITATION Aak96 \l 1033 ][CITATION Ail99 \l 1033 ]contended
further that sales promotion can prompt a noteworthy diminishing in brand
steadfastness. From the above discourses sales promotion appear to have
twofold edge sway on shopper behavior relying upon the purchaser level of
responsibility. A committed buyer is less approachable of sales promotional
efforts. In any case, a less dedicated consumer is remarkably impacted by sales
promotional activities (Mariole and Elina, 2005). These conflicting discoveries
propose a requirement for more research on the impact of sales promotion on
consumer dependability.
2.3.1 Discount:
13
[ CITATION Ban99 \l 1033 ] ; [ CITATION Kop99 \l 1033 ] ; [ CITATION Smi00 \l 1033 ] )
that it promotes short-term boost in sales. Specifically, according to
([ CITATION Bla01 \l 1033 ]; [ CITATION Gil02 \l 1033 ]; [ CITATION Osm11 \l 1033 ]
affirmed that only discounts have a major impact on purchaser behavior while
buying and they are particularly useful in encouraging purchase acceleration
and product tryout. Particularly, in the case of latest or redesigned products it
will ultimately attract new customers who have not at all tried that product,
also those consumers who have tried a competitive product. These results were
partly confirmed by [CITATION Shi05 \l 1033 ]and [ CITATION Obe14 \l 1033 ],
according to them discounts are the very effective in inducing purchase
acceleration, stockpiling, spending more and drawing attention of competitive
buyers. The main drawbacks of discounts are: competitors can simply follow
the pattern and they can diminish the brand image, if they are repeatedly
applied [ CITATION Zmy12 \l 1033 ].
14
Companies include little amounts of free goods which can be supplied
door to door, sent by mail, shared in stores, packaged with another item
[ CITATION Kot06 \l 1033 ]. They are used in encouraging consumers to try a
newer or an enhanced product, and then to perform a test buy and to become
an enduring customer of that particular product [ CITATION Riz13 \l 1033 ]. In
other description, free samples are useful to encourage purchase speeding
([ CITATION Osm11 \l 1033 ]). For latest brands or brand extensions, this is an
efficient, sometimes luxurious way for inspiring consumers to try those
([ CITATION Job06 \l 1033 ]). Also, this method of sales promotion is helpful to
draw attention of competitive buyers. Free samples create impact on consumer
behavior while buying [ CITATION Shi10 \l 1033 ], i.e., they contribute in rising
purchase, while [ CITATION Gil02 \l 1033 ]and [ CITATION Osm11 \l 1033 ]
demonstrated the contradictory outcome.
2.3.4 Awards:
15
as free samples [ CITATION Kot06 \l 1033 ]. They are usually implemented in
stores, at fairs, exhibitions etc., even though they can also be implemented
door to door and on the Internet. According to [ CITATION Shi05 \l 1033 ] this
method is efficient in encouraging consumers to experiment products.
16
According to [ CITATION Sch04 \l 1033 ] price perception is how
consumers see a particular product’s pricing, as high, low or reasonable. They
also specified that awareness of price inequality affects consumers’
perceptions of value and finally their eagerness to buy goods. According to
[ CITATION Moo \l 1033 ] years of exploration concerned with price show both
affirmative and negative observations provide marketplace indications.
Several studies have also portrayed the role of price perceptions as a trait to
success [ CITATION Jia052 \l 1033 ]. When the price perceptions are high this is a
symbol of positive value, prestige and status [CITATION Moo \l 1033 ]
The idea of reference pricing is related to price perceptions. It was
acknowledged by [ CITATION Sch04 \l 1033 ] that reference pricing is the pricing
the consumers use as a foundation for comparison in evaluating another price.
It is assumed through reference pricing that the price perception of a brand of
product is formed. When the consumer plans to purchase a product, he will
evaluate prices reasonably with the reference pricing to decide whether the
price is acceptable or not [CITATION Alv05 \l 1033 ] they also stated that, a result
of consumers’ comparison between the prices and the reference price,
probable losses and gains appear. The consumer recognizes again when the
reference pricing is superior to the observed price. Again, if the observed
pricing is greater than the reference pricing, the consumer experiences a loss.
17
attitudinal loyalty and behavioral loyalty. Behavioral loyalty is linked to
steady purchase behavior of a specific brand; it is the consumer’s obvious
purchase behavior [ CITATION Ril97 \l 1033 ]while attitudinal loyalty provides
idea to a highly constructive attitude towards a specific brand.
In their publication [ CITATION Jon95 \l 1033 ] identified three parts of
brand loyalty: re-buy intention, primary behavior as well as secondary
behavior. According to [ CITATION Jon95 \l 1033 ]re-buy objective indicates to
future intention of the consumer to again purchase the good or service;
primary behavior indicates the sensible re-visiting behavior of a customer;
while secondary-level behaviors indicates the eagerness of a customer to
suggest the product to others and increases customer loyalty through human
relationship [ CITATION Jon95 \l 1033 ]. Loyalty is a deeply held promise to re-
buy or support a preferred product or service consistently in the future, thereby
causing repetitive same brand or similar brand set purchase pattern [ CITATION
Oli99 \l 1033 ]. It was recommended that loyalty comprises of two dimensions:
behaviors and attitudes. Behavioral dimension is characterized by significant
actions resulting from loyalty, while attitudinal dimension indicates to
formative manners as commitment i.e. a desire to sustain a cherished
relationship [ CITATION Che07 \l 1033 ]. More importantly, the consumer’s
approach toward a good/service containing attitudinal preference and
commitment has a better impact on establishing loyalty[ CITATION Che07 \l 1033
].Loyalty thus is desirous by all business managers as it has established that it
is wiser to retain a customer than to make a new one [ CITATION Rus \l 1033 ]
18
loss of sales. Unless proper protective and counter-offensive tactics are
developed and implemented over the longer run, established brands can slowly
lose their loyal customer support. On the other hand, [ CITATION Daw04 \l 1033 ]
affirmed that repeat buying rate that buying a brand during promotion
decreases the likelihood of a subsequent purchase of that brand.
19
Chapter 3: Methodology
20
Construct Variable Source
Opening promotional offers with laundry detergent tutkielma, 2008
delights me
Promotional offers creates interest in me about the [ CITATION Ala15 \l
brands of laundry detergent 1033 ]
Response to I go to the store more often when I know there are [ CITATION YiY11 \l
Promotion promotions in which I am interested 1033 ]
Promotional offers with detergents influence me to buy [ CITATION Ala15 \l
the product 1033 ]
Promotional offers increase my curiosity to experience [ CITATION
the product Nag15 \l 1033 ]
Price discounts make me to go for trial of the detergent [ CITATION Bla01 \l
1033 ]
Price discounts makes me rush to buy the product [ CITATION
Hoe91 \l 1033 ]
Rebates and Rebates make me to visit the store and have the [ CITATION
Discount Offer experience of the product Neh13 \l 1033 ]
I am more likely to buy a product when they give a free [ CITATION Bur98 \l
item to try with the product 1033 ]
Rebates make me feel that price may be cut off for small [ CITATION
quantity of products so it makes me have the product Nag15 \l 1033 ]
Price packs make me more interested to buy one [ CITATION
Nag15 \l 1033 ]
Price Packs make me interested to look for different [ CITATION Riz13 \l
brands 1033 ]
Buy one get one free offer makes me more interested to [ CITATION Riz13 \l
Price Pack buy the product 1033 ]
Small price packs make it useful for small purpose. [ CITATION
Nag15 \l 1033 ]
Bigger size packs make it comfortable for family use [ CITATION
Nag15 \l 1033 ]
Promotional contests makes me more interested to [ CITATION Yan10 \l
experience the product 1033 ]
Free samples makes the brand more popular [ CITATION Shi05 \l
1033 ]
Free demonstration makes it more popular [ CITATION Shi05 \l
Demonstration
1033 ]
I am more likely to buy a product after seeing a [ CITATION Yan10 \l
demonstration of the product being used 1033 ]
I am more likely to buy a product after seeing a sample [ CITATION Yan10 \l
of the product being used 1033 ]
Brand Loyalty I intend to buy this brand in near future [ CITATION
Kum09 \l 1033 ]
I consider this Brand my first choice in this category [ CITATION
Ahm13 \l 1033 ]
I say positive things about this brand to other people [ CITATION Erd04 \l
1033 ]
I will not look for alternative brands if this brand is [ CITATION dAs01 \l
available 1033 ]
After buying a product on promotion, I usually buy the [ CITATION
product again after the promotion is over Kum09 \l 1033 ]
21
I would recommend this brand to someone who seeks my [ CITATION
advice Ahm13 \l 1033 ]
Detergent price rebate made me to use it [ CITATION Bla01 \l
1033 ]
Contests and offers made me to buy it [ CITATION Yan10 \l
1033 ]
Buying Promotional offers influence me on my purchase [ CITATION Ala15 \l
Behavior decision 1033 ]
Sales promotion creates impact on my brand loyalty [ CITATION Yoo00 \l
1033 ]
Different price packs induced me to experience it with [ CITATION Riz13 \l
my convenience 1033 ]
Table 1: Construct Development
22
3.2 Sources of Data
There are two sources through which data will be collected. They are given below.
The primary data for this study was collected from the customers of
laundry detergent living in different parts of Jessore & Khulna metropolitan
areas. The before & after promotion purchasing or switching frequency will be
main observance. Besides they will be observed on other needed areas and
given a questionnaire to fill up. Along with them the practical experience of
working in Unilever and the direct communication with the Brand Activation
Manager, Territory Managers & Area Sales Managers can play a great role. In
addition to them the Unilever database and Expert opinion is also considered
importantly. The required data for this research was collected from the regular
customers of detergents. There was not any specific sample frame available
for this research so convenience sampling was used, as it is also cheap and
easy techniques of sampling. The sample structure for this study consisted of
shoppers at different shopping places and stores etc. and also the parents of
students were included. In the shopping malls the researcher surveyed the
citizens who seemed to be appropriate respondent for this kind of survey. The
parents of nursery school students, who pass time waiting for their kids
outside the school campus, were also our respondents, because they usually
have enough time to spare and can give valuable inputs. Over all there were
300 people who participated in the survey.
Respondents were requested to indicate their conformity or disparity with several
statements on a five point Likert scale from 1=strongly disagree to 5=strongly agree.
23
secondary data in order to compare the detergent market industry of our
country.
24
Chapter 4: Data Analysis & Discussion
25
4.2 Frequency Analysis:
Here in the below mentioned table the detailed mean & std. deviation
through frequency analysis where we can see the tendency of respondents to
each different variables. In all the variables the respondents tend to answer
towards the positive response.
N Mean Std.
Deviation
Opening promotional offers with laundry detergent 300 3.5333 1.17764
delights me
I go to the store more often when I know there are 300 3.5667 1.23178
promotions in which I am interested.
Promotional offers creates interest in me about the brands 300 3.3333 1.19456
of laundry detergent
Promotional offers with detergents influence me to buy 300 3.4333 1.28494
the product
Promotional offers increase my curiosity to experience 300 3.4667 1.31198
the product
26
Price discounts make me to go for trial of the detergent 300 3.6667 1.07676
Price discounts makes me rush to buy the product 300 3.5333 1.25997
I am more likely to buy a product when they give a free 300 3.3333 1.24930
item to try with the product
Rebates make me to visit the store and have the 300 3.3667 1.35586
experience of the product
Rebates make me feel that price may be cut off for small 300 3.4333 1.25864
quantity of products so it makes me have the product
Price Packs make me interested to look for different 300 3.4333 3.4333
brands
Price packs make me more interested to buy one 300 3.3000 1.44347
Buy one get one free offer makes me more interested to 300 3.7000 1.27098
buy the product
Small price packs make it useful for small purpose 300 3.2333 1.08758
Bigger size packs make it comfortable for family use 300 3.5000 1.41066
Promotional contests makes me more interested to 300 3.5667 1.23178
experience the product
Free samples makes the brand more popular 300 3.5333 1.20571
I am more likely to buy a product after getting a free 300 3.3667 1.25331
sample
Free demonstration makes the brand more popular 300 3.2667 1.29143
I am more likely to buy a product after seeing a 300 3.6000 1.17385
demonstration of the product being used
I intend to buy this product in near future 300 3.5000 1.20617
I consider this Brand my first choice in this category 300 3.2333 1.31071
I say positive things about this brand to other people 300 3.6000 1.14501
I won’t look for alternative brands if this brand is 300 3.5667 1.11791
available
After buying a product on promotion, I usually buy the 300 3.6333 1.14159
product again after the promotion is over
I would recommend this brand to someone who seeks my 300 3.8333 1.18754
advice
Detergent price rebate make me to use it 300 3.4667 1.31198
Contests and offers make me to buy it 300 3.5333 1.38635
Promotional Offers creates impact on my Brand Loyalty 300 3.7000 1.10184
Different price packs induces me to experience it with my 300 3.5000 1.23359
convenience
Promotional Offers creates impact on my consumption 300 3.6000 1.17385
pattern
Table 4: frequency Analysis of variables
27
4.3 T-test:
95% Confidence
Std.
Interval of the
Sig. Mean Error
Difference
(2- Differenc Differen
F Sig. t df tailed) e ce Lower Upper
Response Equal
to variances .202 .654 -.886 298 .377 -.08674 .09794 -.27949 .10601
Promotion assumed
Equal
209.08
variances not -.889 .375 -.08674 .09761 -.27916 .10568
3
assumed
Discount Equal
variances 1.651 .200 .286 298 .775 .02858 .10006 -.16834 .22550
assumed
Equal
224.29
variances not .294 .769 .02858 .09723 -.16302 .22018
9
assumed
Equal
207.88
variances not .327 .744 .03499 .10695 -.17585 .24584
1
assumed
Sample Equal
variances .672 .413 .244 298 .807 .02267 .09287 -.16009 .20543
assumed
Equal
217.58
variances not .248 .804 .02267 .09123 -.15714 .20248
4
assumed
Brand Equal .001 .980 -.216 298 .829 -.02160 .09995 -.21830 .17509
Loyalty variances
assumed
28
Equal
204.02
variances not -.215 .830 -.02160 .10048 -.21972 .17652
6
assumed
Buying Equal
Behavior variances .711 .400 -.438 298 .662 -.05737 .13111 -.31539 .20066
assumed
Equal
216.98
variances not -.445 .657 -.05737 .12893 -.31149 .19676
0
assumed
Table 5: t test- gender wise
For the promotion factor we can see that the sig. value is .654 which is
larger than .05, that means should use the t-value given in first line in the
table, which refers to equal variances assumed. Now for the eta square test that
will show the proportion of variance of dependent variable in this case the
promotion explained by the independent variable and that is gender here. So
from the data statistics table we get the number of male N1=103 & number of
female N2=197. The value of t2 is (-.886)2
t2
Eta squared=
t 2+( N 1+ N 2−2)
(−.886) 2
So, Eta squared= = 0.003
(−.886 ) 2+(103+197−2)
The guideline (proposed by Cohen, 1988) for the interpretation of this
value is: .01=small effect, .06=moderate effect, .14=large effect. For our
Promotion variable effect size of 0.003 is very small. It is expressed as a
percentage only 0.3 per cent of the variance in promotion is explained by
gender.
29
For the discount factor we can see that the sig. value is 0.200 which is
larger than .05, that means should use the t-value given in first line in the
table, which refers to equal variances assumed. Here the eta squared value is .
001. It is expressed as a percentage only 0.1 per cent of the variance in
discount is explained by gender.
Now in the discount construct row presented in the output above the
Sig. (2-tailed) value is 0.775. Here, null hypothesis H02 is accepted because the
value of sigma (2 tailed) is 0.775 which is greater than .05. So it means that
there is no difference between male & female on discount impact. Since null
hypothesis is accepted here, the value is not statistically significant.
Similarly for the price pack construct we can see that the sig. value is
0. 851 which is larger than .05, that means should use the t-value given in first
line in the table, which refers to equal variances assumed. Here the eta squared
value is .001. It is expressed as a percentage only 0.1 per cent of the variance
in price pack is explained by gender.
H3: There is difference between Male & Female on price pack impact
Now in the price pack construct row presented in the output above the
Sig. (2-tailed) value is 0. 744. This value is above the required cut-off of .05,
which means that there is no difference between male & female on price pack
impact. Since null hypothesis is accepted here, the value is not statistically
significant.
Then for the sample construct we can see that the sig. value is 0. 413
which is larger than .05, that means should use the t-value given in first line in
the table, which refers to equal variances assumed. Here the eta squared value
is .002. It is expressed as a percentage only 0.2 per cent of the variance in
sample is explained by gender.
H5: There is difference between Male & Female on brand loyalty impact
In the brand loyalty construct row presented in the output above the
Sig. (2-tailed) value is 0. 829. As this value is above the required cut-off of .
05, we can state that null hypothesis is accepted here & alternative hypothesis
is rejected. There is no statistically significant difference in the mean brand
loyalty scores for males and females.
Finally for the buying pattern factor we can see that the sig. value is 0.
400 which is larger than .05, that means should use the t-value given in first
line in the table, which refers to equal variances assumed. Here the eta squared
value is .001. It is expressed as a percentage only 0.1 per cent of the variance
in buying pattern is explained by gender.
H6: There is difference between Male & Female on buying pattern impact
In the buying pattern variable row presented in the output above the
Sig. (2-tailed) value is 0. 662. As this value is above the required cut-off of .
05, we can conclude that null hypothesis is accepted here & alternative
hypothesis is rejected. There is no statistically significant difference in the
mean buying pattern scores for males and females.
31
4.4 Anova:
ANOVA-age wise
Sum of
Squares df Mean Square F Sig.
32
Again A one-way between-groups analysis of variance was conducted to explore the
impact of age on discount construct. The sig. value for discount factor is .838 which is
higher than .05. So, there was no statistically significant difference in scores for the
five age groups [F (4, 295) =.359, p=.838]. The effect size, calculated using eta
squared was .01. Post-hoc comparisons using the Tukey HSD test also indicated that
there is no significant difference among different age groups.
For price pack construct, Subjects were divided into five groups
according to their age (Group 1: 1-25; Group 2: 26-35; Group 3: 36-45; Group
4: 46-55; Group 5: <55).at 95% confidence interval level The sig. value for
price pack construct is .701 which is higher than .05. So, there was no
statistically significant difference in price pack scores for the age groups [F (4,
295) =.548, p=.701]. The effect size, calculated using eta squared was .01.
Post-hoc comparisons using the Tukey HSD test also indicated that there is no
significant difference among different age groups.
Similarly for sample construct, at 95% confidence interval level the
sig. value for promotion construct is .549 which is higher than .05. So, there
was not enough statistically significant difference in sample scores for the five
age groups [F (4, 295) =.765, p=.549]. The effect size, calculated using eta
squared was .01. Post-hoc comparisons using the Tukey HSD test also
indicated that there is no significant difference among different age groups.
Now for brand loyalty construct, the sig. value is .762 which is higher
than .05. So, there was no statistically significant difference in brand loyalty
scores for the five age groups [F (4, 295) =.464, p=.762]. The effect size,
calculated using eta squared was .01. Post-hoc comparisons using the Tukey
HSD test also indicated that there is no significant difference among different
age groups.
Finally, for buying behavior construct, the sig. value is .627 which is
higher than .05. So, there was no statistically significant difference in buying
behavior scores for the age groups [F (4, 295) =.650, p=.627]. The effect size,
calculated using eta squared was .01. Post-hoc comparisons using the Tukey
HSD test also indicated that there is no significant difference among different
age groups.
33
4.4.2 Brand wise
ANOVA-Brand wise
Sum of
Squares df Mean Square F Sig.
34
0.05. So, there was not enough statistically significant difference in discount
scores for the six brand preference groups [F (5, 294) =.522, p=.760]. The
effect size, calculated using eta squared, was 0.01. Post-hoc comparisons using
the Tukey HSD test also indicated that there is no significant difference among
different brands of detergent powder user groups.
For price pack construct, at 95% confidence interval level the sig.
value for discount factor is .808 which is higher than .05. So, there was not
enough statistically significant difference in price pack scores for the six brand
preference groups. [F (5, 294) =.457, p=.808]. The effect size, calculated using
eta squared, was .01. Post-hoc comparisons using the Tukey HSD test also
indicated that there is no significant difference among different brands of
detergent powder user groups.
Similarly for sample construct, at 95% confidence interval level, the sig. value
for discount factor is .749 which is higher than .05. So, there was no statistically
significant difference in sample scores for the six brand preference groups [F (5, 294)
=.536, p=.749]. The effect size, calculated using eta squared, was .01. Post-hoc
comparisons using the Tukey HSD test also indicated that there is no significant
difference among different brands of detergent powder user groups.
Now for brand loyalty construct, at 95% confidence interval level the sig.
value for discount factor is .667 which is higher than .05. So, there was not enough
statistically significant difference in brand loyalty scores for the six brand preference
groups. [F (5, 294) =.649, p=.667. The effect size, calculated using eta squared, was .
01. Post-hoc comparisons using the Tukey HSD test also indicated that there is no
significant difference among different brands of detergent powder user groups.
Finally for buying behavior construct, at 95% confidence interval level the sig.
value for discount factor is 0.906 which is higher than 0.05. So, there was not enough
statistically significant difference in scores for the brand preference groups. [F (5,
294) =.311, p=.906. The effect size, calculated using eta squared, was .01. Post-hoc
comparisons using the Tukey HSD test also indicated that there is no significant
difference among different brands of detergent powder user groups.
35
Chapter 5: Findings
We have seen from the above mentioned consumer based analysis that
in the observed cases there are no gender wise significant differences remain.
It is also seen that there are no significant differences among age groups as
well as different users of different brands of detergent powder. Again it can be
seen that both male & female have positive tendency towards sales promotion.
The data that has been collected from Unilever Bangladesh Limited also
reflect the same thing. In 2014, there was no consumer promotion done for
Rin Detergent Powder. In 2015, there was a small price off sales promotion &
in 2016 there was a big cell phone account recharge promotion been taken.
According to the survey data analysis it is found that consumer
promotions are positively related with brand loyalty. If people are influenced
to buy a promoted brand it is also likely that ultimately they will consciously
or unconsciously become loyal to that brand offering more promotions. So for
this group of people higher number of successful consumer promotions can
prove to be beneficial in both short and long term.
Overall few respondents of the survey have a negative view of consumer
promotion. This could be because they are already loyal or have got used to a
particular brand that they don’t like switching. So the existing companies
might take and putting in good effort to make a deal with them.
We’ve come to know from the data provided by Unilever that the
recently run cell phone recharge campaign for Rin detergent powder was
enthusiastically accepted its customer segment & in return Unilever got a
handsome amount of sales return.
36
a better market share allocation than it used to cover. So this paper agrees with
the decision made by [CITATION Dod78 \l 1033 ] that sales promotions certainly
affect shot-term sales in a positive way. Again from our survey result we can
see that most of our respondents agree to carry on buying even after the
promotion is over mentioned by [ CITATION Pea09 \l 1033 ]
Unilever has assumed to cannibalize its own house brand Wheel by Rin
detergent powder & every year the cannibalization rate supposed to be 3%-
5%. The reason for this assumption is whenever they want to expand the
market of Rin detergent powder; they are trying to grab customers using other
brands of detergent powders. So, in order to capture new segment Unilever
predicts that it might lose customers from its other house brands. Again,
during a sales promotion, it is believed that people using other brands might
get attracted to the promotion & switch the brands for staying longer even
after the promotion is over. For these reasons, Unilever assume the
cannibalization process.
Chapter 6: Recommendation
From the study we get to know that there are no significant differences
between gender groups when it comes to reacting to sales promotion. But to
make a decision whether providing more consumer promotion with detergents
is a good plan or not, the market should not be looked at as one single total.
The detergent market is very large and encompasses diverse groups of people
who think and behave differently. People have clearly different ways of
thinking; therefore, marketers usually deal with different groups of customer
differently. The same should be the case when deciding about consumer
promotions. To make decisions easier yet effective customers have to be
thought of as belonging to two groups. One that gets influenced by consumer
promotion and buy the product; other who do not act on the stimuli of
consumer promotion. Unilever has enough learning to easily segment the
customer base into the two groups mentioned above. This study mainly aimed
to find out the relationship between sales promotion and consumer demand of
37
Rin in Bangladeshi context. So, further study can be conducted to see the
picture in other context.
38
Chapter 7: Conclusion
39
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45
Chapter 9: Appendix
9.1Questionnaire
Questionnaire
3. Signature:
a. Rin b. Keya
c. Wheel d. Chaka
e. Tibet f. Fast Wash
Please put (√) mark in the boxes that best matches with you:
Q# Particulars 5 4 3 2 1
46
9. Promotional offers increase my curiosity to experience
the product.
10 Price discounts make me to go for trial of the
. detergent
47
.
48
9.2 Independent Sample t-test-Group Statistics
Group Statistics
Sex of the
Respondent N Mean Std. Deviation Std. Error Mean
49
9.3 Reliability tables-Case Processing summary
Case Processing Summary
Response to Promotion N %
Excludeda 0 .0
Reliability Statistics
.656 5
Excludeda 0 .0
Reliability Statistics
.678 5
Excludeda 0 .0
Reliability Statistics
.699 5
Excludeda 0 .0
Reliability Statistics
.598 5
50
Case Processing Summary
Response to Promotion N %
Excludeda 0 .0
Reliability Statistics
Excludeda 0 .0
Reliability Statistics
.782 6
Excludeda 0 .0
Reliability Statistics
.916 5
Excludeda 0 .0
Reliability Statistics
.954 31
51
52
9.4Frequency Table-Detailed variables analysis
Opening promotional offers with laundry detergent delights me
I go to the store more often when I know there are promotions in which I am interested.
53
Opening promotional offers with laundry detergent delights me
I am more likely to buy a product when they give a free item to try with the product
54
Opening promotional offers with laundry detergent delights me
55
Rebates make me to visit the store and have the experience of the product
Rebates make me feel that price may be cut off for small quantity of products so it makes me have the
product
56
Rebates make me to visit the store and have the experience of the product
Buy one get one free offer makes me more interested to buy the product
57
Rebates make me to visit the store and have the experience of the product
58
Free samples makes the brand more popular
I am more likely to buy a product after seeing a demonstration of the product being used
59
I intend to buy this product in near future
60
After buying a product on promotion, I usually buy the product again after the promotion is over
61
Promotional Offers creates impact on my Brand Loyalty
62