A Study of Impact of Sales Promotions on Brand Switching and Stock Piling Behavior of Consumers for Electronics & Apparels Industry

Abstract

Sales is the only function that brings revenue to a firm. Sales Promotions is a frequently used tool by companies to bring an immediate increase in sales revenues. This tool has been a subject of various marketing studies. Most of these focus on learning its short term and long term effects on the consumer behavior. This study is also a step in the same direction. The paper aims at analyzing the effectiveness of this action and is focused on marketing strategy to influence the consumer behavior and its impact on their Brand Switching and Stock Piling Behavior with special reference to Apparels and Electronics industry. The underlying objective is to study the sales response of the consumer to the temporary price reduction. Primary data were collected using a self-designed standardized questionnaire. Data were analyzed using statistical tools of correlation coefficient as well as regression methods to test hypotheses with levels of significance. The key findings of the research on sales promotion are that Brand Switching is low for apparels and high for electronics while the Stock Piling Behavior was observed to be strong for apparels and negligibly low for electronics.