Abstract
This paper aims to analyze the influence sales promotion types have on the relationship between perception of financial risk and perception of utilitarian and hedonic value on consumer purchase intentions. To this end, an experiment was conducted involving 589 participants divided into two groups defined by distinct scenarios in which the sales promotion type (monetary vs. non-monetary) was manipulated. The working hypotheses predicted a direct and positive relationship between the perception of (hedonic and utilitarian) consumption value and purchase intention for a promoted product and a negative relationship between the perception of consumption value and the perception of financial risk. In addition, it was supposed that the sales promotion type would moderate these direct relationships and that a monetary promotion would have a stronger effect on the relationship between purchase intention and perceived product utility, whereas a non-monetary promotion would have a stronger effect on the other relationships (hedonic value and financial risk perceptions). Analysis of the outcomes supported the proposed hypotheses.
Highlights
Despite being widely used in the management sphere (Bertrand, 1998; Wierenga & Soethoudt, 2010), sales promotion has scarcely been explored in the academic field (Alvarez & Casielles, 2005; D’Astous & Landreville, 2003)
Aiming to reduce the aforementioned gap in the literature, this study proposes to examine the moderating effect of sales promotion type on the relationship between perceived consumption value, perceived financial risk and purchase intentions for a promoted product
The results show that the monetary promotion had a stronger influence on consumer purchase intentions than non-monetary sales promotion, confirming H1 and H2
Summary
Despite being widely used in the management sphere (Bertrand, 1998; Wierenga & Soethoudt, 2010), sales promotion has scarcely been explored in the academic field (Alvarez & Casielles, 2005; D’Astous & Landreville, 2003). The same organization projected investments of $24 billion in sales promotion activities only on social networks for 2015 (Paglia, 2010). This projection exceeds the forecast that advertisement will have investments of $14 billion. Some gaps can be observed in the literature, especially regarding the analysis of moderators that may either enhance or minimize the impact of sales promotion on consumer behavior (Alvarez & Casielles, 2005; Freo, 2005; Low & Mohr, 2000). Inquiry into how sales promotion type results in different consumer responses becomes essential (Chandon, Wansink, & Laurent, 2000; Kwok & Uncles, 2005; Taylor & Neslin, 2005)
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