Usage pattern of sales promotion in the Korean market

Abstract

Purpose - An increasing number of retailers and manufacturers are relying on sales promotions to boost sales, extend market share, and clear excess inventory. Previous research on sales promotions primarily focus on the effect of this approach on two main perspectives: firm level, which includes sales, market share, and firm performance; and customer level, which involves perceived quality of product/service, change in reference price, and purchase/repurchase intention. To help subsequent and new research on these issues, this research note focuses on finding patterns of sales promotions conducted in various sectors of industry in the Korean market. Methodology - A survey on the sales promotion usage pattern of a company was conducted with 74 decision makers in various companies followed by a small group interview. Findings- Results indicated that price off and bonus pack sales promotions were the main types of sales promotions conducted and considered in most sectors of industry in Korea. Decision makers were also found to have knowledge on the long-term disadvantage of sales promotions. Despite this advantage, two main reasons were pointed out for the continuing conduct of sales promotions: reaction to the sales promotions of competitors and expectation of other members of the organizations. Conclusion- This research on the usage pattern of sales promotions in Korea can contribute to the choice of the next sales promotion research topic in Korea and in other nations.