Non-monetary Promotions Research Articles

Choose a mobile application or mobile website? Different effects of mobile channels on direct and indirect sales

Many firms use mobile applications and mobile websites to increase their product sales. However, little is known about how to optimize these channels for maximum sales. We obtained secondary data from an e-commerce company in China and compared the effectiveness of mobile applications and mobile websites in driving direct and indirect sales. Using the seemingly unrelated regression method, we found that mobile applications are more effective at increasing indirect sales compared to mobile websites but do not have the same positive impact on direct sales. The negative impact of mobile applications on direct sales is mitigated when non-monetary promotions, such as free gifts, are associated with the product. In contrast, the positive impact of mobile applications on indirect sales is enhanced when the product includes monetary promotions, such as discounts. Our study enriches the research into multi-channel promotion and provides practical guidance for firms.

Inaction inertia in online shopping: impact of promotional formats and sequence

PurposeInaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence.Design/methodology/approachThe authors performed two online experiments and analyzed the data by analysis of variance.FindingsThe findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion.Originality/valueThis study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases.

Robots or humans: Who is more effective in promoting hospitality services?

Although consumers’ evaluation and adoption of robotic services have been widely investigated, the effectiveness of robotic sales promotion in the hospitality industry remains unclear. Utilizing the benefit congruency framework, this study proposes that robotic (human) promotion is more suitable for utilitarian (hedonic) benefits. Based on an experiment with and field data provided by a Chinese restaurant chain, this study demonstrates that robots perform better than humans in monetary promotion (e.g., price discounts) that offers utilitarian benefits but not in nonmonetary promotion (e.g., extra dish) associated with hedonic benefits. Moreover, an anthropomorphic language style can reduce the performance difference between robots and humans in nonmonetary promotion. Accordingly, this study’s findings inform hospitality marketers that humans and robots should be in a cooperative rather than substitutive relationship in sales promotion.

How Uncertain Promotions Affect Inaction Inertia in an Online Retail Context

ABSTRACT E-tailers often use different types of promotions to increase consumers’ willingness to buy. However, little research has been done to explore how to reduce inaction inertia caused by online promotions. Inaction inertia refers to the condition in which people who have missed a previously attractive opportunity are less likely to accept the current less attractive opportunity. This study explores how uncertainty, in combination with monetary and nonmonetary promotion types, impacts inaction inertia. The effect of the best possible outcome in an uncertain promotion is also examined. Two experiments are conducted in the context of online shopping to test the effects. The research findings can help e-tailers devise effective promotion strategies.

How sales promotion influences consumers’ physical exercise and purchase behaviors: evidence from mobile exercise app data

Purpose Firms can benefit from designing sales promotion based on the analysis of consumers' physical exercise and purchase data. This study aims to study mobile exercise app data to explore how purchasing a promoted or nonpromoted product affects exercisers’ subsequent exercise and purchase behaviors.Design/methodology/approach Drawing from the theoretical framework of overjustification effect, this study empirically examines the effects of the purchase of promoted – monetary and nonmonetary – or nonpromoted products on relationships (1) between past and subsequent exercise behaviors and (2) between past exercise and subsequent purchase behaviors. Novel data of one million exercise activities and purchase transactions created by 7,517 mobile exercise app users were collected.Findings The results reveal that monetary and nonmonetary promotions have a negative effect on overall consumers’ amount of physical exercise but increase heavy exercisers’ exercise amount. In addition, nonmonetary (monetary) promotion has a positive (negative) effect on consumers’ purchase expenditure but has no moderating effect on the exercise–expenditure relationship.Originality/value This study provides a theoretical framework explaining how to mitigate the dark side of sales promotions while targeting right exercise consumer segments with the right promotion campaigns.

Morning deals make me feel smart: Consumer evaluations of online sales promotions differ by time of day

Technological advances have allowed companies to reach consumers 24 h a day, but a challenge in making use of consumers’ time of day exists. The present research investigates the effect of time of day on consumer evaluations of bonus pack and free gift promotions. Results from four studies reveal that consumers perceive bonus packs as more favorable than free gifts in the morning but not in the afternoon. Consumers’ self-perception as smart shoppers is identified as the psychological process explaining this discrepancy. A new perspective in understanding consumers’ dynamic time-bound evaluations of sales promotion and managerial implications for designing, targeting, and communicating nonmonetary promotions are discussed.

Influence of the perceived benefit of a social network-based sales promotion on the perceived quality of a heritage complex

ObjetivoEste estudio busca analizar la influencia de los beneficios percibidos por el consumidor derivados de dos incentivos promocionales diferentes ofrecidos a través de las redes sociales sobre la calidad percibida del complejo patrimonial.MetodologíaSe realizó un estudio cuasi-experimental entre usuarios en línea, implementando dos estímulos promocionales diferentes. Facebook fue seleccionada como la red social a través de la cual se ofrecieron los incentivos promocionales en el experimento. La muestra se obtuvo a través de un panel de internautas facilitado por Sondea Internet SL.RecomendacionesLos resultados mostraron que los beneficios percibidos por los turistas dependerán del tipo de promoción de ventas ofrecida. Por un lado, se descubrió que el pase VIP gratuito se relaciona principalmente con los beneficios hedónicos que afectan positivamente la calidad percibida. Por otro lado, la oferta 2 × 1 se percibiría como un beneficio utilitario y es probable que ejerza un efecto bastante negativo en la calidad percibida.OriginalidadEste estudio es pionero en el análisis del impacto de los beneficios asociados a diferentes tipologías de promociones de ventas en redes sociales sobre la calidad percibida de un sitio patrimonial.Implicaciones prácticasSe alienta a los gerentes y profesionales del turismo a analizar las características de ciertos tipos de promociones de ventas, ya que cada incentivo promocional tiene diferentes valores y beneficios asociados. Los hallazgos de este estudio sugieren que los gerentes y profesionales implementen promociones no monetarias para mejorar el valor de la marca y la calidad percibida. Por tanto, es primordial que los gestores de las instituciones culturales y los sitios patrimoniales confíen en las promociones de venta que pueden resultar muy útiles si se diseñan con cuidado.

Push–pull analysis: the mediating role of promotion types relative to visit intention to a sports museum

PurposeAlthough sport museums are considered an important sector in nostalgia sport tourism, annual visitations of the major sport Hall of Fames (HoF) have been decreasing, often resulting in operational and financial difficulties for the HoF. The current study examined the relationship between sport museum image, motivation, constraints, monetary and non-monetary promotions (as a mediator), and visit intention among those who have attended or never attended.Design/methodology/approachData was collected from the residents in the Northeast Ohio area via an online survey questionnaire using Qualtrics (N = 1,607). Two sets of data parameters were generated based on consumers previous visitation to Pro Football HoF (visited group n = 754; never-visited group n = 853) and each group's monetary and non-monetary promotion models (total of four models) were analyzed. Descriptive statistics and reliability tests were processed via IBM SPSS Statistics 26 and the structural relationships among the constructs were examined using SmartPLS 3.FindingsAmong all the antecedents, positive perceived image of HoF has been identified as the most significant predictor for both promotions and visit (revisit) intention. Social motivation was found to be a strong driver for visiting a sports museum regardless of the types of promotions. Promotions' mediation effects were found. The monetary promotion between cost constraints and visit intention implied, cost constraints can be mitigated through monetary promotion.Originality/valueThis is the first study examining the role of relationship between image, motivation, constraints and visit intention relative to sport museums. Results provide practical insights for the sport museum marketers and researchers relative to visit intension.

A set-theoretic approach to identifying effective configurations ofpromotional attributes

PurposeMost previous studies have indicated promotional attributes separately (e.g. time pressure, giveaways, price discounts, exclusivity) and found controversial effects. This paper aims to explore how different attributes can be aligned with each other and integrated with different levels of brand strength to influence sales or purchase intention according to the fit logic.Design/methodology/approachBoth field data and controlled experiments are used to understand the effectiveness of promotion configurations. This paper first conducts an exploratory study using qualitative comparative analysis, based on 625 online promotion campaigns. This paper identifies several effective configurations of promotion attributes, leading to the development of two hypotheses. Three experiments are then designed to test the validity of these two hypotheses.FindingsThe results show that strong brands should adopt nonmonetary promotion, whereas weak brands should adopt monetary promotion; exclusivity and time limitation should be used separately.Research limitations/implicationsThis paper provides empirical insights on how promotion elicits sales in terms of the configuration of promotional attributes and brand strength. This paper examines the integrative effect of types of giveaways, promotion duration and promotion target as well as brand strength on promotion effectiveness. Future research can explore other promotional attributes. This study is a first attempt to introduce and apply the set-theoretic approach to address strategic research issues and inform strategic decisions and managerial actions.Practical implicationsThe findings can facilitate marketers’ understanding and predictions of deal recipients’ responses to promotions.Originality/valueThis paper adopts a holistic view to investigate how different promotion attributes interact with one another to stimulate sales. It explores the integrative effect from field data and finds converging evidence through a set-theoretic approach and controlled experiments.

Omnichannel promotions and their effect on customer satisfaction

Purpose This paper aims to investigate whether customer satisfaction varies when presented with different types of omnichannel promotions (shopping goal-congruent vs shopping goal-incongruent and monetary vs non-monetary promotions) and if the effect on satisfaction is mediated by service excellence. In addition, this paper examines whether consumers respond differently to these promotions when shopping for utilitarian or hedonic products or when they have an inherent utilitarian or hedonic shopping motivation. Design/methodology/approach Two online shopping scenario experiments are conducted. Study 1 (n = 1,034) differentiates effects of omnichannel promotions between hedonic and utilitarian product categories. Study 2 (n = 345) contrasts hedonic and utilitarian shopping motivation in the same product category. Findings The findings in this paper demonstrate positive effects from both presenting a shopping goal congruent and a monetary promotion in an omnichannel setting on customer satisfaction. The positive effects are explained by service excellence and are demonstrated to be attenuated in the hedonic product category and for consumers with a hedonic shopping motivation. Research limitations/implications The effect of omnichannel promotions was demonstrated using a scenario-based experimental approach, future research should use field experiments. Practical implications The findings in this paper demonstrate practical implications for a retailer who wishes to optimize its omnichannel promotion strategy across channels and touchpoints. Originality/value To date there is little directions for retailers on how to optimize their omnichannel promotion strategy. This paper contributes to research and practice by demonstrating that shopping goal-congruent promotions (vs in-congruent) and monetary promotions (vs non-monetary) increase customer satisfaction more in an omnichannel context. The effects are enhanced for utilitarian (vs hedonic) products/shopping motivation.

Brand strategies development through sales promotion and endorsement of Small and Medium Enterprises (SME) in West Java Indonesia

Not all business in the market get customer attentions as they deserve, especially for Small Medium Enterprise (SME). It sparks fierce competition between SME to stand out from rivals in the market. Sales promotion is known as one of the most effective method which influence sales volume, especially for SME’s market. The second strategy is having endorsement from a third-party. Previous studies have identified impact of monetary promotion through online and in-store strategy to build strong brand identity without, and so as endorsement. However, there is still inadequate understanding of branding development particularly what specific promotions and endorsement works better for SME, as previous research are mostly based on multinational or big firms which have different characteristics with SME. Therefore, this paper examine the impact of two types of promotions, which are: monetary (vs non-monetary) promotion and celebrity (vs.non-celebrity) endoresement into better customer perceptions about SMEs’ product and brand.

Relationship between Alternative Choice Heuristics and Shopping Value in Mobile Promotion Redemption for Fashion Products

This study was to examine the relationship between consumer choice heuristic, shopping value in using mobile promotions for fashion products, and to predict the reuse intentions of mobile promotions by impulsive versus non-impulsive purchases. A self-administered questionnaire was developed for measuring choice hueristics, utilitarian and hedonic shopping values, and reuse intentions for monetary and non-monetary promotions. A total of 470 responses were obtained from consumers who had purchase experiences with mobile promotions(e.g., coupon or sales)for fashion products. In redeeming mobile promotion for fashion products, consumer choice heuristic consisted of two factors: price-based heuristic and brand-referral heuristic. Result showed that the choice heuristic factors had a significant effect on utilitarian or hedonic value, leading to reuse intentions of mobile promotions. With regards to purchase situation, sample was classified into two groups (impulse vs. non-impulse). For impulse buying situation, dual path models were suggested: the price-based heuristic increased the shopping values, leading to the reuse intentions for both monetary and non-monetary promotions; and the brand-referral heuristic increased the hedonic shopping value, leading to the reuse intention for non-monetary promotions. For non-impulse buying situation, only brand-referral heuristic had a positive effect on hedonic shopping value, influencing reuse intention for non-monetary promotions. This study discussed a practical implication for effectively managing mobile marketing strategies in the fashion marketplace.

A Critical Investigation of Consumer Response for Monetary and Non-monetary Promotions Across E-services

Monetary and non-monetary promotions are very evident in e-commerce. Consumer comes across them daily while making purchase decisions. This study brings in the perspective of how consumer leverages the two types of promotion when they choose to make their e-purchase. Study focuses on three service sectors (ordering food online, booking ride online and booking event tickets) and how consumer response differs across them for evaluating two categories of promotion. Consumer budget also plays an important role. It changes the consumer shopping orientation as well as the evaluation of promotion while making a purchase decision. Study also shows that gender play a significant role while evaluating monetary promotion; however, non-monetary promotions are no different for them. The findings of the study have implications for e-retailers to implement their promotional strategies more efficiently.

Smartphone Brand Loyalty and Consumer Heterogeneity

Research Question: The purpose of this study is to examine the effect of sales promotion and advertisement on brand association and brand loyalty of Samsung smartphones via the analysis of gender and age as moderating variables. Motivation: The motivation for this study emerges from the fact that the effect of sales promotion and advertisement on brand loyalty have not considered the effects of consumer heterogeneity such as age and gender. Idea: The core idea of this study is to verify the effect of monetary promotion, non-monetary promotion, perceived advertising, and individual attitude towards brand association and brand loyalty through the moderate effects of age and gender. Data: This research was carried out in South Jakarta, Indonesia by employing a simple random sampling method and questionnaires distributed to 100 respondents. Tools: Data were analyzed by using Partial Least Square Structural Equation (PLS-SEM) method and the SmartPLS 3.0 software. The PLS-SEM was performed with a two-step approach by analyzing the outer and inner model, afterwards followed by a multi-group analysis to analyze moderating effects of both variables of gender and age. Findings: The findings indicate that non-monetary promotion and individual attitude towards advertising significantly affect brand association while brand association significantly affects brand loyalty. Gender and age-specific analyses indicate that gender differences significantly moderate the influence of individual attitude towards advertising on brand association and age differences significantly moderate the effect of monetary promotion on brand association. Moreover, women, men, younger and older consumers behave differently towards sales promotion. Contribution: This study contributes to the literature by adding empirical evidences in terms of how different consumers respond to sales promotion and advertising as well as further effects on brand association and brand loyalty.

The role of marketing communication mix on Korean customers' coffee shop brand evaluations

PurposeThis study investigates relationships among components of the marketing communication mix, brand identification, brand image, brand love and brand loyalty. The focus of this study is advertisement spending, customers' attitudes toward the advertisement, monetary promotion and non-monetary promotion as marketing communication mix elements.Design/methodology/approachProposed relationships are investigated with 683 previous coffee shop customers, based on a cross-section, online, self-administered survey in South Korea.FindingsResults identify advertising spending, attitude toward the advertisement, monetary promotion, and non-monetary promotion play key roles in influencing brand identification; however, they do not influence brand image. Both brand identification and brand image further influence brand love on brand loyalty.Originality/valueThis study is the first to investigate the marketing communication mix elements in a coffee shop context.

The Effectiveness of Promotional Cues for Organic Products in the German Retail Market

The market for organic products is constantly growing, but successfully promoting them remains a controversial issue. Marketing research shows that organic products such as fruits and vegetables cannot be advertised effectively via monetary promotions (e.g., discounts); however, how promotional effectiveness is affected by other promotional actions (e.g., offering premiums instead of discounts) or the product type promoted (e.g., promoting hedonic products such as organic ice cream instead of utilitarian products) has not been empirically investigated to date. Through a study conducted with 487 German participants, we demonstrate that monetary promotion is less effective for organic than for conventional products. In contrast, non-monetary promotion (via offering increased content) enhances promotional effectiveness more for organic than for conventional products. Increased heuristic processing can explain these findings, as consumers focus more on the heuristic cues offered by non-monetary promotion when confronted with organic, and in particular hedonic organic, products.

The Effect of Non-Monetary Framing Sales Promotion on Customer’s Purchase Intention with Believability of the Deal Offer As Mediation Variables

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Social media promotions and travelers’ value-creating behaviors: the role of perceived support

PurposeEncouraging travelers to create value that benefits firms is of great relevance for companies that operate in online contexts. The purpose of this study is to investigate, focusing on online travel agencies, how monetary promotions (i.e. economic incentives) and non-monetary promotions (i.e. draws and contests) conducted through social media enhance customers’ voluntary behaviors (i.e. suggestions, word of mouth, and social media interactions) that go beyond brand choice, which may provide benefit to firms.Design/methodology/approachThe research model draws on the social exchange theory, equity theory and the concept of perceived support – how customers perceive that companies care about their well-being. The authors collect information from 491 users of online travel agencies in Spain and test their hypotheses using partial least squares. They also evaluate the existence of indirect effects.FindingsPromotions developed by companies make customers more likely to perform, voluntarily, the helping behaviors of suggestions, word of mouth and social media interactions, through the influence of perceived support.Research limitations/implicationsUse of a single survey to collect measures and restriction of the sample to Spanish-speaking travelers suggests caution in generalizing the results. Future research could investigate other company-initiated actions and other value-creating behaviors of travelers.Practical implicationsPromotions help develop perceived support for customers, which leads to voluntary, valuable traveler behaviors. Promotions may be also sufficient to trigger some customer behaviors, such as word-of-mouth.Originality/valueBased on the social exchange and equity theories, this paper investigates the influence of social media promotions on customers’ voluntary behaviors via perceived support.

Developing in-store brand strategies and relational expression through sales promotions

This paper explores in-store sales promotion as a tool for manufacturers in developing in-store relationships with consumers. Our empirical application in the ice cream category examines the effects of sales promotions (non-monetary vs. monetary) on perceived brand expression. The results show that non-monetary promotions generate more relational benefits than price-based promotions. They appear to be a significant lever in developing relationships with consumers within the supermarket retail channel, where brands have no formal control over their distribution. Such sales promotions convey brand willingness to develop relationships during in-store encounters. This research identifies sales promotion programs as tools for influencing the consumer–brand relationship within the supermarket retail context.

The Understanding of Sales Promotions’ Influence on Food and Beverages Products in Malaysia

The purpose of this research is to identify the relationship between the types of sales promotion in food and beverage products and the influences of sales promotion on customer’s decision making. The population of the research is made up of 150 respondents from Kuala Lumpur. The paper used convenience sampling for the selection of the respondents. Questionnaires were distributed to the respondents for statistical analysis through social media platform. The research utilized Statistical Package for the Social Sciences (SPSS) to analyze the data collected. The research revealed a number of findings including such as: Monetary promotions in food and beverage products have positive influences on customer’s decision making; Non-monetary promotions in food and beverage products have positive influences on customer’s decision making. Based on the findings, some conclusions were made most importantly to understand which sales promotion will bring more values and benefits.