The Efficiency of Monetary and Non-Monetary Sales Promotions on Brand Preference; a Case of Albanian GSM Companies

Abstract

Sales promotions have been growth since 1960 and today it has become one of the main marketing tools in the promotion mix. The companies heavily apply monetary sales promotions as well as distribute non-monetary advertising items such as umbrellas, pens, calendars, etc. in order to pull customers and stimulate them toward their products or services. In Albania, particularly GSM companies rely on both types of sales promotions. The purpose of this study is to reveal which type of sales promotion is mostly effective on brand preference. In this regard, efficiency of monetary and non-monetary sales promotions has been measured through (SEM) structural equation modeling method. Findings indicate that the efficiency of monetary sales promotions is significantly higher than non-monetary ones, even though non-monetary sales promotions appeal to customers.

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