Sales promotion influencing consumer brand preferences/purchases

Abstract

Purpose – This paper aims to investigate whether or not ongoing sales promotion contributed to the declines in “no brand preference” (NBP). Part of an ongoing series investigating the growth of US consumer’s responses of NBP for more than 1,500 frequently purchased consumer product brands. Data were drawn from responses to a very large (1.1 million) online longitudinal consumer questionnaire during 2002-2012. Design/methodology/approach – Additional research, combining this data set with two other major US longitudinal studies, confirmed results. This study focused on determining reasons for NBP increase. Initial data set included use of and influence of 23 in-store promotional tools. These were investigated to determine impact and effect. Findings – Four leading sales promotional tools, based on consumer influence, were coupons, home samples, in-store samples and retail shopper cards. Shopper cards had most influence on purchase of secondary, not primary brands in categories. Shopper cards are a clearly underused promotional tool in building brand preference and sales. Research limitations/implications – Limited to US consumer products only. No attempt made to connect media advertising and in-store media impact or effect. Practical implications – Future investigation should focus on other geographies, synergy between media advertising and promotional techniques. Also, the study is all aggregated data; individual brand investigations should be made. Shopper cards appear to be a major opportunity for secondary brands. More focus on cooperative activities between brands and retailers would benefit both. Originality/value – Paucity of longitudinal customer-view research on shopper cards identifies both manufacturer and retailer opportunities, particularly secondary brands.

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