The Influence of Sales Promotion on Consumer Brand Loyalty; A Case Study in Oshogbo in Osun State
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To find out if sales promotion is able enough to stimulate demand and increase sales in a particular market area.
- To determine the relationship between sale promotion and sales turnover of the firm.
- To give meaningful suggestion where necessary for the improvement in cases where sales promotion adopted are not viable.
- To ascertain Which of the sales promotional tools or techniques can induce consumers towards trying new product instead of not having the current ones
- To ascertain the relationship between sales promotion and consumer brand loyalty.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical Basis: Behavioral Learning Theory
Many sales promotion studies have been classified as consumer research or consumer behavior studies. The main emphasis has been on the identification of frequent and infrequent users of promotions (Chandon, 1995). Theory-oriented research has used the perceived risk theory, the economic theory, attribution theory, and psychographics as base theories to identify the possible reasoning behind the level of frequency (usage) of sales promotions. The proposed research applies theoretical concepts from behavior learning theory in an effort to explain purchase behavior, the relationship between different types of sales promotions, and brand loyalty. How different types of sales promotions relate differently to brand loyalty will be investigated. The term behaviorism is rooted in several disciplines psychology, philosophy, and biology. According to behaviorists, learning can be defined as a relatively permanent change in behavior brought about as a result of experience or practice; thus learning is the result of the application of consequences (Huitt & Hummel, 2006). Behaviorism offers a comprehensive view of learning, and thus, an explanation for behavior. “One of the central ideas of behaviorism is that people are essentially biological organisms, and like other biological organisms, innately capable of responding to the environment in which they live” (Slife & Williams, 1995, p. 25). Behaviorism consists primarily of three elements: stimuli, responses, and reinforcements. The stimulus is a quality that influences an action or response. The reinforcement is a way of making the connection between the stimuli and the response conditioned. When the conditioned behavior is no longer reinforced, extinction occurs instead (Pavlov, 1927). The most relevant types of behavioral learning theories include
- contiguity theory
- classical or respondent conditioning theory, and
- operant or instrumental conditioning theory.
Contiguity Theory
Contiguity theory is based on the work of Guthrie (1930, 1935). It proposes that any stimulus and response connected in time and/or space will tend to be associated (Huitt & Hummel, 1999). The following are the principles of this theory:
- In order for conditioning to occur, the organism must actively respond (i.e., do things).
- Since learning involves the conditioning of specific movements, instruction must present very specific tasks.
- Exposure to many variations in stimulus patterns is desirable in order to produce a generalized response.
- The last response in a learning situation should be correct since it is the one that will be associated. According to Guthrie (1930, 1935), in contiguity theory, rewards or punishment play no significant role in learning since they occur after the association between stimulus and response has been made. Since sales promotions are primarily based on rewarding the customer for their purchase, this theory will not be discussed in depth.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the influence of sales promotion on consumer brand loyalty a case study in Oshogbo in Osun state
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items; things the researcher is interested in getting information the influence of sales promotion on consumer brand loyalty a case study in Oshogbo in Osun state. 200 staff of lager beer in Oshogbo in Osun state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study The influence of sales promotion on consumer brand loyalty a case study in Oshogbo in osun state. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of sales promotion on consumer brand loyalty
Summary
This study was on The influence of sales promotion on consumer brand loyalty a case study in Oshogbo in Osun state. Three objectives were raised which included: To find out if sales promotion is able enough to stimulate demand and increase sales in a particular market area, to determine the relationship between sale promotion and sales turnover of the firm, to give meaningful suggestion where necessary for the improvement in cases where sales promotion adopted are not viable, to ascertain Which of the sales promotional tools or techniques can induce consumers towards trying new product instead of not having the current ones and to ascertain the relationship between sales promotion and consumer brand loyalty. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of lager beer in Osogbo, Osun state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made production managers, marketers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The results of this particular study are quite relevant with those similar studies (Nagar, 2009). The summary of the results can be concluded that the sales promotion increases the consumer loyalty and as the sales promotion expenditures increases so does the consumer loyalty. In practicality, this increasing trend has also opened many dimensions of customer response. The consumers are more prone to sales promotion and exhibit switching behavior to other to take the advantage of the promotional discounts. As the results also indicate that, the monetary savings have high impact on the consumer loyalty as compare to the other factors. But it does not mean that tendency of being loyal or switch between the networks is due to the quality of services during the time period of sales promotion.
Recommendation
That manufacturers and sellers should continue apply price promotion, bonus and free sample because of their robustness influence on consumer loyalty.
Manufacturers also need to pay more attention to their customers in order to understand their needs and expectations as well and to keep in touch with them.
Customer’s satisfaction surveys should be conducted in a systematic and continues way.
References
- Abiodun, A. J. (2014). Determinants of Customer Loyalty and Recommendations to Others in the Nigerian Telecommunication Industry. ANVESHA 5(3):25-36.
- Abubakar, A.R. (2014). Customer store loyalty in the context of customer perceived value in Saudi Arabia. Journal of Contemporary Research in Business. 5(12), 442–460
- Adepoju, A. S. (2012). The Determinants of Customer Loyalty in Nigeria’s GSM Market. Intl J. Business Soc. Sci., 3(14); 673-682.
- Adrian, P. (2004). Introduction to Marketing Theory and Practice. 2nd Edition, United State: Oxford University Press Inc.
- Aham, A.(2008). Dimensions of Marketing. Nigeria: Okigwe, Avan Global Publication. P. 58.
- Ailawadi, K.L., & Neslin, S.A. (2008). The effect of promotion on consumption: buying more and consuming it faster. Journal of Marketing research, 35, 3, 390-398.
- Anuraj, N. (2018). Effect of Sales Promotion On Consumer Behavior. Bachelor thesis of Seinäjoki University of Applied Sciences.
- BagavathiPillai, R. S. N. (2007). Modern Marketing. Revised Edition. New Delhi: S. C hand and company Ltd.
- Banabo E, & Koroye, B. H. (2011). “Sales Promotion Strategies of Financial Institutions in Bayelsa State”.Asian J. Bus. Manage. 3(3): 203- 209.
- Blattberg, R.C., & Neslin, S.A. (2000), Sales Promotion, Concepts, Methods, and Strategies. Englewood Cliffs, NJ: Prentice Hall. Cook, A. (2003).How to cash in on the coupon craze. Incentive Business. Jun/Jul: 3
- Darke, P.R.. (2000). Effects of pricing and promotion on consumer perceptions: it depends on how you frame it. Journal of Retailing, 81(1); 35- 47.
