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.

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.

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

Purpose Encouraging 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/approach The 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. Findings Promotions 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/implications Use 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 implications Promotions 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/value Based on the social exchange and equity theories, this paper investigates the influence of social media promotions on customers’ voluntary behaviors via perceived support.

Identifying the Effective Factors on Brand Equity from Consumers Perspective Using Aaker Model: A Case of Tehran Dairy Products

<p>Brands are differentiating aspect of products. So, identifying the effective factors in creating brand value and evaluating the value is of great importance. The present study, using structural equation modeling, attempts at investigating and explaining effective factors on brand equity of dairy products with Aaker model. Participants are 381 consumers of Tehran dairy products and the variables of advertisement cost, attitude to advertisement, monetary promotions, non-monetary promotions, packaging and distribution span on perceived dimensions of brand equity including brand awareness, brand associations and the perceived quality were measured. The results showed that variable of brand awareness had the highest explanatory role. Also according to the results, the effects of attitude to advertising on perceived quality and brand awareness, packaging on brand awareness, advertising cost on brand association, non-monetary promotions on brand association and distribution spread on brand association were not supported.</p>

How shopping orientation influences the effectiveness of monetary and nonmonetary promotions

Purpose – This research aims to examine whether shopping orientation (experiential vs task-focused) influences how consumers react toward nonmonetary and monetary promotions. It was predicted that promotions are more effective if the promotional benefits are congruent with consumers’ shopping orientation. Moreover, consumers’ financial budget was assumed to moderate the influence of shopping orientation on promotion effectiveness. Design/methodology/approach – The hypotheses were tested in three experiments. Study 1 used a measure of shopping orientation as a consumer disposition and examined its influence on promotion attractiveness. Two further studies used an experimental manipulation of shopping orientation and examined its influence on promotions attractiveness and retailer choice. Findings – The results supported the hypotheses. Task-focused shoppers evaluated monetary promotions as more attractive than nonmonetary promotions. Experiential shoppers evaluated both types of promotions as comparably attractive. Furthermore, experiential shoppers were more likely than task-focused shoppers to choose a retailer offering a nonmonetary promotion over a retailer offering a monetary promotion. Low financial budget, however, reduced the influence of shopping orientation on retailer choice. Originality/value – To effectively use promotions as a tool, marketers and retailers need to know when and how to use them, as well as understand which type of promotion is the most effective. This research implies that retailers will benefit from customizing promotions to fit consumers’ shopping orientations. Furthermore, the findings show that the advantage of such a tailored approach is reduced if consumers’ financial budget is limited.

The Effect Of Promotion Type And Benefit Congruency On Brand Image

Sales promotion is a communication device increasingly used by companies due to its capacity to produce an immediate sales increase. However, although these activities generate good short- term results, they may also have side effects on the customers’ assessment of the promoted brands. The purpose of this paper is to delve into the effects of promotions on the expected product price and brand image. The results of the study reveal that the frequent use of promotions affect consumers’ evaluations of brand image, but the effect depends on the type of promotional tool and the product category. The frequent use of price promotions will lower brand image assessments whereas non-monetary promotions lead to higher brand evaluations. These results are moderated by the product category. Moreover, the expected price of a product is lower after frequent monetary promotions.