Consumers' Responses to Sales Promotions of Fast Moving Consumer Goods in Nepal

Abstract

This research study examined consumers' perceptions of products they purchased under sales promotion offers, and their effects on repurchase intentions of the same products after the end of the offers. The research began with an exploratory study of marketers' observations of the effectiveness of consumer sales promotion programs, and consumers' opinions regarding the products. The findings of this exploratory research were used to develop hypotheses and survey instrument. A consumer survey was carried out to empirically test the effectiveness of sales promotion offers on three perceptual dimensions viz. quality, price and fun; and the impact of these perceptions on repurchase intentions. The research revealed that consumers perceived that they receive quality and price benefits but not hedonic benefits from the products purchased under product and prize based sales promotion offers. The sales promotion offers neither encouraged repurchase intentions nor substantial short term brand switching. Offering a gift attached to the product appeared to reward loyal consumers only. These findings have implications for marketers' decisions to offer consumer sales promotions.