Transcript Marketing Research : Discount & Coupon

Marketing Research :
Discount & Coupon
Management Science
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林鼎強
古宛臻
吳育庭
洪毓茹
許弘道
Introduction
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In recent years, Taiwan is suffering from
the period of economic recession, intense
with the market competition, urged the
general merchandise industry to use each
kind of promotion to attract consumers’
purchasing will. We decide to investigate
the relationship with promotion and
consumers’ buying behavior instead of
sales volume. We are trying to figure out
which type of sales promotion can attract
most customers. And the main purpose of
this study is to investigate the customer
satisfaction on sales promotion of
department stores
Literature review (1/5)
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2.1 The definition of price discount
promotion
Priya Raghubir and Kim Corfman (1999)
thought the discount promotion significance
is typically, in decides in quantity to reduce
the price or quantity which increases in the
same price may obtain.
Literature review (2/5)
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2.2 The influence on price discount
promotion regarding to purchasing will
(1) promotion positive argument:
 Fry in and McDougall(1974) research pointed
out, when the discount depth is higher, the
consumer more can think he buys price for
lowest price. Priya Raghubir and Kim
Corfman(1999) believed that, the discount
promotion may increase the value and the
creation purchase economical cause,
promotes the consumer to purchase the wish
and to attract the consumer to purchase.
Literature review (3/5)
(2) promotion negative argument:
 Jedidi, Mela, and Gupta(1999) research
discovered that, the great scope discount
and the many discount number of times can
affect the brand choice and purchase
quantity, even product appraisal.
 Winer(1986) piece believed that, the regular
promotion can endanger the brand, because
this can create the consumer to confuse, and
is different with the anticipated price, this all
possibly causes the brand image not to be
unstable.
Literature review (4/5)
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2.3 some promotion tools that are
commonly used:
1st, gives a discount ticket (coupons): The
manufacturer often can use provides gives
a discount the ticket, strengthens the
product itself value.
Literature review (5/5)
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2nd, direct reduction discount (price-off):
The manufacturer often can provide
compared to a product originally selling
price lower price, this kind of integrity price
falls the discount to be possible to
encourage the consumer to the promotional
material increase purchase quantity, then
wish of the raise again purchase.
3rd, complimentary gift (premium): The
manufacturer often can provide some low
cost or the free goods gives the consumer,
stimulates buys the gas to increase the
sales volume.
Hypotheses Development
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1. The consumer’s purchasing will
does have positive relationship with
promotion.
2. Discount is more attractive than
coupon for consumers
Methodologies
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3.1 Sample and data collection
Our target sample for this search is
students aged from 16~25. We receive
108 questionnaires, 100 of which are
available.
Methodologies
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3.2 Research Process
Methodologies
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3.3 questionnaire
3.3 questionnaire -2
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(English version) :
Your gender □male □female
2. Your age. 10~15 □16~20 □21~25 □26~30 □above30
3. How many average times do you consume in the department store every
half a year? □1~2 □3~4 □5~6 □above 6 times
4. Your average consuming volume each time?
□below 2000 □2000~5000 □5000~10000 □above 10000
5. Consider following condition: if you can get free $100 gift certificate for
every $1000 you spend, would you purchase more in order to get the
coupon?
□Strongly Disagree □Disagree □Neutral □Agree □Strongly Agree
6. Would you increase your purchasing will when the department store is on
sale?
□Strongly Disagree □Disagree □Neutral □Agree □Strongly Agree
7. Consider following condition :
You want to buy a product costs 5000, and there are two kinds of
promotion, “get free $600 gift certificate ” or “10 percent off ” , which
promotion will attract you more? □discount □coupon
8. What is your reason for choosing question7?
1.
Research Analysis and results
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We choose Z test to test whether discount
is more attractive than coupons.
1. Null hypothesis:μ1≧μ2
Alternatives hypothesis:μ1＜μ2
(which thatμ1 is the mean of question5,
and μ2 is the mean of question6)
2. Level of significant α=0.05
3. Criterion: Reject the null hypothesis if
Z>1.645 or Z<-1.645
4. Decision: Since Z=–6.762087< -1.645,
therefore we can reject the null atα=0.05.
5 Conclusion: Discount is more attractive
than coupons.
Research Analysis and results
Research Analysis and results
Research Analysis and results
Conclusion
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From all the research and the
questionnaire above, it is true that the
consumer’s purchasing will does have
positive relationship with promotion.
From this questionnaire, we could find
that 66 percent of survey responsers
agree that when there are promotions
in the department stores, they would
increase their purchasing will.
Conclusion
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According to question 7, there are 85
percent of survey responsers prefer
discount to coupons. Therefore, we
conclude that discount is more
attractive than coupon for consumers.
Reference (1/2)
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1. Barwise, P.（1993）, “Brand Equity: Snark or
Boojum” ,International Journal of Research in Marketing, Vol. 10, No.
1, pp. 93-104.
2. Berkowitz, Eric N. and John R. Walton（1980）, ”Contextual
Inference on Consumer Price Response：An experimental Analysis ”,
Journal of Consumer Research, Vol. 17, December, pp. 349-358.
3. Chen, S., Shih, C., Monroe, B., and Lou, Y. C.（1998）, “The
effects of framing price promotion messages on consumers’
perceptions and purchase intentions”, Journal of Retailing, Vol. 74,
No. 3, pp. 353-372.
4. Davis, S. J., J. Inman, and L. McAlister（1992）, ”Promotion Has
a Negative Effect on Brand Evaluation Or Does It Additional
Disconfirming Evidence”, Journal of Marketing Research, Vol. 29, pp.
143-148.
5. Dickson R. P. and A. G. Sawyer（1990）,”The Price Knowledge
and Search of Supermarket Shoppers”, Journal of Marketing, Vol. 54,
pp. 42-53.
Reference (2/2)
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6. Evans, F. B.,（1963）, ”Selling as a Dyadic Relationship: a
New Approach”, American Behavioral Scientist, vol. 6, May, pp.
76-79.
7. Fry, Joseph N. and Gordon H. McDougall（1974）, “Consumer
Appraisal of Retail Price Advertisement”, Journal of Marketing,
Vol. 38, July, pp. 64-74.
8. Grewal, D., R. Krishnan, J. Baker and N. Borin（1988）, ”The
Effect of Store Name, Brand Name and Price Discounts on
Consumers’ Evaluations and Purchase Intentions” , Journal of
retailing, Vol. 74, No. 3, Fall, pp.331-352.
9. Jedidi, Kamel, Carl F. Mela and Sunil Gupta（1999）,
“Managing Advertising and Promotion for Long-Run
Profitability” , Marketing Science, Vol. 18, Winter, pp. 1-22.
10. Raguhubir, P. and K. Corfman（1999）, “When do Price
Promotions Affect Pretrial Brand Evaluations?”, Journal of
Marketing Research, Vol. 36, No. 2, pp. 211-222.
<THE END>
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