How do Sales Promotion Strategies Impact on Consumer Buying Behaviour in the Retail Industry? A case study of TESCO in the UK

Author: JEWEL CHOWDHURY

Basically, promotion is first introduced in the 4Ps of marketing. The four Ps represents the marketing mix (Product, Price, Place & Promotion) and the promotional mix is the important term used to explain the set of tools of the business. This is applied to achieve benefit of its products and services from its consumer and the followings are (Advertising, Public relation, Direct marketing, Personal selling and Sales promotion)

On the other hand consumer behaviour is another important aspect in the retail business sector. Consumers are not always normal/simple buyer. There are many aspects involved in buying decision process. They hold strategic shopping manner at the time of buying a product or services from a company.

The main aim and objective of this research is – How do sales promotion strategies impact on consumer buying behaviour?

Sales promotion has a great impact and influence on consumer buying behaviour in the UK super market – based on Tesco retail store.

The role of sales promotion on consumer buying behaviour: the sales promotion role has a great impact on consumer buying behaviour. It has a great and strong significance role on retail industry sector.

Strategic use of sales promotions in the retail industry: Basically sales promotions strategies used as a short-term technique tool which principal objective is to influence the ultimate buyers to try a brand or change their mind to another brand.

Sales promotion represent to discount a brand, it can be directly or indirectly, directly price reduction or indirectly through coupons & premiums. But when the industry withdraws the sales promotion, then the normal price should have had a inferior value and the result of this should have had a negative impact on consumer buying behaviour.

On the other hand, if there are many negative views, the sales promotions have a strategic role to play in the promotion mix. It has been viewed as short-term tactical tools that can be used offensively to induce the trial of new products or defensively for established products to retain the shelf space for holding the loyal consumers. Sales promotions are used in the UK super market to drive the customers into loyal customer or the prospect buyer. There are many sales promotion objectives which are geared to stimulating the consumer buying behaviour either to use a product for first time or to encourage use on a routine basis.

Loyalty and retention programmes: There is no doubt about the implication of sales promotional to build up loyalty and retention. It had a remarkable promotional development in the recent year (club card is one of loyalty programme in the TESCO super market in the UK)

Overall Findings and Analysis

On the Basis of Few Questionnaire the Researcher Found the Following Sales promotion Results which will have impact on Consumer Buying Behavior.

Questions are the following (Here Results Come on the basis of Respondents Preferences These are Strongly Agree, Agree, Neutral, and Disagree and Strongly disagree)

Question No 1

I used to shopping at Tesco very frequently.

Question No 2

I encouraged by the different Sales Promotion Such as (Buy one get one free, Discounts, Coupons, Vouchers ,Loyalty Card points)

Question No 3

I pass along positive information to friends and others about TESCO Sales Promotion

Question No04

I switch over the brand and product from the original brand because of sales promotion

Question No 05

I use the Club Card frequently while shopping at TESCO

Question No 06

I rely and trust on sales promotion are providing by the Tesco Super Store

Question No 07

The Super Market provide its sales promotion at the time it promises to do so

Question No 08

Techniques associated with the sales promotion (Statements and Explanation are visually appealing). This appeal influences me to buy.

Question No 09

The Sales promotion tools of the Supermarket understand my specific needs and wants

Question No 10

I like to find out of new sales promotion when you shopping at TESCO

Overall Result is Represents below

Total Respondents:120

Summary of Overall Findings and Analysis

The overall findings of the consumer view and the researcher explain the briefly the above findings

The above table shows the result of few related questions of the sales promotion .Basically the table represents the impact of sales promotion strategies on consumer buying behavior in the UK supermarket. In the first question that half of the respondents strongly agreed to buy at Tesco very frequently and 25% respondents agreed on this question that they used to shopping at Tesco very frequently. Thus it suggests that customers were loyal to TESCO super market. In the second question ,the respondents were strongly influenced by the different sales promotion .It was a highest percentage by the impact of sales promotion .The percentage was remarkably highest (79%)which indicated the highest influence of the consumer on the basis of different sales promotion.

Third Question indicates that 33% respondents strongly passed along positive information to the friends and others about TESCO sales promotion on the other hand 12% respondents had a negative perception about this matter and they did not pass along information to others. By the influence of the sales promotion ,21% respondents changed their mind strongly to switch over the brand and 50% respondents agreed on this statements in the question no 4.In the question 5 consumers used their Club Card in a positive manner .Here 17% consumers strongly agreed that they used their Club Card at the time of Shopping, 33% also agreed generally .On the other hand dramatically 50% respondents disagreed using Club Card .It means that there was an equal number of respondents who agreed and disagreed. Question no 6 represents that most of the customers relied on sales promotion provided by the TESCO. Here neutral respondents were 0%,diagree were 21%.Thus it indicates that customer were very loyal of Tesco Supermarkets sales promotion and Tesco super market were maintaining a strong customer relationship management. In the seventh question it shows that 33% respondents agreed on the statement of super market provided its sales promotion at the time of to do so .Overall 58% respondents had a negative perception on this statements. In the question number eight shows that 17% respondents were influenced by the sales promotion tools and it made them buy. And 67% consumers agreed on this statement. It means that techniques associated with the sales promotion appeals influence the customer in a positive way to buy the super market product. In the question number nine it indicates that 75% respondents agreed that sales promotion tools of the supermarket understand their specific needs and wants .17%respondents disagreed on this statement. Question no 10 states that 66%customers were used to find out new sales promotion while shopping at TESCO .On the other hand 17%were neutral and rest of 17% respondents disagreed to find out new sales promotion when they were shopping at Tesco .Thus it indicates that majority of the respondents have had a positive view on this statement.

The research shows that discount is the highest expected sales promotion tools for the consumer. The study focuses the significant attitude, perception of the consumer behaviour and it reflects the consumer loyalty on the basis of customer relationship management. Here the findings and analysis have discovered the vital reason that impacts positively on consumer buying behaviour and in the sales volume.

Article Source: http://www.articlesbase.com/sales-articles/how-do-sales-promotion-strategies-impact-on-consumer-buying-behaviour-in-the-retail-industry-a-case-study-of-tesco-in-the-uk-3597290.html

About the Author

Jewel Chowdhury.

BBA(DU)BD,MBA(DU)BD,PGD(UK),MBA(UK)