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Most previous researches on sales
promotions concentrated on the influence of sales promotions (mostly price
promotions) on short-term sales revenue, profits; on purchasing behavior during
and post promotional period. However, few research pays attention to the
long-term effect of promotions on brand loyalty, especially the potential
effect of non-price promotions on brand equity. Therefore, this study
deliberates and contribute to the current literature in the field of promotion
marketing; particularly, it extends the knowledge on how various categories of
sales promotions affect the way consumers choose one brand over the others, and
take the product involvement level into account.

It was suggested that sales promotions
will behave differently regarding their long-term influence on reference price
which is the internal price that consumers perceive based on how beneficial the
product is. Consumers perceive a gain when what they have to pay is lower than
the reference price; and vice versa, a loss is perceived when the reference
price is lower than the observed price1.

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These beliefs were firmly reinforced
by the studies of behavioral shaping by Rothschild and Gaidis, Peter and Nord.

Findings of this study also indicate that consumers respond to sales promotions
with different motives which help explain the underlying reasons why consumers
sometimes are willing to spend an extra amount of money using the promotion
“premium offers” rather than save some money by using “discounts”; and why price
promotions do not always bring about positive results as believed.

Marketers could better actively forecast
the way consumers respond to sales promotions programs by differentiating the
offered benefits of promoted products, and optimizing the benefit congruency.

Additionally, this study proposes that the proneness to sales promotions should
be segmented depending on underlying benefits that consumers seek for instead
of their inclination to deal or their perception towards values. The benefit
approach in segmenting would help drive promotions to targeted consumers who
are most responsive to them. Likewise, grouping sales promotions based on
offered benefits (utilitarian or hedonic) rather than forms of promotions will
be more effective. 

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