Title

SALES PROMOTIONS EFFECTS ON BRAND LOYALTY

Author

Marife Mendez, Nova Southeastern UniversityFollow

Date of Award

2012

Document Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

Department

H. Wayne Huizenga School of Business and Entrepreneurship

Advisor

Mike Bendixen

Committee Member

Russell Abratt

Committee Member

Bay O'Leary

Abstract

In this dissertation the field of promotion marketing was examined by studying the impact of sale promotions on brand royalty. More specifically, for products with different levels of involvement, the study assessed how effective different nonmonetary and monetary promotions are at retaining brand loyalty.

Two research questions were posed: (a) Will the effect of nonmonetary and monetary promotions on brand loyalty vary according to the extent of hedonism or utilitarian benefits for low and high involvement products? (b) Will the preference for nonmonetary or monetary promotions on brand loyalty have a greater or lesser effect for low and high involvement products? It was theorized that the effect of nonmonetary and monetary promotions on brand loyalty would vary according to the extent of hedonism or utilitarian benefits for low and high involvement products (H1a and H2a). The second set of hypotheses (H2a and H2b) posited that preference for nonmonetary promotions would have a greater on brand loyalty for both high and low involvement products.

A questionnaire consisting of 36 questions provided the data that was collected from 114 subjects. Two product categories were chosen for the study: deodorant (high involvement) and laundry detergent (low involvement). For each product category, regression was used to explore the relationship between the indirect variables and the dependent variable -- brand loyalty. The results did not show support for any of the hypotheses; yet, they offer valuable information on sales promotions.

Five important findings are discussed:

1. Monetary promotions are perceived to provide more utilitarian benefits.

2. Nonmonetary promotions seem to provide more utilitarian benefits than hedonic benefits.

3. "Preference for Gifts," a nonmonetary promotion, could affect negatively brand loyalty.

4. "Buy 2 get 20% off," a monetary promotion, could have a positive impact on brand loyalty.

5. Involvement has a positive relationship with brand loyalty.

NSUWorks Citation

Marife Mendez. 2012. SALES PROMOTIONS EFFECTS ON BRAND LOYALTY. Doctoral dissertation. Nova Southeastern University. Retrieved from NSUWorks, H. Wayne Huizenga School of Business and Entrepreneurship. (76)
https://nsuworks.nova.edu/hsbe_etd/76.