The Impact of Promotions on Consumer Behavior

Abstract

In a high velocity environment retail market is growing all over the world. Retailers use all types of promotional activities in order to be differentiated in the market. As a result of population and economic growth, retailers started to widen the application of various marketing in order to influence consumers. Peattie and Peattie (1994) stated that marketing activities are usually specific to a time period, place or customer group, which encourage a direct response from consumers or marketing intermediaries, through the offer of additional benefits. One of these activities is to use promotions (such as: discounts, buy one get one free, coupons, rebates, contests, cash-back offers and loyalty programs) and they directly influence individual to give quick decision and to finalize purchasing process. Since promotions are one of the most noticed marketing activities, promotions can greatly impact any company's market share and sustainability. It is therefore important to understand which promotions consumers prefer and also the effect of promotions on customers and their behavior. (Peattie, 1994)