Influence of Sales Promotion on Consumer Purchase Decisions_Timothy Mahea

INFLUENCE OF SALES PROMOTION CAMPAIGNS ON CONSUMER PURCHASE DECISIONS:

A CASE STUDY OF NAKUMATT SUPERMARKETS

BY

MIKE S. NGOLANYA D33/10192/02 TIMOTHY K. MAHEA D33/9067/03 EVA N. NG’ANG’A D33/8697/03 FLORENCE S. AMOLLO D33/8807/03 HARRIET W. KARUIKI D33/8940/03

SUPERVISOR: MRS. OMBOK

A MANAGEMENT RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF BACHELORS DEGREE

IN COMMERCE, SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI

APRIL 2006

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DECLARATION

This management research paper is our original work and has not been submitted in any

other university or learning institution for the award of a degree qualification.

NAME SIGNATURE DATE

MIKE S. NGOLANYA ……………… …….....……..

TIMOTHY K. MAHEA …………….... ……...………

EVA N. NGANGA …………..….. ……….……..

FLORENCE S. AMOLLO …………….... ……….……..

HARIET W. KARIUKI ……………… ………..…….

This management paper has been submitted for examination with my approval as the

University Supervisor

Signed ……………………………….. Date…………………………..

MRS. MARGARET OMBOK

DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS

UNIVERSITY OF NAIROBI

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DEDICATION

We wish to dedicate this research project to our parents for their inspiration, motivation,

patience and their financial support without which, this research would not have been

possible.

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ACKNOWLEDGEMENT

We are indebted to the following people without whom this research paper would not

have been successfully completed.

Mrs. Margaret Ombok, for her availability, guidance, support, appraisal and perseverance

throughout the research period.

Miss Catherine Mugo, Marketing Director of Nakumatt Holdings for her kindness and

willingness to provide the information required.

All the respondents who furnished us with all the data that made this research possible.

Mr. Fred Kyalo, for teaching us how to use SPSS in the data analysis.

Most importantly, we thank the Almighty God for giving us the strength to accomplish

the research.

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ABSTRACT

Supermarkets play a significant role in the country as that of availing goods and services

to the consumers. Because of the various challenges that they face, there is an increasing

need for the supermarkets to attract as well as retain these customers. According to Fill

(2002) sales promotion is a sure way of increasing store traffic and loyalty of the

consumers to the company. The aim of this study was to investigate the extent to which

the sales promotion incentives offered by Nakumatt influence the purchase decision of

consumers.

In order to achieve this objective, a population of all the current customers of Nakumatt

Holdings was taken. Since there are 17 branches of the supermarket country wide

(www.nakumatt.com ), by the use of convenience sampling technique, 2 branches that are

located in the NCBDA were selected with a further random selection of 100 respondents

from the branches.

A semi-structured questionnaire was used to collect the primary data. The questionnaire

was divided into two parts. The first part was used to determine general information of

the shoppers and the second part was used to determine the extent at which the sales

promotion incentives influenced the consumers’ purchase decision. The researchers

administered the questionnaires personally to facilitate clarification of the questions.

A response rate of 73% was achieved; collected data was analyzed by frequency tables,

percentages, standard deviation and mean tables. Major research findings indicated that

38% were females whereas the males accounted for 35%. Majority of the consumers

were aged below 35 years. The findings also indicted that sales promotion tools were

used to a large extent in the various levels of the consumer purchase decision process.

Most of the consumers were very satisfied with the purchases they made based on the

sales promotion incentives and they talked to friends and relatives about their

experiences. On the other hand, the few consumers that found themselves dissatisfied

with their purchases requested for refunds and complained at the customer service desk in

regards to the dissatisfying factor.

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TABLE OF CONTENTS

CONTENT PAGE

Declaration...........................................................................................................................ii

Dedication ………………………………………………………………………………..iii

Acknowledgements......................................................................................................... ...iv

Abstract............................................................................................................................. ..v

Table of contents.................................................................................................................vi

List of tables........................................................................................................................ix

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study...........................….……..………………..………….….1

1.1.1 Sales promotion campaigns…..............……….................……….…..……..2

1.1.2 Consumer purchase decisions…............………………………………….…3

1.1.3 Background of supermarkets in Kenya….…...........……………..………….4

1.1.4 Nakumatt holdings…..........………….….…………………………………..6

1.2 Statement of the Problem.................………………………………………………8

1.3 Objectives of the Study….……………………….………………………………..9

1.4 Importance of the study…………..…….………………………………………..10

CHAPTER TWO: LITERATURE REVIEW

2.1 Consumer Behaviour…………….……………….………………………. …….11

2.2 Purchase Behaviour……….....................…………….………………………….12

2.3 Purchase Decision…………....………………………….……………………….13

2.4 Sales Promotion ……………....…………………………………………….…...16

2.4.1 Nature and scope of sales promotion………....………..………….……….17

2.4.2 Consumer-oriented sales promotion………....…………………………….18

2.5 Influence of sales promotion on consumer purchase decision…………..……….21

2.6 Summery of literature Review………………………………….……...…...........23

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CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research design ………...........................…………………………………....….25

3.2 The Population.............…………………………….……………………...……. 25

3.3 Sample and sampling design…..............……………………...…………..….…..25

3.4 Data collection………………..............………….……..………………....……..25

3.5 Data analysis…………………..............….…….………..............................……25

CHAPTER FOUR: DATA ANALYSIS AND FINDINGS

4.1 Introduction............................................................................................................27

4.2 Demographic profile of the respondents................................................................27

4.2.1 Gender .......................................................................................................27

4.2.2 Age of respondents....................................................................................28

4.2.3 Level of education.....................................................................................28

4.2.4 Frequency of shopping..............................................................................29

4.3 Influence of Sales promotion on Consumer Purchase Decisions..........................30

4.3.1 Frequency of shopping at Nakumatt..........................................................30

4.4 The Purchase Decision Process.............................................................................31

4.4.1 The need recognition stage........................................................................31

4.4.2 Information search stage............................................................................32

4.4.3 Evaluations of Alternatives........................................................................33

4.4.4 Buying stage...............................................................................................35

4.4.5 Post-purchase behaviour............................................................................36

4.4.5. (a): Satisfaction...............................................................................36

4.4.5. (b): Dissatisfaction..........................................................................37

CHAPTER FIVE: DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction............................................................................................................39

5.2 Discussion..............................................................................................................39

5.3 Conclusion.............................................................................................................41

5.4 Recommendations.................................................................................................42

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LIMITATIONS OF THE STUDY.................................................................................42

SUGGESTIONS FOR FURTHER RESEARCH..........................................................42

REFERENCES ……………………………………………............................………....43

APPENDICES

Appendix I: Introduction Letter……………….……………..............………...…….…..46

Appendix II: Questionnaire……………………….................…….……….…..………...47

Appendix III: Sales Promotion Advertisements……….............……….…..….………...56

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LIST OF TABLES

Table 1: Most frequently used sales promotion tools......................................................20

Table 2: Gender of respondent.........................................................................................27

Table 3: Age of respondents............................................................................................28

Table 4: Respondents’ level of Education.......................................................................29

Table 5: Frequency of shopping at Nakumatt..................................................................29

Table 6: Frequency of shopping at Nakumatt..................................................................30

Table 7: Influence of sales promotion incentives during

the need recognition stage................................................................................31

Table 8: Impact of the sales promotion tools on Nakumatt

shoppers when seeking information................................................................33

Table 9: Extent to which the consumers consider the sales

promotion variables in the evaluation of alternatives....................................34

Table 10 Influence of sales promotion incentives during the

actual purchase.................................................................................................35

Table 11: Satisfaction and dissatisfaction of shoppers at

Nakumatt..........................................................................................................36

Table 12: Extent of actions taken when satisfied with

products of sales promotion.............................................................................36

Table 13: Extent of actions taken when satisfied with products

Of sales promotion...........................................................................................37

FIGURE

Figure 1: Stages in the Purchase Decision........................................................................13

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CHAPTER ONE

INTRODUCTION

1.1 Background If there is any single word that that can best describe today’s business is ‘change’. Many

forces are changing businesses and the nature of competition. In the words of Cravens

(2000), the drivers of change include, deregulation, global excess capacity, global

competition, changing customer expectations, demographic shifts and changing work and

lifestyles. These changes have led organizations to embark on activities that will provide

a source competitive advantage.

These changes have made consumers become more aware of their environment than they

did a few years back. Their tastes and preferences have taken different turns and change

constantly. Marketers are therefore forced to keep up with these changes by not only

providing goods and services that will satisfy the consumers but also providing them in a

way that is convenient and convincing to them. There is also need for the marketers to

detect the market trends and to be updated on such issues so as to remain competitive in

the market.

Market changes require altering business and marketing strategies. Some of the strategies

that businesses can adopt not only on customer retention but also their acquisition are

restructuring, branding, product development, diversification which may consist of

increasing product lines or organization branches ands mergers, and customer service

improvement.

Over the years there has been a need to increase sales volume especially in the short run

thus the use of sales promotion compared to the other tools of promotion. According to

Kotler (1997), decades ago, advertising to sales- promotion ratio was about 60:40. Today

in many consumer packaged goods companies, sales promotion accounts for 65% to 75%

of the combined budget. Sales promotion expenditures have been increasing as a

percentage of budget expenditure annually for the last two decades, and the fast growth

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rate is expected to continue. Sales promotion is now more accepted by top management

as an effective sales tool and product managers are widely using it to increase their

current sales. Some of the companies are concerned with increasing the sales in the short-

run; therefore sales promotion is often the resort. Companies use sales promotion to

create a stronger and quicker response. It is also used to dramatize product offers and to

boost sagging sales (Kotler, 1997).

1.1.1 Sales Promotion campaigns Sales promotion is one of the components of promotion mix, others being; advertising,

publicity, personal selling and direct marketing. According to Fill (2002), sales

promotion seeks to offer buyers additional value as an inducement to generate an

immediate sale. Sales promotion is therefore a communication tool that marketers or

organizations adopt to convey a message to their audience or customers.

Kotler (2003) is on the view that organizations should concern themselves with sales

promotion campaigns because of factors such as competitive pressures from their

counterparts, leading to the need of differentiation of their products and services. Buyers

have become expectant in that the consumers are promotion oriented and are demanding

more deals. There is also a need for the organizations to increase customer loyalty,

therefore adding value to a product or service is important. Organizations have an urge of

short-term results and the application of sales promotion produces quicker and more

measurable results (Fill, 2000).

Some of the most common and successful sales promotion techniques aimed at the

consumer include: Free samples which are used by marketers for several reasons that is to

stimulate the trial of the product, to increase the sales volume in the early stages of the

product life cycle, or to obtain the desirable distribution. Coupons are usually certificates

with a stated value which is presented to the supermarket for a price reduction of a

specified item .The purpose of the coupon is to bring the customer, into a particular outlet

and build the sales volume of a specified brand. Premiums are items which are offered

free or at a substantially reduced price to stimulate the purchase of the product being

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promoted .It is intended to produce quick sale. The premium can be attached to, or put

aside, the package of the product itself. Consumer contests and sweepstakes are both

similar in that they both imply opportunities to win something .A contest offers price

based on skill of the entrants. Contests are used to generate traffic in retail outlets .A

sweepstake on the other hand offers prices based on luck of the entrant. Sweepstakes are

usually used to stimulate lagging sales and like contests, are used with other sales

promotion methods.

Sales promotion is effective when there is low-involvement of consumers in the decision

making process. Sales promotion as suggested by Frances and Stephen (1997), is aimed

at increasing store traffic, frequency and amount of purchase, store loyalty, even out busy

periods and countering competition.

1.1.2 Consumer Purchase Decisions According to Schiffman and Kanuk (2004) a decision is the selection of an action from

two or more alternative choices. Thus, for a person to make a decision, choice of

alternatives must be available. The purchase decision process consists of stages a buyer

goes through in making choices about which products and services to buy (Berkowitz,

1994). Churchill (1994) further adds that consumer buying decision may result from

formal or informal decision-making. The way in which consumers decide whether and

what to by depends partly on the significance of the purchaser.

Kotler & Armstrong (2001) suggest that there are five stages in the purchase decision

process which include problem recognition, information search and evaluation of

alternatives, purchase decision and post-purchase behavior. However, it has been

observed by Schiffman and Kanuk (2004) that a consumer decision is a process that

consists of stages; need recognition, pre-purchase search and evaluation of alternatives. It

is further elaborated by Churchill (1994) that the consumer purchaser decision consist of

five stages, need recognition information search, consideration of options, purchase

decision, post purchase decision.

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Purchase decision is affected by several factors for example consumers’ moods,

unanticipated situational factors, attitudes of others and the perceived risk and reason to

purchase; marketers should therefore attempt to give consumers a very good reason to

purchase the products as they are communicating to them.

Marketers have to go beyond the various influences on buyers and develop an

understanding of how consumers actually make their buying decision. According to

Schiffeman and Kanuk (2004), a marketer familiar with the prevailing decision rule can

prepare a promotion message in a format that would facilitate consumer information

processing. Marketers should be interested in how consumers gather and process

information. Before planning its marketing programs, a company needs to identify its

target consumers and the type of decision process they go through. Marketers must plan

differently for 3 types of consumer buying behaviour, these are; complex, dissonance-

reducing behaviour and variety seeking behaviour. A marketer’s job is to understand the

buyer’s behaviour at each stage and what influences are operating. This understanding

allows the marketer to develop a significant and effective marketing programme for the

target market.

1.1.3 Background of Supermarket in Kenya According to Nielson (2002), supermarkets can be defined as self service stores handling

predominantly food and fast moving consumer goods with at least 150m² of floor space.

Kotler (1997) on the other hand, describes a supermarket as a relatively large, low cost,

low margin, high volume, self-service operations designed to serve the customer’s total

needs for food, laundry and household-maintenance products. He further argues that

despite strong competition from new and innovative competitors like superstores and

discount stores, supermarkets remain the most frequently shopped type of retail store. A

supermarket is a retail institution that has a moderately broad and moderately deep

product assortment spanning groceries and some non-food lines that offer relatively few

customer services and that ordinarily emphasizes rise in either an offensive or defensive

way (Etzel et al, 2007).

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In recent years Kenya has witnessed a rapid increase in supermarkets brought about by

strong forces of globalization and urbanization, there has been a growth in the urban

population. The growth in supermarkets in Kenya has increased from a niche in the 1990s

to the urban food market in 2003. Kenya has over 200 supermarkets and 10 hypermarkets

(Weatherspoon and Reardon, 2002). There are at least four Kenyan owned supermarkets,

included are, Uchumi, Nakumatt, Tusker Mattress and Ukwala group. Uchumi and

Nakumatt are the two dominant chains accounting for 70% of the market share

(Weatherspoon et al, 2002).

Supermarkets in the country are faced with heavy competition from kiosks, small dukas

or unlicensed businesses and hawkers as well as open air markets. These and other

challenges have gone to an extent of causing other prominent supermarkets such Uchumi

to bow out (Daily Nation 6th June). Supermarkets that are still surviving have the task of

carrying out researches to find out the best ways they can stay above the competition by

increasing sales, profits as well as their market share and Nakumatt is no exception.

In increasing their sales, most chains now operate fewer but larger stores. The practice

“scrambled merchandising” and carry many non-food items, beauty aids, house wares,

toys, prescriptions, appliances, videocassettes, sporting goods, garden supplies –hoping to

find high margin lines to improve profits Supermarkets are also improving on their

facilities and services to attract more customers. Typical improvements are better

locations, improving décor, longer store hours; check cashing, delivery and even child

care centers. Although customers have always expected supermarkets to offer good

prices, convenient locations and speedy check outs, today’s more sophisticated food

buyer wants even more. Many supermarkets, therefore are “moving upscale” with the

market providing “from-scratch” bakeries, garment counters, and fresh sea food

departments Others are cutting costs, establishing more sufficient operations and

lowering prices in order to compete more effectively with food discounters. Finally, to

attract more customers, many large supermarket chains are starting to customize their

stores for individual neighborhoods. They are tailoring store sizes product assortment,

price and promotions to the economic and ethic needs of the local market.

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According to Kibera and Wariungi (1998), competition has been overcome by visible

forms of sales promotion that are aimed at the ultimate purchase of product. A gentle

product can be over come the customer natural hesitancy to try something new. Sales

promotion can also be used to encourage customers to buy more of the product at one

time, thus increasing the total usage. Despite the logic to the contrary, the consumer who

has a reserve supply of a product will be inclined to use more of it, that is, if the item is in

use is the only one on hand. The retailer may simply want to provide the consumer with

additional incentive to pick the “right” brand from an often large number of brands

available in the market place.

1.1.4 Nakumatt Holdings Nakumatt began operations in 1965 as a family was concerned with dealing in furniture

and bedding. In the 1970, the family business was incorporated as Nakuru Mattress

Limited. The company extended in the rural areas selling consumer items to schools,

hospitals and other organizations. Competitive pricing and the provision of excellent

services led to an increase in demand for its product range thus creating the need for a

retail outlet. There was need however, for a name that would suit all other branches,

therefore Nakumatt was considered as an appropriate name. The first Nakumatt was

Nakumatt Mega, which was founded by the father of Mr. Atul Shah in Nairobi in the year

1992, who is currently the Managing Director. Their motivation is derived from the

countries potential in terms of population size (33million people). The company

considers its customers’ incomes and sets goals in relation to the range of income people

earn. Its customer base consists of an estimate of 500,000 people, which is basically less

than 1% of the total population of the country.

Nakumatt currently has seventeen branches in Kenya. Twelve of these branches are

located in Nairobi, one in Kisumu, one in Kisii, two in Mombasa and one in Eldoret.

Nairobi branches include; Nakumatt Mega, Nakumatt Ukay, Nakumatt Junction,

Embakasi, Thika road, Village market, Highridge, Ngong road, Karen, Nakumatt

downtown and Nakumatt Lifestyle. Nakumatt Lifestyle and Nakumatt Downtown are

centrally located in the CBD and because of their strategic positions they have attracted

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the attention of many and also increased the consumer base of Nakumatt supermarkets.

Nakumatt lifestyle was opened soon after the closure of Nakumatt Check point in late

2005. The supermarket is situated in Hazina trading centre building in Monrovia Street.

Nakumatt Downtown is situated along the Kimathi Street in Woolworth building.

The management structures are centralized in a way that ensures efficient decision-

making and execution of tasks. The structure consists of the managing director who holds

the top position, followed by the financial controller. Below the financial controller is the

operations director and the operations coordinator. The financial controller is the person

who plays the most important role of inventory control and harmonizing the operations of

the various branches.

Nakumatt experiences tough competition from its counterparts such as Tusker

Mattresses, Sky Matt supermarkets and Ukwala chain stores. It has however, tried to

remain ahead of competition by strategically locating its branches all over the country

and the latest is the introduction of the Nakumatt Smart Card, the first Smart Loyalty

Card in Africa (Smart Lifestyle Magazine for Smart shoppers, issue April – June 2006.

Pg 8). The Card was introduced in August 2003 and is a loyalty card that earns points for

purchases at Nakumatt and other participating outlets. The points are then redeemable at

participating outlets for goods, services and gift vouchers. Holders also enjoy special

benefits by way of preferential discounted prices for products and services at the outlets

and promotional offers exclusive to them. Currently, according to (Smart Lifestyle

Magazine for Smart shoppers, issue April – June 2006. Pg 8), Nakumatt Holdings Ltd is

in the process of introducing Cyber Cash so as to take Smart Cards to the next level,

whereby a payment function is being added. It entails the cardholders pre-loading value

on the cards and then either withdrawing the money or spending the money at any of the

outlets.

Nakumatt uses both trade and consumer promotions though the latter carries a heavier

weight. Trade promotions seek for discounts from their suppliers, which then create room

for high volumes sales and supplies. For instance, attaching samples of new products to

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already existing ones. It also uses patronage rewards like smart cards and gift cards.

Advertising is also a major tool used in this company. It is meant to push products whose

lines have bee extended or have been differentiated. The company considers how its

promotional tools would influence consumers’ decision by, finding out what the

consumers’ needs are, finding out how well informed consumers are about slow moving

products and finding out what alternative choices of products consumers prefer. The main

challenge in setting sales promotion tools is trying to reach their target markets by

creating place utility to consumers. They are trying to overcome this by locating their

branches in strategic places and also trying to diversify in many parts of the country.

In defining their promotional roles according to an interview conducted with Miss. Mugo

the marketing Director of Nakumatt Holdings Ltd, the supermarket considers the value

they offer to customers, how they defend their margin of safety and the reward they will

offer to their customers. All considerations having been made, roles such as; Supportive

role to allow repeat purchase, initiative role that creates awareness and allows for new

leads and creative role in order to beat competitors are identified. To measure the impact

of sales promotion on their sales volume, promotional objectives and targets are set and

the achievements obtained through these objectives are critically evaluated. Nakumatt

believes that each promotional tool works out well given the right strategic moves.

1.2 Statement of the problem Supermarkets play a significant role in the Kenyan economy. They are major employers

and contributors towards infrastructural development through payment of taxes. They

also improve the standards of living through the provision of basic food stuff. However

supermarkets in Kenya face greater competition from small retail shops, open air markets

including hawkers, kiosks as well as among themselves. Nakumatt supermarket is no

exception, even though it is a market leader in cities such as Nairobi, Kisumu, Kisii and

Mombasa.

As a way of beating competition and striving to be the leading supermarket in Kenya,

Nakumatt has engaged in aggressive promotional campaigns through advertising and the

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sales promotion. Prominent among these are the sales promotion campaigns that it

undertakes on regular basis such as price offs coupons and deals (Daily Nation, 26th May,

7th June and 31st May, respectively). Besides, a major sales promotion weapon it uses is

the Smart Cards.

According to Fill (2002) sales promotion is a sure way of increasing store traffic and also

the number of people who become loyal to the company. Given that sales promotion is

expensive, it only makes sense if it brings positive results, i.e. achieving the objectives it

was intended for. This would require first and foremost the understanding of consumer

purchase decisions, whether it has been influenced by the promotions. Sales may increase

but not necessarily because of promotions. Hence, Nakumatt should not necessarily

apportion the increase in sales or store traffic on its sales promotion efforts. The

management should understand the fact that consumer purchase decision may be

influenced by several factors.

Academic researches carried out by Naikuni (2001), Ndegwa (2003), Mulili (2000),

Chege (2001), and Julie (1992) concentrated on the broader aspect of the promotion mix

on various organizations. None of these studies however, targeted the specifics of sales

promotion tools on consumers’ purchase decisions as used by Supermarkets. Nakumatt

management needs to establish how the sales promotion campaigns influence consumer

purchase decisions. If these are known, the firm may be at a better position to redesign its

sales promotion strategies as well as other marketing programs to ensure that it stays

ahead of competition. The proposed study therefore intended to close this gap by seeking

responses to the following research question; how does the sales promotion campaigns by

Nakumatt Holdings Ltd influence consumer purchase decision for its products?

1.3 Objective of the Study

The objective of the study was to determine the influence of sales promotion campaigns

by Nakumatt Holdings Ltd on consumer purchase decisions.

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1.4 Importance of the Study The results of this study may be beneficial to:

i. This study may assist Nakumatt in formulating sales promotion strategies and

in coming up with the most appropriate sales promotion tools.

ii. Supermarkets may also get some useful information to assist in management

decision making in regards to sales promotion campaigns. This in turn may

enable them to act effectively on the information.

iii. Current and potential companies in various industries. They may use this

information to understand and appreciate the role played by sales promotion

campaigns.

iv. Marketers in making strategic decisions of how to fully exploit competitive

advantage in order to maximize their strengths and to appreciate sales

promotion.

v. Scholars and future researchers may use the findings of this research as a

source of reference. The study may also be used as a stepping stone in

studying consumer purchase decisions in other supermarkets in order to

establish any difference if any so that marketer will not make blank

assumptions to the potential of its use across retail stores.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Consumer Behaviour

Schiffman & Kanuk (1994) defines. The study of consumer behavior is concerned with

not only with what consumers buy, but with why they buy it ,when and where and how

they buy it ,and how often they buy it .It is concerned with the specific meaning that

products hold for consumers. Kotler (1997) has brought us to the attention that consumer

behavior is influenced by four factors, basically cultural (culture, subculture and social

class), social (reference groups, family and roles and statuses), personal (age, stage in life

cycle, occupation, economic circumstances, lifestyles, personality and self-concept) and

psychological (motivation, perception, learning, beliefs and attitudes). Research into all

these factors can provide clues as to how to reach and serve consumers more effectively.

The concept of consumer behavior is basically the behaviors that consumers display in

searching for products. Using everlasting and disposing of products services and ideas.

The study of consumer behavior comprises external forces such as family and culture,

internal forces such as attitudes, and behavior in the form of participation in exchange

activities (Churchill & Peter, 1995). At the social level, culture and subculture influence

consumer behavior through direct and indirect message that shape values. Social class,

similarity in income levels, comparable wealth, skills and power, all have an influences

people’s behavior. Reference groups are groups of people used as a basis for evaluating

their own beliefs and attitudes. One of the most important reference groups is the family.

Marketers are interested in knowing which family members make buying decisions as

well as which type of purchase decisions are associated with various stages in the family

life cycle. At the individual level consumers are influenced by their perception,

motivation, attitudes and life style. Therefore, marketers are interest in how consumers

gather and process information, as well as the drives that propel them to fulfill a variety

of needs.

To predict buying behavior, marketers study attitudes, or the combination of beliefs

about and evaluation of something that leads to a tendency to act in a particular way.

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Marketers study consumers’ lifestyles through use of psychographics, which categorize

people according to the way in which they conduct their lives. Consumer buying

decisions may result from formal or informal decision-making. Consumers are most

likely to use a formal decision-making process when the price is high, the product is

complex and there are many alternatives. Consumers may look for information about

products from internal sources, group sources, marketing sources public sources or

experiential sources. Once they have chosen a product especially a big –ticked item, they

may experience cognitive dissonance, a loss of confidence in their choice. Marketers can

counter this by providing support after a buying decision has been made.

2.2 Purchase Behaviour Kotler (1997) has brought to our attention how consumers actually make there buying

decisions, buyers’ level of involvement and the number of brand available to determine

whether marketers must identify who makes and has input into buying decisions; people

can be initiators, influencers, deciders, buyers, or users, and different marketing

campaigns might be targeted to each kind of person. Marketers must also examine

consumers are engaged in complex buying behavior, dissonance reducing buying,

habitual buying behavior, or variety-seeking buying behavior.

Shiffman and Kanuk (2004) argue that consumers make three types of purchases

basically, trial purchase, repeat purchase and long-term commitment purchases. When a

consumer purchases a product (or brand) for the first time and buy a smaller quantity than

usual, this purchase would be considered as a trial. Thus a trial is the exploration phase

of purchase behaviour which consumer attempts to evaluate a product through direct

use. For instance, when consumers purchase a new brand of laundry detergents about

which they may be uncertain, they are likely to purchase smaller trial quantities than if it

were a familiar brand. Consumers can also be encouraged to try a new product through

such promotional tactics as free samples, coupons and or sales prices.

When a new brand is an established product category (tooth paste, chewing gum, or cola)

is found by trial to be more satisfactory or better than other brands, consumer are likely to

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repeat the purchase. Repeat purchase behaviour in closely related to the concept of brand

loyalty, which most firms try to encourage because it contributes to great stability in the

market place. Unlike trial in which the consumer use the product on a small scale and

without any commitment a repeat purchase usually signifies that the product meets with

the consumers approval and that he or she is willing to use it again and in a large

quantities. Consumers can be encouraged to continue buying a product through bonus

packs, price off deals, contests, and sweepstakes.

Trial is not always feasible, for examples with most durable goods (for instance

refrigerators, washing machines or electric ranges) a consumer usually moves directly

from evaluation to a long-term commitment through purchase without the opportunity for

an actual trial. One can encourage consumer to continue buying through sweepstakes and

event sponsorship.

2.3 Purchase Decision Kotler (1996) defines purchase decision as the stage at which the buyer or the consumer

actually buys the product. He further states that the consumer will buy the most preferred

brand. Berkowitz (1994) however, proposes that behind the visible act of making the

purchase decision lies an important process that must be investigated. He therefore

defines the purchase decision process as the stages a buyer passes through in making

choices about which products and services to buy or consume. He further suggests that

there are five stages involved when consumers are making a purchase decision. They are

as follows:

Figure 1: Stages in the Purchase Decision

Source: Berkowitz K, and Hartley R, (1994), Marketing 4th Ed. Pg 90

Recognition Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behavior

14

Problem Recognition is the initial step in the purchase decision. It can be as simple as

finding an empty packet of milk in the refrigerator. In marketing, advertising or sales

people can activate a consumer’s decision process by showing the shortcomings of

competing products. The shortcomings may include differences in prices, whereby the

competitors’ products are priced relatively higher than that of the company. Nakumatt

can offer premiums so as to attract her competitors’ customers.

After recognizing the problem, the consumer begins to search for information. The

consumer may scan his memory for previous experiences with the brand or products.

This action is known as internal search (Berkowitz, 1994). The consumer may also

undertake an external search for information, this is especially if the past experience or

knowledge is insufficient. Primary sources of external information are: personal sources

for example relatives and friends whom the customer trusts, public sources for example

product rating organizations like consumer reports, government agencies and TV

consumer programs and marketer dominated sources such as information from sellers

that include; advertising, point of purchase displays in stores and inquiry from sales

people.

The information search stage clarifies the problem for the consumer by suggesting

criteria to use for the purchase and yielding brand names that might meet the criteria. The

information the consumer has may not be adequate because it does not contain all the

factors to consider. It is therefore important that the consumer come up with evaluative

criteria that represent both the objective attributes of the brands they may consider

important. Knowing these the marketer seeks to identify the most important evaluative

criteria consumers use when judging products or services.

Having examined the alternatives in the evoked set, the consumer makes a decision. An

evoked set is a final short list of serious appraisal Howard and Sheth (1999). Another

definition by Berkowitz (1994) states that the evoked set is a set or groups of brands in

the product class of which the consumer is aware.

15

Impulse buying occurs often during the purchase decision stage. Kotler (1997) expresses

that impulse buying is the purchase of goods without any planning or research efforts.

Marketers must take advantage of situations involving impulse buying. The may offer

consumers something of value so that the consumers are tempted to buy the products and

if the value is convincing enough, they may just end up purchasing the product. Purchase

decision stage may be a natural outcome of the evaluation stage, if one supplier is

noticeably more impressive on all the important criteria than the rest. If the choice is not

as clear-cut as this, the consumer may prioritize the criteria further perhaps deciding that

the price or convenience is the one overriding factor.

Cravens (1996), is on the view that consumers do not always follow the process on their

intentions. He argues that developments at the purchase stage may cause the consumer to

make a less preferred choice and not to buy at all. Circumstances at the time of sale may

influence purchase decisions, the shopper’s preferred brand may be out of stock leading

to no sale or talking to the sales person may cause a shift in preference to a brand that the

shopper had not intended to buy when she entered the store.

Reaching consumers who engage in low-involvement decision-making process is a

challenge for marketers. So little time and effort is spent on the purchase choice, that

information aimed at convincing consumers of the benefits of the brand is likely to be

selectively ignored. Getting the consumer to try the product on the spur of the moment is

crucial. Free samples, coupons and prominent displays in stores are tactics used to

encourage consumers to try a low involvement product. Further, building an overall

positive feeling toward the product among consumers as opposed to emphasizing on

specific attributes is an important objective for the entire marketing offer.

The final step in the purchase decision is the post-purchase behavior. After purchasing

the product, the consumer compares it with his or her expectations and he may be either

satisfied or dissatisfied. If the consumer is dissatisfied, marketers must decide whether

the product was deficient or consumer expectations too high. Product deficiency may

16

require a design change. If expectations are too high, perhaps the company’s advertising

or sales person oversold the product’s features.

2.4 Sales Promotion Kotler (2003) contributes by saying that sales promotion is media or non-media

marketing pressure applied for a pre determined, limited period at the level of consumer,

retailer or wholesales in order to stimulate trials, increase consumer demand or improve

product availability. For instance, a few sample of a product induces many consumers to

try it sales promotion may be directed towards ultimate users or intermediaries.

At the consumer level, promotion typically takes the form of coupons, limited time

discount offers, free samples, tie – in “gifts”, two – for – one pricing, rebates, contest or

sweepstakes, special events or similar effort. Sale promotion usually takes place in

conjunction with advertising or personal selling. For example a coupon may appear in a

newspaper ad or in a piece of direct mail. Sometimes companies team up in single sales

promotion intended to capture customers for both businesses.

According to Robert, Blattberg and Scott (1990) in Kotler (2003), sales promotion is a

key ingredient in marketing campaign, consist of a diverse collection of incentive tools

mostly short-term, and designed to stimulate quicker or greater purchase of particular

products or services by consumers or the trader. Sales promotions are designs to produce

quick results that will not only boost sales in the immediate future, but will translate to

loyal customers in the long run (Churchill and Peter, 1995). However, sales promotion

cannot be conducted on a continuous basis, because eventually they become ineffective.

A perpetual “sale”, a coupon with no expiration date, the contrails offer of the same gift

with purchase all can cause the consumer to delay purchase. After all, there is no sense of

urgency in these promotions. Thus to truly effective, the sales promotion must be short

and sweet: offered for a limited time and perceived to have value.

According to Kotler et al. (2001), sales promotion consist of short-term incentives, in

addition to the basic benefits offered by the product, or service, to encourage the purchase

17

or sales of a product or service. Whereas advertising offers reasons to buy a product or a

service, sales promotion offers reasons that would achieve immediate sales. It actually

seeks to motivate the customer to buy now.

2.4.1 Nature and scope of Sales Promotion Sales promotion is the element in an organization’s promotional mix that serves to

inform, persuade and remind the market of a product and or the organization selling it, in

hope of influencing the recipients’ feelings, beliefs, or behavior. According to Etzel et al,

(1997), sales promotion is a demand-stimulating activity designed to supplement

advertising and facilitate personal selling. This means, for sales promotion to be

effective, it has to be used together with the other forms of promotion. This is because

each of the various forms of sales promotions have their strengths and weaknesses but

when they are used as a combination they help minimize the weaknesses and maximize

the strengths. Sales promotion is paid for by the sponsor and frequently involves a

temporary incentive to encourage a sales or purchase. Many sales promotions are directed

to final consumers. However, the majorities are designed to encourage company sales

force or other members of its distribution channel to sell its products aggressively.

Inside the company, product managers face greater pressure to increase their current

sales, and promotion is increasingly viewed as an effective short-run tool. In mature

markets, manufactures are striving to maintain market share through a balance between

long-term ‘share of value’ gained from advertising and short-term incentives for the

consumer. Sales promotions are usually conducted by producers and middlemen. There

are two categories of sales promotion: Trade promotions which are directed to the

members of the distribution channel and Consumer promotions which are aimed at

consumers. Etzel et al. (1997), concurs that manufacturers as a group spend about twice

as much on trade promotions as they do on advertising, and an amount equal to their

advertising on consumer promotions. Several factors in the marketing environment

contribute to popularity of sales promotion.

18

2.4.2 Consumer-oriented Sales Promotion According to Berkowitz and Hartley (1994), consumer oriented sales promotion is

directed to ultimate consumers. Consumer-oriented sales promotion tools are use to

support a company’s advertising and personal selling. These tools are, coupons, deals,

premiums, contests and sweepstakes, sample, rebates and refunds, patronage rewards and

continuity programs, point of purchase promotion and displays and advertising specialties

as suggested by Berkowitz and Hartley (1994).

Coupons are sales promotion tools that usually offer a discounted price to the consumer,

which encourages trial. Studies suggest that market share does increase during the period

immediately after coupons are distributed. There are also indications, however, that

coupons can reduce gross revenues by lowering the price paid by already-loyal

consumers. Coupons are often far more expensive than the face value of the coupon.

They may be mailed, enclosed in other products or attached to them. They may be also be

inserted in magazines or newspapers (Berkowitz and Hartley, 1994).

Deals are short-term price reductions, commonly used to increase trial among potential

customers or to retaliate against a competitor’s actions. For example, if a rival

manufacturer introduces a new cake mix, the company responds with a “two packages for

the price of one” deal. This short-term price reduction builds up the stock on the kitchen

shelves of cake mix buyers and makes the competitors’ introduction more difficult.

A Promotional tool often used with consumers is the premium, which consists of

merchandise offered free or at a significant savings over retail. This latter type of

premium is called self-liquidating, because the cost charged to the consumer covers the

cost of the item. By offering a premium at a low price, companies encourage customers

to return frequently or to use more of the product. In continuity programs however, are

sales promotion tool used to encourage and reward repeat purchases by acknowledging

each purchase made by a consumer and offering a premium as purchases accumulate.

19

In contests consumers apply their analytical or creative thinking to try to win a price.

Consumers compete for prize and money on the basis of skills or ability and winners are

determined by judging the entries or ascertaining which entry comes closed to some

predetermined criteria. They usually provide a purchase incentive by requiring a proof

of purchase to enter or an entry form that is available from a dealer or advertisements.

On the other hand sweepstakes requires participants to submit some kind of entry form

but are purely games of chance requiring no analytical or creative efforts by the

consumer.

Another common consumer sales promotion is sampling, which is offering the product

free or at a greatly reduced price. Kotler (2003) is of the view that samples offer a free

amount of product or service delivered door-to-door, sent through the mail, picked up in a

store, attached to another product, or featured in an advertising offer. It’s often used for

new products. Sampling puts the product in the consumer’s hands. A trial size is

generally offered that is smaller than the regular size, if consumers like the sample, it is

hoped they will remember and buy the product. Sampling can also be used with

established products.

Advertising specialties are useful articles imprinted with an advertising name and given

as gifts to consumers. Typical items include pens, calendars, key rings, matches,

shopping bags, T-shirts, caps and coffee mugs. Such items are usually very effective.

Refunds offer the return of the money based on proof of purchase. Unilever has used this

tool in promoting OMO detergent. Packaged goods often use rebates offers as a way to

induce trial of a brand new product or to encourage users of another brand switch. Bonus

packs offer the consumer an extra amount of product at the regular price by providing

larger containers or extra units. Event sponsorship on the other hand is whereby a

company develops sponsorship relations with a particular event.

Patronage rewards are cash or other rewards offered for the regular use of a certain

company’s products or services. For example, airlines offer ‘frequent flyer plans’

awarding points for miles traveled that can be turned in for free airline trips. Some

20

international hotels like holiday inn and Marriott hotels have an ‘honored guest’ plan that

awards points to users of the hotels. Continuity programs are sales promotion tool used to

encourage and reward repeat purchases by acknowledging each purchase made by a

consumer and offering a premium as purchases accumulate.

Point of purchase (POP) promotions and displays are other important tools that take place

at the point of sale. POP promotions include displays and demonstrations that take place

at the point of purchase or sale. Unfortunately, many retailers do not like to handle

hundreds of displays, signs or posters they receive from the manufactures each year.

Manufactures have responded by offering better POP materials, tying them in with

televisions or print messages and offering to set them up. Point-of-purchase display take

the form of advertising signs, which sometimes actually hold or display the product, and

are often located in high-traffic areas near the cash register or the end of an aisle. The

following types of consumer-oriented promotions are the most frequently used:

Table 1: Most frequently used sales promotion tools

TYPE OF PROMOTION

FREQUENCY OF

USE Coupons (direct to consumers)

100%

Refunds

87%

Cents- off promotion

77%

Premiums

70%

Coupons (in retailers’ ads)

66%

Samples (new products)

64%

Sweepstakes

64%

Source: Berkowitz K, and Hartley R, (1994), Marketing 4th Ed, Pg.509

21

Most of the manufacturers purely understand that the key to their success is increasing

their sales and lowering of their costs. This is the highway to productivity hence their

major concern on these. Therefore, for manufacturers and producers to increase their

sales, they have to stimulate consumer purchases using the various promotional tools or

techniques. Their choice of techniques to use also determines their success in achieving

their objectives. Therefore, it becomes important for them to determine which techniques

are the important to use in order to achieve their goals. They need to establish what ways

will enable them to draw customers to their products and not those of the competitors.

They need to identify what the consumers’ need, what they are attracted to, what they

value as well as the driving force that influence their purchases.

On the other hand, consumers perceive the various promotional ways used differently.

This is because each of the consumers is unique in his or her needs, tastes and

preferences, attitude towards a product among other factors. Therefore, when

manufacturers and middlemen come up with their choice of promotional method to use

they have to put these factors into consideration. An organization therefore, needs to

determine how the various promotional tools used influence the consumers. This enables

an organization achieve its main objective of its existence through minimizing costs and

increasing sales.

2.5 Influence of sales promotion on consumer purchase decisions

Adcock et al, (2001) agrees that even when a purchase decision has been made, the

purchase decision can be affected by unanticipated situational factors. Some of these

factors could be directly associated with the purchase, for instance the outlet where the

purchase is to be made, the quantity to be bought, when and how to pay. Very often the

traders or suppliers remove the need to make this decision by either including the

essentials in the form of sales promotion tools, for instance coupons, deals, rebates and

samples. The timing decisions often linked to the payment decision and the acceptance of

credit cards has to large extent reduces the importance of these decisions for many

purchasers. However, emergence of new technology will have more of an effect on

consumers.

22

The additional benefit whether in cash or in kind offered to consumers through sales

promotion is highly likely to influence their purchase behavior (decision). After

considering the possible options, the consumer makes a purchase decision. The

consumer’s choice depends in part on the reason for the purchase (Kotler et al, 2003).

The consumer may act quickly, especially if sales promotional tools are used or the

consumer may postpone making any purchase.

When the consumers are making their purchases, they find out what products and

services are available, what features and benefits they offer, who sells them at what

prices, and where they can be purchased (Stanton et al, 1994). Without the market

information there wouldn’t be a purchase decision process since there wouldn’t be any

decision to make. The manufacturers, retailers, advertisers and sales people provide the

market information when they engage consumers in efforts to inform or persuade in an

attempt to communicate with consumers. Sales promotion provides a suitable link by

providing consumers with samples of the products for them to test them in small

quantities as well as provide consumers with the most needed information concerning the

product.

Davidson et al, (1984) says that a purchase decision may be between objective or

emotional motives: nevertheless, in all cases, the sale is made or not made in the

customers mind and not in the mind of the seller. A product is not purchased for it s own

sake but for its ability to satisfy a need. The uses of some of these promotional tools help

in determining the use that consumers are likely to put the product into and therefore

guide them toward the right product (Cox and Brittain, 2000). Consumers are provided

with relevant information, get a chance to try a product and get to know whether it

satisfies their needs and also enjoy a price reduction. Sales promotion can be used to

draw consumers to the product and they end up making an impulse purchase as a result of

the strength of the sales promotional tool.

Berkowitz and Hartley, (1994) propose that in the purchase decision process, at the

recognition stage and the information search stage, the sales promotion tool that is more

23

applicable is the free samples because it helps gain low risk trials. Consumers will be

more likely to take the risk of trying a sample rather than buying the whole product and

being disappointed. He further suggests that at the alternative evaluation and the purchase

decision stage, coupons, deals, point of purchase displays and rebates are suitable sales

promotion tools as they encourage demand and repurchase of the same product by the

consumer. He finally proposes that at the post purchase stage, the best sales promotion

tool would be the use of coupons again, as they encourage repeat purchase from first time

buyers.

2.6 Summary of literature review

Consumer behavior is the behavior that consumers display in searching for products. This

behavior may be influenced by factors such as culture, family, and occupation among

others. This behavior is extended even in the purchase of goods and services whereby

consumers portray some behavior when making the purchase decision. The behavior is

shown in a series of steps that the consumers follow booth mentally and physically as

they purchase the products. These steps include, the recognition of a need stage, where

the consumers’ needs are triggered by internal or an external stimuli, it is then followed

by the information search where the consumers actively seek for information about the

products that may satisfy their needs. After acquiring this information from various

sources they have to evaluate all the alternatives available to them then finally decide on

the product to buy. Consumers tend to show some post-purchase behavior depending on

their level of satisfaction. If they were satisfied with the purchases, actions like talking

positively about the purchase to friends and relatives may be common. If they are

dissatisfied with the purchase then they will probably talk negatively about the product or

the whole purchase experience and may not repurchase the product the next time.

Marketers have realized a need to carry out sales promotion campaign that are undertaken

to stimulate trials of products, increase consumer demand or improve product

availability. Some of the sales promotion tools include coupons, deals, premiums,

contests and sweepstakes, free samples, advertising specialties, refunds and rebates,

patronage rewards, point of purchase promotions and point of purchase displays.

24

The sales promotion tools can be used to influence purchase decisions that consumers

have to make. They can be tailored in such a way to fit the actual decision the consumer

is facing for example at the recognition of a need stage and the information search stage,

the sales promotion tools that can be used and are more applicable are the free samples

because lowers the risk of trial. At the alternative evaluation stage and the actual

purchase stage, coupons, deals, point of purchase displays and rebates can be used, as

they encourage demand.

Finally at the post purchase stage, coupons would be the best tool because they encourage

repeat purchase especially from first time buyers.

Nakumatt has applied various forms of sales promotion tools as we have discussed in the

literature. Some of these tools are premiums “too comfortable by far” (Nakumatt, Daily

Nation, 18th may 2006) whereby they give two free pillows with every purchase of

slumber land double sized mattresses and or chivan. Another premium is the advert on

31st may 2006 on by Kenchic capon of 1.4kg and get one pack of chicken burgers, special

offer advert of royal elephant rice and get free Santa Lucia spaghetti. Another tool that

has been used is the coupon whereby according to a Nakumatt advert, Daily Nation 7th

June 2006 gives a twenty percent discount on thousands of items during a crazy mid year

sale, twenty five percent off at Nakumatt mega special clearance corner 26th may 2006.

They have also used contest in the going on ‘Shika more’ season whereby a consumer

shops for goods worth five hundred shillings and above, and then texts a certain pin

number from the receipt and qualifies to enter in the draw. Deals have also been used, for

example 1st June 2006, the company offered ‘cool prices for cool season’ where prices

had been reduced for the period. See appendix III.

The question therefore was if these sales incentives offered by Nakumatt, play any part in

the decision making process, and if so, to what extent did these incentives offered

influenced the consumers’ purchase decision as they go about buying various goods and

services to satisfy their needs.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design

This was a descriptive study aimed at determining the influence of sales promotion

campaigns undertaken by Nakumatt Holdings Ltd on the consumer purchase decision.

According to Malhotra (1996), a descriptive study has its objective as a description of

something in regard to who, what where, when, and how of a phenomenon, which is the

concern of the current study.

3.2 The population

The population of interest in this study included all the current customers of Nakumatt

supermarket. According to Nakumatt (2006), there were seventeen branches countrywide

with a total of approximately five hundred thousand customers.

3.3 Sample and sampling design

There were seventeen branches of Nakumatt countrywide; two of these branches were

selected using convenience sampling, with a further selection of one hundred

respondents.

3.4 Data collection

A self administered structured questionnaire was used to collect data. The questionnaire

consisted of open ended and closed ended questions and had two main parts. Part A

consisted of questions aimed at obtaining general information about respondents; Part B

on the other hand, consisted of specific questions aimed at obtaining data for the

objective of the study.

3.5 Data analysis

Given that the study was a descriptive design, descriptive statistics was used to analyze

the data. Data on Part A was analyzed using frequency distribution and percentages. As

for Part B, the data was analyzed using mean score and standard deviation so as to

26

determine the influence of sales promotion campaigns on consumer purchase decision.

Tables and percentages were included to represent the response rate.

27

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter is presented in several sections. The first section looks at the demographic

profile of the respondents that is the gender, age, and education level. The data has been

presented in tabular form. The second section looks at the interpretation using

percentages and frequencies. Part B of the questionnaire used to collect data consisted of

questions that sought to find out the extent to which consumer purchase decisions are

influenced by the sales promotion tools. The responses were analyzed using descriptive

statistics.

Out of 100 questionnaires that had been administered to the interviewees, 73 of them

were returned for analysis. This translates in to 73.0 percent response. Overall, the return

rate can be considered to have been moderately high.

4.2 Demographic profile of the respondents

Since the study focused on the consumers, the researchers found it necessary to analyze

the demographic data, as consumers are diverse. The demographic data sought included

gender, age, education level, occupation and residence.

4.2.1 Gender

The researchers collected data on the gender of the respondents so as to be able to

interpret their responses. The findings are presented in the table below,

Table 2: Gender of respondent

Gender Frequency Percent

Male 35 47.9

Female 38 52.1

Total 73 100

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From table 2, it is evident that majority of the respondents were females i.e. 53% while

35% were male. This implies that most shoppers at Nakumatt are females as opposed to

the males.

4.2.2 Age of respondents

Because of differences in the consumer age groups, the researchers sought to find out age

brackets of the respondents so as to know which bracket shops frequently.

Table 3: Age of respondents

Age Frequency Percent

Below 25 27 37.5

26-35 25 34.2

36-45 11 15.1

46-55 7 9.6

56 and Above 2 2.7

Total 73 100.0

From the table 3 above, we can see that most of the respondents that were interviewed

were aged below 35 (52%). A few were between 45-55 years of age (9.6%) while only 2

(2.7%) were above 56 years old. This implies that majority of the shoppers in Nakumatt

are generally young people.

4.2.3 Level of education

The level of education of the respondents was of importance because this would

determine their level of understanding of the sales promotion activities carried out by

Nakumatt. Findings are presented on table 4.

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Table 4: Respondents’ level of Education

Level of Education Frequency Percent

Primary 2 2.7

Secondary 6 8.2

College 21 28.8

University 44 60.3

Total 73 100.0

Table 4 shows that 44 (60%) of the people who shop at Nakumatt have attained

university education. 21 (28.8) have gone up to collage level while only 6 and 2 have

gone up to secondary and primary education respectively.

4.2.4 Frequency of shopping

The researchers saw it relevant to determine the frequencies at which Nakumatt

customers visit the supermarket. The Table below shows their findings,

Table 5: Frequency of shopping at Nakumatt

Frequency of Shopping Frequency Percent

Very often 14 19.2

Often 25 34.2

Sometimes 29 39.7

Rarely 5 6.8

Total 73 100.0

The Table above shows that most of the respondents (39.7%) shop at Nakumatt

supermarket frequently, 14 (19.2) shop very often and subsequently only 5 (6.8%) of the

respondents rarely visit the supermarket.

30

4.3 Influence of Sales promotion on Consumer Purchase Decisions

The study was aimed at establishing the extent to which consumer purchase decisions are

influenced by sales promotion campaigns. A likert scale was used to translate the mean

scores. The mean scores were distributed into the clusters of variables according to the

sales promotion incentives being offered. A mean score of above 4 means that the

variable was used at a very large extent, a mean score of between 3.01- 4 means that the

variable was used to a large extent, a means score of between 2.01 – 3 means that the

variable was used to a moderate extent, a mean score of 1.01 – 2 means that the variable

was used to a little extent and a mean score of less or equal to 1 means that the variable

was not used at all. A standard deviation of above or equal to 1 means shows that there

were significant variations in the respondents.

4.3.1 Frequency of shopping at Nakumatt

This was to determine the extent to which sales incentives offered by Nakumatt

supermarket had influenced the frequency of shopping at the outlet.

Table 6: Frequency of shopping at Nakumatt

Variables Mean Std. Deviation

Layout of products in shelves 2.27 1.23

Displays on supermarket windows 3.06 1.20

Discounts offered such as 25% discounts on electronics 2.61 1.30

Contents of Nakumatt magazine given to smart card

holders

3.32 1.29

Free samples for customer trial 3.24 1.28

Attachment services offered like warranties 3.00 1.49

Free gifts accompanied with purchase of product and

the buy-get-one offer

2.86 1.32

Average 2.91 1.30

31

Table 6 above shows an average mean score of 2.91 which means that frequency of

shopping at the supermarket had to a moderate extent been influenced by the variables in

the above table. However attachment of services offered such as warrantees, free samples

and customer trials and the contents displayed on the Nakumatt magazines given to the

loyalty card holders have been used to a very large extent to influence the frequency of

shopping. On the other hand layout of products in the shelves, discounts on electronics

and free gift offers had only influenced the frequency of shopping to a moderate extent.

There was an average standard deviation of 1.30. Standard deviations for all the variables

tested were greater than one implying that there were significant variations in the

responses.

4.4 The Purchase Decision Process

The consumers undergo five stages during the purchase decision as follows; need

recognition, information search, evaluation of alternatives, purchase decision and post-

purchase behavior. There was need to determine the extent to which the sales incentives

offered by Nakumatt influenced the mentioned purchase decisions

4.4.1 The need recognition stage

This is the initial step in the purchase decision. The researchers wanted to find out if the

sales promotion variables listed below and used by Nakumatt supermarket helped the

respondents in recognizing a problem or a need of a certain product or service. The table

below shows their findings.

Table 7: Influence of sales promotion incentives during the need recognition stage.




32

Discounts offered such as 25% discounts on electronics 2.96 1.25


holders

3.44 1.31



Free gifts accompanied with purchase of product and

the buy-get-one offer

3.03 1.27

Average 2.95 1.29

Table 7 indicates that the attachment of services such as warrantees, magazine contents or

advertisements in the Nakumatt magazine and free gifts offered of buy one get one free

have to a large extent helped the respondents realize some of the unmet needs they have.

Layout of products in the shelf (2.28), displays on the supermarket windows (2.96) and

free sample (2.94) all helped the consumers to recognize a need, but only to a moderate

extent. The table also shows an average mean score of 2.95 which means that

recognition of the need of a product or service had to a moderate extent been influenced

by the sales promotional variables in the above table. An average standard deviation of

1.29 suggests that there was a significant variation in the responses gotten from the

respondents

4.4.2 Information search stage

After the recognition of a need, the consumer seeks to look for information of how the

need can be satisfied. The researchers saw it best to find out how some of the sales

promotion activities carried out by the supermarket influenced or helped in their search

for information they required. The results were indicated in the table 8.

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Table 8: Impact of the sales promotion tools on Nakumatt shoppers when seeking

information





holders

3.39 1.47



Products that are exclusively available at Nakumatt

and no other supermarket

2.10 1.24

Average 2.76 1.31

Table 8 shows that the magazines given to the respondents such as ‘Smart Lifestyle

Magazine for Smart shoppers’ assisted them at a large extent during their search for

information, also free samples for trial and attachment of services on goods such as

warranties helped to a large extent while seeking for information. Having products

exclusively available in the outlet only and no other outlet, window displays and layout

of the products on the shelves only assisted them at a moderate extent. The table also

shows an average mean score of 2.76 which means that the sales incentives mentioned

had assisted but only at a moderate extent in the search for information. There were

significant differences in the responses as there was an average standard deviation of

1.31.

4.4.3 Evaluations of Alternatives

The consumers always seek to evaluate all the alternatives at hand before making the

actual purchase. The researchers were interested to find out to what extent the sales

34

promotion variables assist the consumers especially when evaluating the products and

services. The responses that were given to the researchers are represented in table 9.

Table 9: Extent to which the consumers consider the sales promotion variables in

the evaluation of alternatives


Products that are exclusively available at Nakumatt

and no other supermarket

2.01 1.18



Discounts offered such as 50% discounts on all

electronic goods.

2.41 1.30

Redeemable points gained by the smart card holders 3.03 1.46

Competitions such as the ongoing ‘shikamore’ season

contests

2.86 1.47


Short term reduction in prices e.g. during the holidays 2.82 1.34

Average 2.67 1.30

The table above shows that the use of free samples and the use of loyalty cards held by

the card holders influence them to a large extent while choosing from the alternatives

they have. Exclusive products, attachment of services, layout of products on the shelves,

discount offers, competitions and draws and finally short term reduces on prices

influence the shoppers’ evaluation of alternative stage to only a moderate extent. An

average mean score of 2.67 means that the sales incentive variables helped to a moderate

extent in the evaluation of the choices or alternatives the consumers had. A standard

deviation of 1.46 and 1.47 indicated that there was a significant variation in the

responses. Further an average standard deviation of 1.3 suggested that there was an

overall significant variation in the responses.

35

4.4.4 Buying stage

The researchers sought to find out how the listed sales promotional variables had

influenced the forth stage in the purchase decision which is the actual buying of the

products and services

Table 10: Influence of sales promotion incentives during the actual purchase


Timing of the sales promotions e.g. during the holidays

or festive seasons

1.94 1.01

Payments on installments 3.31 1.42

Cash payments with attached discounts on the cash

discounts.

2.43 1.16

Size of the discounts 2.26 1.10

Type of product being discounted 2.39 1.12

Validity of the offer 2.31 1.20

Average 2.44 1.17

The table above shows that for some particular goods, payments in installments to a large

extent influenced their actual purchase of the products. Cash discounts, size of the

discount, type of product being discounted and validity of the offer influenced the actual

purchase to a moderate extent, whereas the timing of the promotions for example during

the holidays only influenced the purchase of the products to a small extent. Table 10 also

shows an average mean score of 2.44 which generally means that the actual buying had to

a large extent been influenced by the variables in the mentioned. Timing o f the sales

promotion records a standard deviation of 1.01 which implies that there were almost no

significant variations in responses as compared to payments on installments (1.42).

However an average standard deviation of 1.17 was recorded which suggested that

generally there were significant variations in the responses.

36

4.4.5 Post purchase behavior

After the purchase of promotional products, the consumers always experience some post

purchase behavior, they may be satisfied or dissatisfied with the purchase and this greatly

determines whether or not they will repurchase the product, remain loyal to the

supermarket or whether they will speak positively or negatively about their experience to

their friends and relatives. Table 11 indicates the percentages of those who were satisfied

or dissatisfied with their purchases.

Table 11: Satisfaction and dissatisfaction of shoppers at Nakumatt

Frequency Percent

Satisfied 70 95.9

Dissatisfied 2 2.7

Total 73 100.0

The table above shows that 95.9% which represents majority of the respondents, were

satisfied after purchasing products and services from Nakumatt supermarket on the basis

of sales promotion such as short term price reductions, discounts, free gifts accompanied

by the purchase of a product and after sales service. Only 2% of the respondents showed

some dissatisfaction with the purchase of the promotional products of Nakumatt.

4.4.5. (a): Satisfaction

The table below shows actions that were taken by the respondents after they were

satisfied with their purchases from Nakumatt supermarket.

Table 12: Extent of actions taken when satisfied with products of sales promotion

Action Mean Std deviation

I testified to friends and relatives about the incentive 2.47 1.14

I testified to friends and relatives about the Nakumatt

supermarket ltd

2.50 1.07

I made a repeat purchase/would make a repeat purchase 2.06 1.09

37

from Nakumatt

I increase the frequency at which I shop at Nakumatt 2.40 1.04

I have become more loyal to the supermarket ever since 2.51 1.14

I acted as a referee to other customers who needed to

shop

3.01 1.31

Total 2.49 1.13

As depicted in the table, most of the respondents acted to a large extent as referees to

other customers who needed to shop. Other shoppers testified to friends and relatives,

made repeat purchases, increased their frequency of shopping and became loyal to the

outlet but only to a moderate extent. The table further shows an average mean score of

2.49 which means actions taken after shopping at Nakumatt had to a large extent been

influenced by the sales promotion variables mentioned earlier. An average standard

deviation of 1.13 suggested generally that there were significant differences in the

responses that were obtained.

4.4.5. (b): Dissatisfaction

The table below shows the extent of actions taken by consumers after being dissatisfied

with the purchase of items at Nakumatt supermarket.

Table 13: Extent of actions taken when satisfied with products of sales promotion

Action Mean Std deviation

I ignored the dissatisfying features of the promotions

and products

3.30 1.28

I grumbled to friends and relatives about Nakumatt

supermarket ltd

3.63 1.21

I shifted or would shift to another supermarket 3.52 1.31

I requested a refund 4.06 1.40

38

I registered complains with a consumer bureau 4.14 1.48

Total 3.73 1.34

From table 13 the consumers requested for refunds and also registered with the customer

care bureau in the events of dissatisfaction to a very large extent. The rest to a moderate

extent, ignored the dissatisfying factors, grumbled to friends and relatives or shifted to

other supermarkets. The table also shows an average mean score of 3.73 which means

actions taken after shopping at Nakumatt had to a large extent been influenced by the

variables in the above table. An average standard deviation of 1.34 suggests that there

was a little a significant difference or variation in the responses.

39

CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

The objective of this research was to find out whether the consumer sales promotion

incentives offered by Nakumatt influenced the purchase decision of their consumers and

also to what extent they influenced these purchase decisions. The extent to which the

sales incentives influenced the consumers’ purchase decision was studied through the use

of the likert type questions. This chapter focuses on the analysis of the findings,

interpretation of the results by comparing them to the theoretical background presented in

chapter two, and then finally the conclusion. Limitations of the study will also be

mentioned.

5.2 Discussion

The research study indicated that consumers actually use the sales promotion incentives

during their purchase decision makings. The extent to which the consumers use the sales

promotion incentives ranges in a continuum from a very large extent to a small extent.

The study also indicated that most of the goods purchased on the basis of sales incentives

include food stuff, electronics, and toiletries among others. Furniture is not frequently

purchased on these bases.

The study has shown that in the need recognition stage, most of the consumers rely on the

magazines offered by the supermarket free of charge as well as the free gifts attached to a

good. Consumers are largely influenced by the attachment services offered for instance

warranties .Free samples offered to consumers and discounts for instance discounts on

electronic items, also had considerable influence in helping consumers identify the needs.

However, least influence came from the layout of products in the shelves of Nakumatt

supermarkets.

Before consumers made a purchase decision, they searched for information about the

product of interest. Proper information prior to the purchase enhanced customer

40

satisfaction. From the findings more customers searched for information from the

Nakumatt magazine given to the smart card holders. Other sources of information mostly

used were free samples on customer trials and attachment services offered like

warranties. On the other hand, products that are exclusively available at Nakumatt and no

other supermarket only assisted to a small extent.

With regards to evaluation of alternatives, the sales promotional tools that assisted

consumers a lot in evaluation of alternatives were free samples for customer trials which

enabled them get a feel of the products before they buy them, as well as redeemable

points gained from smart card holders which could be redeemed for school fees or

shopping vouchers. Competition such as the ‘shikamore’ contest and the short-term price

reduction in prices, for example during holidays had considerable impact. Less influence

came from products exclusively available at Nakumatt and not in other supermarkets.

Further, findings of the study showed that payment on installments influenced the buying

decision to a large extent, since most customers were able to acquire a product and pay

for it conveniently, as they derived satisfaction from the product. Type of product being

discounted also largely influenced consumers. However the timing of the sales

promotion, for instance, during the holidays or the festive season impacted the consumers

only to a small extent in making the buying decision.

The last stage of the purchase decision process is the post purchase behavior. The

findings showed that majority of the Nakumatt shoppers were satisfied after they had

made the purchase and their satisfaction was enhanced by the use of sales promotion by

Nakumatt. However, there was a small number that was not satisfied after the purchase

and of major concern was to acquire information on post- purchase behavior. Of the

consumers that were satisfied, majority of them acted as referees to other customers who

needed to shop through providing information and advice to them. Another large number

became loyal to the supermarket ever since while a small percentage made repeat

purchase as a result. On the other hand, most of the dissatisfied consumers either

registered complains with the consumer bureau or requested for a refund. A small number

41

of the dissatisfied consumers ignored the dissatisfying features of the promotions and the

products.

In general, the findings indicate that the consumer purchase decisions are influenced

largely by sales promotion campaigns. The sales promotion campaigns are premiums

contests, free-samples, attachment of services and free gifts that enable there to be

frequency of shopping. It has also been realized that consumers are made to make

purchase decisions through stages. This is mainly the need recognition, information

search, evaluation of alternatives purchase decision and post purchase behavior.

It was evident from the research that the firm applied the sales promotion campaigns to

influence the consumer purchase decision.

5.3 Conclusion

The findings of the study were consistent with the theories discussed in the literature

review. The marketing manager must develop a promotional mix that precisely meets the

needs of the people in the target market. The sub elements of the consumer purchase

decision would include: - need recognition, information search, evaluation of alternatives,

buying stage and post-purchase behavior. In every stage of the purchase decision, various

sales promotion tools play a major role in enhancing the consumer’s decision. The

challenge comes in when the marketer has to blend these promotional tools to capture and

influence the actual stages in the purchase decision.

In the literature review there were suggestions that, at the recognition stage and the

information search stage, the sales promotion tool that is more applicable is the free

samples; at the alternative evaluation and the purchase decision stage, coupons, deals,

point of purchase displays and rebates are suitable sales promotion tools and finally at the

post purchase stage, the best sales promotion tool would be the use of coupons again, as

they encourage repeat purchase from first time buyers. The marketers should therefore be

aware of some of these strategies and use them to their advantage to encourage frequency

and loyalty together with satisfaction of their customers.

5.4 Recommendations

42

This study has shown that the consumer purchase decisions are influenced by the sales

promotion campaigns. For there to be a great influence, it is however important to tailor

the sales promotion to each stage of the consumer purchase decision since each

promotion has an influence of its own at each stage. Proper research is important before

determining which tools will be effective in influencing the purchase decision of each

product at each stage. For instance, free samples are effective for small consumer

products while after sales services are effective for electronic products and furniture.

LIMITATIONS OF THE STUDY i) Some consumers did not understand the questions asked properly and ended up

giving wrong answers which were not applicable in the study hence were of less

importance.

ii) The study was conducted during the weekdays and therefore, views of shoppers

who only shop during the weekend were not achieved.

iii) Some of the shoppers at Nakumatt were not the decision makers but were only

sent to undertake the purchase and this might have affected the study.

SUGGESTIONS FOR FURTHER RESEARCH Marketing managers of various institutions must be able to determine which sales

promotion tools yield the greatest impact in influencing the consumer purchase decision.

Various products being sold require different sales promotional campaigns and therefore

each promotion must be tailor made. Areas recommended for further research include:

i) Expanding the study to include all Nakumatt supermarkets

ii) More involvement of the management of the supermarket in carrying out the

study.

iii) Establish the impact of the new promotional campaigns being used and their

impact in achieving the desired objectives

REFERENCES

43

Adcock. D, Halborg A. and Ross .G (2001) Marketing Principles And Practice 4th

Pearsons Education Harlow England.

Berkowitz K, Hartley R, Kerin RA and Rudelius W. (1994), Marketing 4th Ed Irwin,

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Chege C (2001) The extent of usage of marketing mix variables in the shipping

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London.

Cox. R, and Brittain. P (2000), Retail Management, 4th Pearsons Education, Harlow,

England.

Daily Nation Newspaper, (2006) Nakumatt Sales Promotion Advertisements

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Davidson. WR, Sweeney, DJ and Stampfl RW (1984), Retailing Management 5th Ed

John Wiley and Sons New York.

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Assael H (1993) Marketing Principles and Strategy 2nd Ed Dryden Press, USA

Jonathan Berry (1994) “Wilma! What happened to the old Ad?” Business Week,

June 6, 1994 pg54-58

Julie J B (1992) The extent to which commercial banks in Kenya use promotional

mix elements to market their services. Nairobi, University of Nairobi

Kibera and Wariungi (1998), Fundamentals of Marketing: An African

perspective, USA, Cambridge University press

Kotler P. ( 2003) Marketing Management 11th Ed Prentice Hall, New York

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3rd Ed Prentice Hall, Harlow, England.

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Prentice Hall, Harlow, England

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India.

Malhotra NK, (1996), Marketing Research and Applied orientation 2nd Ed NJ

Prentice hall.

Mugo C (2006), Interview at Nakumatt Head Offices, Mombasa Road. (11.30am)

45

Mulili B M (2000) Utilization of promotional mix elements by small business

enterprises; the case of Nairobi Eastlands. Nairobi, University of

Nairobi

Naikuni J A (2001) An empirical investigation of the application of promotional

mixes elements within multinational pharmaceutical companies in

Kenya. Nairobi, University of Nairobi

Ndegwa S M (2003) A survey of the application of promotional mix in the Agro-

chemical industry Nairobi, University of Nairobi

Shiffman. L and Kanuk. L (2004) Consumer Behavior 8th edition, Prentice Hall,

New Delhi India.

Smart Lifestyle Magazine for Smart shoppers, issue April – June 2006.

Stanton W, J, Etzel, M J, and Walker, B, J (1994) Fundamentals of Marketing 10th

Ed mcgraw-hill New York.

46

APPENDICES Appendix I:

Letter to the respondents Dear Respondent, We are undergraduate students, currently undertaking a survey on ‘Influence of sales Promotion Campaigns on Consumer Purchase Decisions: The Case of Nakumatt Supermarkets within Nairobi Central Business District’. This study is in partial fulfillment of the requirements of a Bachelors Degree in Commerce, University of Nairobi. You have been selected to participate in this study and we would highly appreciate if you assisted us by responding to all questions as completely, correctly and honestly as possible. Your response will be treated with utmost confidence and will be used only for purposes of this study. Thank you. Mike, S. N. ………………. Timothy M. K. ………………. Eva, N. N. ………………. Florence, S. A. ………………. Harriet, W. K. ………………. Bachelor of Commerce Students, 2006

University of Nairobi

47

Appendix II:

The Questionnaire The questionnaire below has two parts. Part A is aimed at giving the profile of the

respondent. Part B tries to gauge the influence of sales promotion campaign undertaken

by Nakumatt Supermarket on the consumer purchase decision.

Please respond to the following questions and where applicable, mark the relevant box

with a tick.

PART A

1. General information

a) Respondent’s name (optional) ………………………………………………………

b) Occupation…………………………………………………………………………..

c) Place of residence…………………………………………………………………...

d) Gender

Male ( ) Female ( )

e) Age group (tick one)

Below 25 ( )

26 – 35 ( )

36 – 45 ( )

46 – 55 ( )

56 and above ( )

f) Level of Education

Primary ( )

Secondary ( )

College ( )

University ( )

g) How often do you shop at Nakumatt?

Very often ( ) Often ( ) Sometimes ( ) Rarely ( ) Never ( )

48

PART B 2. Which types of services or products (e.g. electronics, furniture, food stuffs and other

accessories) do you purchase on the basis of the following sales incentives offered at

Nakumatt Supermarket?

Incentives

Products purchased

i) Short term price offs during certain occasions for example on the holidays

…………………………………………….. …………………………………………….

ii) Discounts on specific items

…………………………………………… ……………………………………………

iii) Free gifts accompanied by the purchase of a products e.g. buy-one-get –one free.

…………………………………………… ……………………………………………

iv) Attachment services offered for example free installation of electronic products or warranties attached to the products

……………………………………………. ………………………………………….. ………………………………………….

v) Redeemable points gained by the Smart card holders

…………………………………………… ……………………………………………

vi) Competitions such as the on going ‘Shika more’ season contests

…………………………………………… ……………………………………………

49

3. Indicate on a scale of one to five, where; 5 = very large extent, 4 = large extent, 3 =

some extent, 2 = small extent and 1 = no extent, the extent to which the following

sales incentives offered by Nakumatt Supermarket have increased your frequency of

shopping at the supermarket.

Incentives

Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1Layout of the products in the shelves of the supermarket

Displays on the windows of the supermarket

Discounts offered such as the 25% discount offer on electronics.

Contents of the free Nakumatt magazines given to the Smart card holders

Free samples offered for consumer trial

Attachment services offered for example free installation of electronic products or warranties attached to the products

Free gifts accompanied with the purchase of a product and the buy-get-one free offers

4. Before any purchase of a product a consumer first realizes a problem thus recognizing

the need for that product or service. On a scale of one to five, where; 5 = very large

extent, 4 = large extent, 3 = some extent, 2 = small extent and 1 = no extent indicate

the extent to which the following incentives have helped you recognize the need of a

product or a service.

50

Incentives

Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1Layout of the products in the shelves of the supermarket


Discounts offered such as the 25% discount offer on electronics.


Free gifts accompanied with the purchase of a product and the buy-get-one free offers


Free samples offered for consumer trials

4. Having identified the need, a consumer usually searches for information on what

to buy from several sources e.g. friends, advertisements, promotions and inquiries

from sales people. Indicate the extent to which sales incentives carried out by

Nakumatt has assisted you when you are looking for the products to buy.

51

Incentives

Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1Layout of the products on the shelves in the supermarket





Products that are exclusively available at Nakumatt supermarket and no other supermarket

5. Once you have all the information acquired for the products or services needed,

there is need to evaluate all the alternatives. E.g. you may have identified the TVs

you like, however there are several brands like the Sony, Samsung, Panasonic and

the like, there is therefore a need to evaluate all the brands and come up with a

choice. In a scale of one to five, indicate the extent to which the following sales

incentives have helped you in making a choice of the product to purchase.

52

Incentives

Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1

Products that are exclusively available at Nakumatt supermarket and no other supermarket


Layout of the products on the shelves in the supermarket

Discounts offered such as the 50% discounts on all electronic goods.

Redeemable points gained by the Smart card holders.

Competitions such as the on going ‘Shika more’ season contests


Short term reduction of prices on certain occasions for example during the holidays

6. In the actual stage of buying, one should consider the timing of the purchase, i.e. when

to buy, the quantities to purchase, the mode of payment whether in installments or by

cash and the services that are attached to the product. To what extent do the following

influence the actual buying of the products or services?

53

Events

Very large

Extent 5

Large Extent

4

Some Extent

3

Small Extent

2

No

Extent1

Timing of the sales promotions e.g. during holidays, festive seasons, end of the month or at the middle of the month

Payments on installments e.g.

Cash payments with attached discounts on the cash payment

Sizes of the discounts

Type of product being discounted

Validity of the offer, whether the incentives last for a month, a week or a weekend

7. After purchasing the products or services from Nakumatt supermarket on the basis of

sales promotions such as short term price reductions, discounts, free gifts

accompanied by the purchase of a product and after sales services, are you

Satisfied ( )

Dissatisfied (tick one) ( )

8. In general, whenever a consumer is satisfied with any purchase of a product, he or she

may take certain actions. On a scale of one to five, where 5 = very large extent, 4 =

large extent, 3 = some extent, 2 = small extent and 1 = no extent, indicate the extent

to which you would undertake or undertook the following actions after the purchase.

54

Action Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1 I testified to friends and relatives about the incentive

I testified to friends and relatives about Nakumatt Supermarket Ltd

I made a repeat purchase/ would make a repeat purchase from Nakumatt

I increased the frequency at which I shop at Nakumatt

I have become more loyal to the supermarket ever since

I acted as a referee to other customers who needed to shop, by convincing them to shop from Nakumatt

9. Please indicate in what other ways you responded or would respond for being satisfied

with Nakumatt Supermarket and the incentives they offered.

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

10. Alternatively you may have been dissatisfied with the purchase of a product. Please

indicate to what extent you responded to the following actions

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11. Indicate in what other ways you responded for being dissatisfied with Nakumatt

Supermarket and the incentives they offered.

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

THANK YOU FOR YOUR COOPERATION

APPENDIX III

Actions

Very large Extent

5

Large Extent

4

Some Extent

3

Small Extent

2

No Extent

1I ignored the dissatisfying features of the promotions and products

I grumbled to friends and relatives about Nakumatt Supermarket Ltd

I shifted or would shift to another Supermarket

I requested a refund

I registered s complaint with a consumer bureau

Influence of Sales Promotion on Consumer Purchase Decisions_Timothy Mahea

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