An Examination of Sales Promotion Programs Essay

Words: 5044
Pages: 21
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Journal of Promotion Management, 16:467–479, 2010
Copyright © Taylor & Francis Group, LLC
ISSN: 1049-6491 print / 1540-7594 online
DOI: 10.1080/10496491003659563

An Examination of Sales Promotion Programs in Hong Kong: What the Retailers Offer and What the Consumers Prefer
LIN YANG
Victoria University of Wellington, Wellington, New Zealand

WAH-LEUNG CHEUNG
Hong Kong Baptist University, Hong Kong, China

JAMES HENRY and JOHN GUTHRIE
University of Otago, Dunedin, New Zealand

KIM-SHYAN FAM
Victoria University of Wellington, Wellington, New Zealand

This study gives an insight into the retailer’s capability of managing sales promotion by examining the sales promotion programs offered by Hong Kong cosmetic and toiletry …show more content…
The consumer goods manufacturer sees sales promotions as a necessary evil.
The advocate of brand advertising proclaims that sales promotions are a bad thing since they do not contribute to the brand building needed for future success and profitability (Dawes, 2004). At the same time, those involved in running the sales promotions focus on the tactical issue of getting the greatest amount of short-term sales for the least promotional investment
(Davies, 1992).
Over the years, sales promotion has become a ubiquitous element of consumer marketing. However, not all promotional activities are effective.
For instance, Liao (2006) claimed that instant-reward sales promotion was preferred over delayed-reward sales promotion and the preference for sameproduct sales promotion was stronger than for other-product sales promotion. Gilbert and Jackaria (2002) analyzed the promotional deals used in U.K. supermarkets and found that price discount had significant influence on consumers’ buying behavior. In contrast, sampling and “buy one get one free” techniques had no significance on a consumer’s reported buying behavior.
In food retailing, Peattie (1998) found non-price sales promotion techniques like competition were an effective method for moving stock. However, in the case of
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