An Examination of Sales Promotion Programs Essay

5037 Words21 Pages
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
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Value-adding promotions including free gifts, samples, loyalty schemes, or competition are often overlooked. These types of sales promotions may play a more positive role of adding entertainment value for what is paid (Wakefield & Barnes,
1996). Lichtenstein, Netemeyer, and Burton (1995), on the other hand, classified sales promotions into price or non-price promotions. Notwithstanding, price-based value increasing promotions have the potential to erode the image of the company as consumers often use price as a surrogate measure of quality (Tellis & Gaeth, 1990).
In contrast, value added promotions tend to offer the customer “something extra,” which might provide the customer with extra incentives to purchase the product (Peattie & Peattie, 1995). Along that line, the central

An Examination of Sales Promotion Programs in Hong Kong

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premise of the research by Chandon, Wansink, and Laurent (2000) is that the value that sales promotions have for brands or for customers is related to the value. Several researchers (Henderson, 1987; Schneider & Currim, 1991) claim that sensitivity to different types of sales promotion might explain different promotional responses. Following this rationale, the primary objective of this study is to focus on the sales promotion techniques offered by Hong
Kong cosmetic and toiletry retailers and to determine to what extent
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