Impact Of Sales Promotion On Brand Loyalty

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Impact of Sales promotion on brand loyalty Today most organisations are involved not only in wide spread advertising of their products and services but have also started using different sales promotion tactics to increase their sales and profitability. Discount as such has become a common word in consumer’s mind without which it seems they may no more be satisfied to make a purchase because of the wide spread habit forming for discounts that has taken place. In their drive to push up sales, it indeed becomes a question whether organisations assess what long term impact it could have on its brand loyalty. This triggers a need for a research to see what effect does sales promotions actually have on the brand image of an organisation which…show more content…
Literature Review Brand image is the key driver of brand equity, which refers to consumer’s general perception and feeling about a brand and has an influence on consumer behaviour. (Zhang 2015) Marketing practitioners should take cognisance of the fact that sales promotions can influence a consumer to buy a product, which they have never tried before or alternatively to motivate brand switching of the consumers. They also need to gain an understanding of the specific market segments that are targeted, and those promotional tools that are more effective in stimulating sales within these segments. Sales promotions are done by organisations in many ways and these can be monetary or non-monetary in nature. If they are monetary in nature then it would depend upon the frequency of such price promotions to judge how it would affect the image of the brand. Previous research indicates that if such price promotions like low price deals are used very frequently then they will relate this occurrence to low brand loyalty as they would be cognitively tempted to think about the deal being offered and not on the value that would be derived from the brand. Such high frequency promotions can lead to consumers switching one brand for another which would then be providing such deals. On the positive side it is also possible that consumers buy the product repeatedly irrespective of the offer on the product or on any competitive
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