Documente Academic
Documente Profesional
Documente Cultură
Executive summary.......................................................................................2
Research proposal title.................................................................................3
1.0 Introduction: Broad Statement of the Research Problem...................3
2.0 Background of the Study and Research Problem................................4
3.0 Research Objectives................................................................................5
3.1 To identify the amount of consumers who think promotional tools are useful in
saving money................................................................................................................5
To evaluate whether a favourable attitude towards the tools would lead to product
trial................................................................................................................................5
To determine the level of tools’ awareness as a moderating factor towards product
purchase and trial..........................................................................................................6
To examine which promotional tools are the most effective in inducing product trial
and purchase..................................................................................................................6
3.5 Research Plan - Diagram 1 (Malhotra et al, 2004, p.20)........................................7
4.0 Justifications of the Study......................................................................8
5.0 Literature Review....................................................................................9
6.0 Research Framework and Hypotheses................................................10
7.0 Research Methodology..........................................................................12
7.1 The sampling Design Process...............................................................................12
7.2 Method of data collection.....................................................................................13
7.3 Research instrument..............................................................................................13
7.4 Method of processing and analysis.......................................................................14
7.5 Method of Data Analysis......................................................................................15
7.6 Research budget....................................................................................16
7.7 Questionnaire ........................................................................................17
8.0 Result and Discussion...........................................................................20
8.1 Demographic Analysis/Findings...........................................................................20
8.2 Descriptive Statistics.............................................................................................21
8.3 T-test.....................................................................................................................23
8.4 One way ANOVA.................................................................................................24
8.5 Regression Analysis..............................................................................................28
9.0 Limitations and Future Research........................................................31
10.0 Recommendations ..............................................................................33
11.0 Conclusion............................................................................................34
12.0 References............................................................................................35
1
Executive summary
This assignment is a complete assignment that combines both the proposal and SPSS
analysis as to evaluate the impact of promotional tools towards product trial. In the first
assignment, the background of the study which is the extent of Klang Valley shoppers
respond to promotional tools especially in case of grocery shopping. Next, the research
problems arise where the effectiveness of the promotional tools and the attitude of the
shoppers towards the tools will be further investigated in our research. Next, we set our
research objectives such as find out the attitude, level of awareness and perception of the
shoppers towards promotional tools. We also drew up a research plan as to guide us along
our research process. By the way, we need to justify our marketing strategies that refer to
the outcome and implementation of our research. The literature review sum up the points
in the journals that refer to the promotional tools and are set as foundation of our
research. The research framework and hypotheses set out the relationship and statement
between the independent, dependent and moderating variables that we going to
investigate later. The research methodology is the most crucial part as it explained the
sampling design process, method of data collection, research instrument and method of
processing and analysis that we will be implement as to obtain the information and
interpret the research result. Now, we move on to the second assignment which is based
on SPSS analysis. Data entry and analysis were done to obtain the result for future
analysis. We started with the demographics analysis that includes the statistics of the
respondents’ age, gender and income. Descriptive analysis told us about the mean of each
promotional tool. The t-test evaluate the difference between male and female and there is
a significant difference between them .One Way ANOVA analyzed the discrepancy
between the different age group. The last part is the regression analysis where it indicated
that all promotional tools have a positive relationship with product trial and the most
effective tool is loyalty card. Limitation of the research was discussed and
recommendation was given for future improvement of the research. In conclusion, the
organizations should also prudent in planning, budget and selection of promotional tools
where the most effective tools will be selected to boost their sales.
2
Research proposal title
Impact of promotional tools on product trial with attitude and awareness of tools as
moderating variables
A Klang Valley Study
3
2.0 Background of the Study and Research Problem
As much research has focused on coupons and price discounts, other equally
important promotional tools such as personal selling, value packs, ‘buy one free one’ and
loyalty cards, have been in want of more research coverage, especially their applications
in Malaysia. All these tools, save personal selling, are the most widely used sales
promotional tools in the grocery products industry. This research does not limit itself to,
but focuses on retail grocery outlets or the grocery products industry because it carries
many low involvement products (LIP), which, according to Ndubisi and Chew (2006),
are believed generally, to be more responsive to promotional tools compared to high
involvement products.
Due to the emergence of more and more retail grocery outlets, competition has
stiffened, and managers of especially major retail grocery outlets have had to use
promotional tools to develop competitive advantage and maintain or improve market
share (Rowley, 1998). These promotional tools can be price oriented such as coupons,
and non-price oriented such as loyalty cards. The price-oriented tools are recognized for
their usefulness in inducing product trial and increasing relative market share (Lee,
2002). Non-monetary tools like loyalty or point-accumulation cards (e.g. J-card from
Jusco, Topshop card, Sen-Q and Bonuslink) are effective because most card holders are
loyal to the card and all the brands affiliated with it, as the cards provide incentives to the
card holders to have repeat purchases and stay loyal to the brand, because reward points
are earned according to shopping frequency (Mauri, 2003). Moreover, if the company is
successful in creating consumer awareness towards the tools, consumers may form
favourable attitudes towards the products and hence form intention to purchase the
product in greater amounts (Shimp, 2000). Usually, expenditure on promotional tools
account for a quarter of the marketing budget, asserting its significance (Honea and
Dahl, 2005).
The marketing research problem is derived from the management decision
problem and it is the duty of the marketers to first find out what information is needed in
order to determine the management problem, before it can be solved. In this case, the
marketing research problems or questions are:
1. Which promotional tool is the most effective in inducing product trial and purchase?
4
2. Do consumers have favourable attitudes towards these promotional tools?
3. How aware are the consumers of these promotional tools?
4. Do the consumers respond to the promotional tools positively to the extent it induces
product trial/purchase? Which ones specifically, to what degree are they effective, and
why?
3.1 To identify the amount of consumers who think promotional tools are useful in
saving money.
To evaluate whether a favourable attitude towards the tools would lead to product
trial.
Customers who have favourable attitudes towards the tools are likely
to purchase or try out the products on promotion.
The tri-component attitude model (cognitive, affective, behavioural)
represent three different stages which can be conceptualized to show an integrated
picture of how the consumers respond towards the tools (Laroche, 2003).
Most of the promotional tools tend to focus on the behavioural stage
because it leads to actual product purchase and trial (Shi, Cheung and Prendergast,
2005).
5
To determine the level of tools’ awareness as a moderating factor towards product
purchase and trial.
To examine which promotional tools are the most effective in inducing product trial
and purchase.
6
3.5 Research Plan - Diagram 1 (Malhotra
Definition of the et al, 2004, p.20)
Evaluation problem or opportunity Clarification
and
monitoring
Management
Management
decision problem
decision making
6. Report
preparation
and presentation Marketing
research problem
5. Data preparation
and analysis 2. Development of an
approach to the
problem
Establish Revise
research costs
7
4.0 Justifications of the Study
Diagram 2: Marketing Strategy Justification
8
money
9
Bristol, 2004). However, Mauri (2003) had come to the same conclusion as Bellizzi and
Bristol, that is, that not all subscribers to a loyalty card are all even card-loyal. They
found that these loyalty card holders had many ‘loyalty’ cards. Bellizzi and Bristol (2004)
found that both card usage and card ownership are inversely related with supermarket
loyalty, and that card users were actually less likely to be loyal supermarket shoppers.
Personal Selling is “face-to-face interactions with one or more prospective
purchasers, for the purpose of making sales’ (Rowley,1998,p.384), particularly famous in
business-to-business marketing. Kim and Merrilees (1998) put deeper meaning to
personal selling, as they attribute it as an important tool for relationship marketing. They
find that consumers are increasingly turning to salespeople as a source of information and
reliability, more applicable to medium and high-price retail firms, compared to low
involvement products.
Buy-One-Free-One offers may be offered at the regular price, thus adding value
to the product – persuading consumers to buy the product because an additional amount
is given free of charge (Shi et al, 2005). It is also used to trigger unplanned purchases
(Inman et al.,1990, as cited in Laroche et al.,2003). However, further researched showed
that it only proved most effective in stockpiling, but least effective in product trial usage.
Value packs are considered similar to Buy-One-Free-One offers as it gives more value
compared to the usual retail package.
10
research. Furthermore, the research entails collecting data from the target population once
only.
Diagram 3: Research Framework
Coupon
Personal Selling
Value Pack Product Trial
Buy 1 Free 1
Loyalty cards
Attitudes
Awareness
The following hypothesis for the study was developed based on the preceding review of
literature.
H2: There is a significant positive relationship between “Personal selling” and product
trial.
H3: There is significant positive relationship between “Value pack” and product trial.
H4: There is significant positive relationship between “Buy 1 free 1” and product trial.
H5: There is significant positive relationship between “Loyalty cards” and product trial.
11
7.0 Research Methodology
12
questionnaires. It also means that face to face communication between interviewer and
respondent is enabled, which means that the interviewer can screen the most suitable
respondents, and has the chance to pick up more samples should the ones already
collected be faulty (Malhotra et al, 2004, pp. 224-232).
13
7.4 Method of processing and analysis
The method of processing and analyzing the data of the impact of promotional tools on
product trial is as follows (Malhotra, 2004, pp. 254-262):
• Coding: is the process of grouping and assigning numeric codes to the various
responses to a particular question. It allows the transfer of data from the
qualitative nature of the answers in the questionnaire to numerical, quantitative
data in the computer.
14
Inferential statistics include hypothesis testing and estimating true population
values based on the sample information collected.
• Associative Analysis: It examines if and how two variables are related. For
instance, can the promotional tools induce consumers to trial purchase? Basic
associative analysis methods used in marketing research are cross-tabulations and
correlations.
Descriptive statistics are statistics that usually connected with a frequency distribution
that assists sum up the information showed in the frequency table. These comprise; first,
measures of central tendency such as mean, median and mode. Secondly, measures of
dispersion such as range, standard deviation, and coefficient of variation. Lastly,
measures of shape such as skewness and kurtosis.
T-test is generally used for creating statements about the means of parent populations. T-
test can be explained as an unvaried hypothesis test using the t distribution that is applied
when the standard deviation is unidentified and the sample size is relatively small. The
test is based on t- statistic. The t statistic presumes that the variable is normally allocated,
the mean is identified and the population variance is predicted and calculated from the
sample.
15
One-way ANOVA analysis can analyze the variable which consists of more than two
categories. For example, in this research, researcher had used age group by which age
groups were divided into 5 categories.
The regression analysis method is used as this technique can be used for analyzing the
relationships between a metric dependent variable and one or more metric independent
variable. It is also widely use for explaining variation in things such as market share,
sales, brand preference, and other marketing research in terms of marketing management
variables such as advertising, price, distribution and product quality.
By the time of distributing the questionnaires to the shoppers particularly at the shopping
mall or retail grocery outlet, we will need to provide incentive in the form of a small gift
or a bottle of mineral water to each respondent in order to encourage them to fill up the
questionnaires as well as possible. It is estimated that each respondent incentive will cost
roughly RM 2.
16
7.7 Questionnaire
QUESTIONNAIRE SURVEY
Dear respondent, we are conducting this survey as part of our marketing research assignment on “Impact of
promotional tools on /product trial with attitude and tools’ awareness as moderating variables”. This survey
is carried out purely for academic purposes. It is our word that the results will not be revealed to persons
other than the researchers and the examiner for purposes of examination only.
Section 2: Expenditure
2) How much do you spend on average, on each shopping trip to a retail grocery outlet (eg: Tesco,
Carrefour, Giant, TMC)?
____________________
5) Which promotional tool is more familiar to you, please rank them from 1(most familiar) to 5 (least
familiar) :
[ ] Personal selling
[ ] Coupon
[ ] Value pack
[ ] Buy 1 free 1
[ ] Loyalty card
17
Section 4: Measure of attitude towards tools as moderating variable to product trial
(adapted from Shi, Y.Z., Cheung, K.M., and Prendergast, G. (2005)
Please rank the following statements based on:
1= strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree
6) Personal Selling
a. Personal selling has led me to buy another brand which I do not regularly buy. 1 2 3 4 5
b. Personal selling has led me to buy the product earlier than planned. 1 2 3 4 5
c. Personal selling has led me to buy more quantities of the same product. 1 2 3 4 5
d. Personal selling has led me to buy a product which I have never tried before. 1 2 3 4 5
e. Personal selling has led me to spend more spend more on the same product. 1 2 3 4 5
7) Coupons
a. Coupon has led me to buy another brand which I do not regularly buy. 1 2 3 4 5
b. Coupon has led me to buy the product earlier than planned. 1 2 3 4 5
c. Coupon has led me to buy more quantities of the same product. 1 2 3 4 5
d. Coupon has led me to buy a product which I have never tried before. 1 2 3 4 5
e. Coupon has led me to spend more on the same product. 1 2 3 4 5
8) Loyalty Card
a. Loyalty card has led me to buy another brand which I do not regularly buy. 1 2 3 4 5
b. Loyalty card has led me to buy the product earlier than planned. 1 2 3 4 5
c. Loyalty card has led me to buy more quantities of the same product. 1 2 3 4 5
d. Loyalty card has led me to buy a product which I have never tried before. 1 2 3 4 5
e. Loyalty card has led me to spend more on the same product. 1 2 3 4 5
9) Value pack
a. Value pack has led me to buy another brand which I do not regularly buy. 1 2 3 4 5
b. Value pack has led me to buy the product earlier than planned. 1 2 3 4 5
c. Value pack has led me to buy more quantities of the same product. 1 2 3 4 5
d. Value pack has led me to buy a product which I have never tried before. 1 2 3 4 5
e. Value pack has led me to spend more spend more on the same product. 1 2 3 4 5
18
Section 4: Demographic Profile
11) Gender
[ ] Male [ ] Female
13) Race
[ ] Malay
[ ] Chinese
[ ] Indian
[ ] Others, please specify _________________
We are deeply grateful and appreciative of your participation in this survey. Thank you for your time and
co-operation.
Prepared by,
Syarifah Anita Ibrahim
Lim Ying Ying
Sia Kok Liang
19
8.0 Result and Discussion
Respondent's Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 55 36.7 36.7 36.7
Female 95 63.3 63.3 100.0
Total 150 100.0 100.0
Respondent's Age
Cumulative
Frequency Percent Valid Percent Percent
Valid Below18 yrs 6 4.0 4.0 4.0
18-24 yrs 78 52.0 52.0 56.0
25-30 yrs 27 18.0 18.0 74.0
31-40 yrs 19 12.7 12.7 86.7
41yrs and above 20 13.3 13.3 100.0
Total 150 100.0 100.0
Respondent'sRace
Cumulative
Frequency Percent ValidPercent Percent
Valid Malay 17 11.3 11.3 11.3
Chinese 109 72.7 72.7 84.0
Indian 18 12.0 12.0 96.0
Others 6 4.0 4.0 100.0
Total 150 100.0 100.0
Cumulative
Frequency Percent Valid Percent Percent
Valid SPM 24 16.0 16.0 16.0
STPM/Diploma 17 11.3 11.3 27.3
Undergraduate Degree 49 32.7 32.7 60.0
Postgraduate Degree 60 40.0 40.0 100.0
Total 150 100.0 100.0
Cumulative
Frequency Percent Valid Percent Percent
Valid Below RM1000 37 24.7 24.7 24.7
RM1000 - RM1999.99 58 38.7 38.7 63.3
RM2000 - RM2999.99 27 18.0 18.0 81.3
RM3000 - RM 4999.99 12 8.0 8.0 89.3
RM5000 - RM9999.99 10 6.7 6.7 96.0
RM10,000 and above 6 4.0 4.0 100.0
Total 150 100.0 100.0
20
Although 230 questionnaires were answered by respondents, only 150 questionnaires
have been used in this analysis after the filtering process, as the rest were found to be
incomplete or faulty. Here, with the descriptive analysis, we describe the phenomenon or
characteristics of the above data.
As observed in the opening tables, out of the 150 respondents, 36.7% were male whereas
63.3% were female. The proportion or break-down of respondent’s ages according to our
five age categories are as follows: below 18 years (4%), 18-24 years (52%), 25-30 years
(18%), 31-40years (12.7%), and 41years and above (13.3%). The respondent’s racial
percentage break-down is as follows: Chinese consumers (72.7 %), Indians (12%),
Malays (11.3%), and others (4%). The education percentage break-down of our
respondents, as seen above is: SPM (16%), STPM/Diploma (11.3%), Undergraduate
Degree (32.7%), and Postgraduate Degree (40%). Last but not least, the average
respondents’ monthly income break-down percentages are: Below RM1000 (24.7%),
RM1000-RM1999.99 (38.7%), RM2000 – RM2999.99 (18%), RM3000 – RM4999.99
(8%), RM 5000 – RM9999.99 (6.7%), and RM10, 000 and above (4%).
Descriptive Statistics
In the questionnaire, we had used a five-point Likert scale to measure the responses of the
consumers, which have been translated into the results shown above. Here, the mean
represents the mean responses in terms of customers’ perception towards the five sales
promotional tools in the table above. The usual mean average (suitable to a 5-point Likert
scale) that is used as a benchmark is 2.5. Anything above this mean is considered high.
21
As seen in the table, the means for all the promotional tools, as well as for product trial
exceed 2.5. This indicates that the consumers are more agreeable than disagreeable
towards these tools, and towards product trial.
The consumers’ mean perception of personal selling is 2.8560; coupons = 3.1827, loyalty
card = 3.3160; value pack = 3.7653; buy-1-free-1 also 3.7653, and product trial = 3.3240.
The standard deviations of value pack, buy-1-free-1 and product trial are relatively lower
compared to the other variables (all less than 1). This indicates that the means are more
representative of the sample and that the means are explained better. It also implies that
the individual scores are not too dispersed.
The minimum and maximum values in the table are used as base points of comparison.
Here, we can determine that the mean perception of personal selling is the lowest
(2.8560). This indicates that personal selling is least favoured, familiar, or deemed least
influential by the respondents (this is because, on the 5-point Likert scale we used, the
more positive the trait, the higher the value it held, and vice versa). In contrast, the means
for both value pack and buy-1-free-1 were found to be exactly the same, and the highest
(3.7653), indicating a high, or favourable mean perception of the two tools, equally as
much. The implication of this upon marketers is that they are able to realize the
effectiveness and interchangeability of these two promotional tools in their efforts.
The mean also indicates at which point each variable ranks on the Likert scale. Personal
selling ranks closest to neutral (2.5), as its mean is 2.8560, whereas the strongest mean
perceptions attributed to Value pack and buy-1-free-1 (3.7653), rank somewhere in
between ‘agree’ and ‘strongly agree’ on the scale. The rest of the promotional tools linger
somewhere between ‘neutral’ and ‘agree’.
22
8.3 T-test
Male Female
Traits Mean Standard deviation P-value Mean Standard deviation
0.580(0.788 2.821
Personal selling 2.9164 0.9643 1.0431
) 1
0.913(1.606 3.189
Coupons 3.1709 1.0834 0.9544
) 5
0.073(1.602 3.193
Loyalty card 3.5273 1.2796 0.9655
) 7
0.364(0.070 3.818
Value pack 3.6727 0.893 1.0351
) 9
0.879(2.068 3.757
Buy 1 free 1 3.7782 0.8517 0.7459
) 9
0.177(0.001 3.269
Product trial 3.4182 0.6466 0.6456
) 5
Here, we’ve used T-Test because we only have two groups, that are, the independent
variables male and female. The dependent variables are the five promotional tools as well
as product trial.
In this analysis, the P-value of each promotional tool has to be determined. From the
analysis above, we can derive that:
• there is no significant mean difference in terms of perception towards personal
selling between males and females (0.788 > 0.376).
• there is also no significant mean difference in terms of perception towards
coupons between males and females (1.606 > 0.207).
• there is also no significant mean difference in terms of perception towards loyalty
23
card between males and females (1.602 > 0.208).
However, based on the comparisons and analysis from the tables above:
• There is significant mean difference in terms of respondents’ perception towards
value pack between males and females (0.070 < 0.0792).
• And there is significant mean difference in terms of respondents’ perception
towards product trial between males and females (0.001 < 0.973).
Implication – t-test
The significant differences found between male and female attitudes toward value pack
and product trial indicate that different genders will have different perception/attitude
towards those two variables. This finding helps marketers to work more efficiently as it
helps them to target and use the right tools on the right genders, in order to promote
product trial. Here, we observe and conclude that women significantly have a more
favourable attitude towards value packs and trying new products, compared to men.
ANOVA
F Sig.
Personal_Selling Between Groups .589 .671
Coupons Between Groups 2.480 .047
Loyalty_Card Between Groups 1.404 .235
Value_Pack Between Groups .272 .895
Buy_1_Free_1 Between Groups .276 .893
Product_Trial Between Groups 2.945 .022
24
From the ANOVA table, the six traits are being tested by using age as the independent
variable. Personal selling (F=0.589, p=0.671), loyalty card (F=1.404, p=0.235), value
pack (F=0.272, p=0.895), and buy 1 free 1 (F=0.276, p=0.893) are not significant as all
their p-values exceed the cut-off significance point of 0.05. Only coupons (F=2.480,
p=0.047) and product trial (F=2.945, p=0.022) were found to be significant.
Personal_Selling
Subset
for alpha
=.05
Respondent'sAge N 1
Duncan 41yrsandabove 20 2.6200
31-40yrs 19 2.7263
25-30yrs 27 2.8000
Below18yrs 6 2.9000
18-24yrs 78 2.9641
Sig. .410
There is no significant difference between the five age groups classified in the research in
their attitude towards personal selling as a promotional tool.
Coupons
There is significant difference between the five age groups in their attitude towards
coupons. According to the table above, those aged 31years and above, have a different
attitude towards coupons compared to those 30 years and below.
Implication – Coupons
There is difference in the use of coupons between those 31 years and above, compared to
those under 31. The implication of this data as to why there is difference in the attitudes
and use of coupons, could very well be because those 31 years and above have more
25
stable income, or more income as they progress to higher ranks with experience and age,
and thus have less financial constraints. Especially for the older demographics (50 years
and over), their children would be old enough to be earning their own income, thus they
no longer have so many dependents to support. Furthermore, based on research carried
out in the US, in year 2000, consumers saved more than USD $3.6 billion in coupons,
and the highest statistics of coupon users were all above 31 years (Montaldo, D., 2000,
online). Montaldo found that in the US, those within the age of 35- 44years and incomes
ranging from USD $50,000 to USD $76,000 was the demographic group boasting the
most coupon usage. Thus, in the Malaysian context, it could very well be the case that
those 31 years and above have more favourable attitudes towards coupons, compared to
those under 31 years.
Loyalty_Card
Subset
Respondent's Age N for alp
1ha
Scheffe 41yrs and above 20 = .04
2.8500
25-30 yrs 27 3.2222
18-24 yrs 78 3.4026
31-40 yrs 19 3.4737
Below18 yrs 6 3.7000
Sig. .308
There is no significant difference between the five age groups classified in the research in
their attitude towards loyalty card as a promotional tool.
Value_Pack
Subset
for alpha
=.05
Respondent'sAge N 1
Duncan 31-40yrs 19 3.6211
41yrsandabove 20 3.6400
18-24yrs 78 3.7923
25-30yrs 27 3.8519
Below18yrs 6 3.9000
Sig. .494
There is no significant difference between the five age groups classified in the research in
their attitude towards value pack as a promotional tool.
26
Buy_1_Free_1
Subset
for alpha
=.05
Respondent'sAge N 1
Duncan 41yrsandabove 20 3.6900
25-30yrs 27 3.7481
18-24yrs 78 3.7590
31-40yrs 19 3.8000
Below18yrs 6 4.0667
Sig. .243
There is no significant difference between the five age groups classified in the research in
their attitude towards Buy-1-Free-1 as a promotional tool.
Product_Trial
There is significant difference in product trial between those aged 41years and above
compared to those 40 years and below.
27
Conclusion – One Way ANOVA
Personal selling, Loyalty Cards, Value packs, Coupons and Buy-1-Free-1 promotional
tools affect all age groups, but there is an observed difference in the response between
those aged 31 years and above compared to younger groups when it comes to Coupons.
However, all aged groups are influenced in their attitude towards product trial by the
different promotional tools, in one way or another.
Model Summaryb
Change
Statistics
Adjusted Durbin-
Model R R Square Sig. F Change Watson
1 .705 a .480 .000 2.152
a. Predictors: (Constant), Buy_1_Free_1, Personal_Selling,
Loyalty_Card, Coupons, Value_Pack
b. Dependent Variable: Product_Trial
Adjusted R square indicates that the independent variables, namely buy 1 free 1, personal
selling, loyalty card, coupons, value pack predict 48% of the changes in product trial.
ANOVA
Model F Sig.
1 Regression 28.530 .000
28
Coefficientsa
Standardized
Coefficients
Model Beta t Sig.
1 (Constant) .822 .412
Personal_Selling .183 3.067 .003
Coupons .263 4.334 .000
Loyalty_Card .339 5.612 .000
Value_Pack .291 4.653 .000
Buy_1_Free_1 .270 4.157 .000
a. Dependent Variable: Product_Trial
Here, we observe that all the promotional tools are significant to product trial (all of the
p-values fall under 0.05). That is, all the independent factors have contributed to the
dependent factor.
There is a significant positive relationship between personal selling and product trial,
(t=3.067, p=0.003) at 5% significant level.
There is a significant positive relationship between coupons and product trial, (t=4.334,
p=0.000) at 5% significant level.
There is a very strong significant positive relationship between loyalty card and
product trial, (t=5.612, p=0.000) at 5% significant level.
There is a significant positive relationship between value pack and product trial,
(t=4.653, p=0.000) at 5% significant level.
29
strength of their impact on product trial differs. Amongst the five tested sales promotional
tools, loyalty card (0.339), is shown to be the most effective promotional tool influencing
product trial, followed by value pack (0.291), buy-1-free-1 (0.270), coupons (0.263), and
the weakest - personal selling (0.183).
The regression analysis helps marketers determine which tool is most efficient in
inducing customers to try their products. It must be noted, however, that the analysis has
different implications and applications, depending on certain factors. For example, the
nature of the product determines the choice of sales promotional tool. When it comes to
expensive items in a certain product line especially, for example, perfumes or cars, buy-
1-free-1 is usually inapplicable, thus it will not be as effective a tool in these types of
products, compared to its effectiveness on items such as those in grocery stores.
30
9.0 Limitations and Future Research
This study has provided useful information for users of this study. It has been able to
present and highlight the relationships between product trial and the five promotional
tools, namely, Personal Selling, Loyalty Card, Coupons, Buy-1-Free-1, and Value pack.
There were few, however, crucial limitations that were faced during the analysis and
preparation of the report.
TO be edited:
Time limit was one of the major limitations as it constraints the research to be limited,
therefore, more surveys could not be conducted to have a more reliable statistical result
of how consumers spending capacity varies accordingly with the different promotional
tool available. Another limitation faced was the budget given for the research. The budget
limit disables the research to expand further with the limited survey materials.
The research design used for this research was questionnaire. The questionnaire was
close-ended questions which do not allow researchers to further understand the behavior
of consumers in spending capacity in relation to promotional tools. The repetition of the
structure of the questions in the questionnaire could result surveyors not answering
properly towards the end of the questions. There were also few questionnaire results that
were inconsistent. Further alterations in the structure of the questionnaire would improve
the findings from the questionnaires.
In this survey only five promotional tools were used to analyze the spending capacity of
respondents, also be concern that there are other promotional tools not analyzed in this
survey. In order to result a reliable conclusion, other promotional tools should be
analyzed along with the other factors (besides awareness of the tools, and attitudes
towards the tools) that would affect the effectiveness of the tools, such as the spending
capacity of consumers. In addition, more psychological-linked marketing research could
be carried out in order to give more depth to the research.
Furthermore, there was a lack of easily-accessible statistical data to support some of the
observations.
31
Product loyalty could be tested as another factor because it impacts on the selection of
product with the given promotional tool at that time being. For example, the same
product of different brands may offer different promotional tool at the same time and this
will affect consumers’ choice that affects their willingness or tendency to try new
products as well. Therefore, it is recommended that future research studies the
moderating effect of product loyalty and brand choice in relation to the choice of
promotional tools that is most effective on consumers.
In Malaysia, many consumers are unaware of the importance of these surveys and
therefore do not answer at their best understanding. Consumers may be reluctant to
participate in the survey as they feel it does not matter to them. Some consumers may not
even understand the questions being asked. Researchers, or the staff conducting the
survey should be well trained to explain the importance of the questionnaires at the
beginning of the questionnaire sheet so that consumers’ awareness increases and thus
answer more effectively.
32
10.0 Recommendations
This research has investigated the effectiveness of five promotional tools used in
Malaysia’s grocery markets to induce product trial. Firstly as the findings show that male
and female shoppers respond differently towards value packs and product trials due to
variation in perceiveness of promotional tools. This is the gender differences that
underpinning the relation marketing and customer loyalty. Hence, it is recommended that
the marketers can work on the firm-customer relationship especially on the gender
differences as to persuade both gender towards product trial and gain competitive
advantage (Ndubisi 2006).
Research shown that coupon is the least effective tool and this can be supported by action
of Procter & Gambler where they reduce the coupon use few years ago (Gilbert & Jakaria
2002) However, our research contradicted with the research where we found out shoppers
aged above 30 has a positive attitude towards coupon. Hence, it is suggested that the
marketers can make use of the coupons as a promotional tool that can be targeted at those
aged 30 and above, as they perceived it as an effective tool towards saving money
Our findings also indicates that shoppers above 40 less willing to try a new product given
all the promotional tools in place. Therefore, the marketers should use other tool such as
refunds and reorganize their marketing plans when promoting new product that targeted
at this group of shoppers.
Finally, all the five promotional tools would result in product trial. The loyalty card is the
most effective tool according to out research result. This is due to the customers can get
lower price or price discount or get the redemption points to exchange for gifts by
becoming loyalty card holder. Some stores even issue loyalty card as to retain loyal
customers and enhance their store image (Bellizi & Bristol 2004). Hence, it is
recommended that the marketers can issue loyalty card as it is the most effective tool.
Personal selling is the least effective tool and hence the marketers should reduce the
budget on it and increase the budget on other promotional tools that are more effective.
33
11.0 Conclusion
In conclusion, this research makes clear of the response of Malaysian shoppers towards
the promotional tools and also identifies the most effective tool where its main strength
lies in encouraging product trial. Specifically, the study has generated a comparison of
the effectiveness of the different promotional tools in inducing one particular buying
behaviour The comparison in particular in this research should help marketers appreciate
which tool is relatively more effective in obtaining a given promotional outcome.
Loyalty card are the most efficient promotional tools where follows by value pack, buy 1
free 1, coupons, and personal selling. This ranking tells us the shoppers prefers tools that
can reward them with points and discount such as the loyalty card as well as save money
such as value pack and buy 1 free 1.It also shown that shoppers prefer those tools that
offer greater shopping convenience benefits such as loyalty card, value pack and Buy-1-
Free-1 (Ndubisi & Chew 2006). Besides that, all these promotional tools can facilitate
brand recognition and brand recall for future purchase (Gilbert & Jakaria 2002). Value
packs and Buy-1-Free-1, the second and third most effective tools, provide additional
amount for free and therefore the shoppers will purchase if it represent a fair deal for
value of money (Gilbert & Jakaria 2002). Coupon have less significant effect on product
trial as compared to other tools as it is time consuming and requires more effort than
buying products on sale (Ndubisi & Chew 2006) Hence, the marketers should create
greater awareness of benefits for these two tools.
Thus, the marketers should conduct a research on promotional tools before decide which
one to use in order to ensure their effectiveness and usefulness. By the way, the
organizations should also prudent in planning, budget and selection of promotional tools
where the most effective tools will be selected and included in the promotional plan of
the organization.
34
12.0 References
Journals
Bellizzi, J.A. and Bristol T. (2004), “An assessment of supermarket loyalty cards in one
major US market”, Journal of Consumer Market, Vol. 21, No. 2, pp. 144-154.
Honea, H. and Dahl, D.W. (2005), “The Promotion Affect Scale: Defining the Affective
Dimensions of Promotion”, Journal of Business Research, Vol. 58, pp. 543-551.
Kim, S.F. and Merrilees, B. (1998), “Cultural Values and Personal Selling, a comparison
of Australia and Hong Kong’s retailers’ promotion preferences”, International Marketing
Review, Vol. 15, No. 4, pp. 246-256.
Laroche, M. et al. (2003), “A model of consumer response to two retail sales promotion
techniques”, Journal of Business Research, Vol. 56, pp.513-522.
Lee, C.W. (2002), “Sales promotion as strategic communication: the case of Singapore”
Journal of Product and Brand Management, Vol. 11, No. 2, pp.103-114.
Liao, S.L. (2006), “The effects of non monetary sales promotions on consumer
preferences: The contingent role of product category”, The Journal pf America Academy
of Business, Cambridge, Vol.8, No.2, pp. 196-203.
Mauri, C. (2003), “Card Loyalty: A new emerging issue in grocery retailing”, Journal of
Retailing and Consumer Services, Vol. 10, pp. 13-25.
35
Ndubisi N. O. and Chew T M. (2006), “Awareness and usage of promotional tools by
Malaysian consumers: the case of low involvement products”, Management Research
News, Vol.29 No. 1/2, pp. 26-40.
Shi, Y.Z., Cheung K.M. & Prendergast, G. (2005), “Behavioural response to sales
promotion tools, A Hong Kong study”, International Journal of Advertising, Vol. 24, pp.
467-486.
Textbooks
Kotler, P. (2000), Marketing Management, Prentice-Hall International, London, United
Kingdom.
Malhotra, N.K., Hall, J., Shaw, M. and Oppenheim, P. (2004), Essentials of Marketing
Research: An Applied Orientation, Pearson/Prentice Hall, New South Wales, Australia.
Shimp, T.A. 2000, Advertising promotion, supplementary aspects of Integrated
Marketing Communications, 5th edition, The Dryden Press, United States.
Website
Montaldo, D. L., (2000). Coupon usage Statistics – 2000, viewed 5th October 2006
<http://couponing.about.com/cs/aboutcouponing/a/couponusage2000.htm>
36