IMPACT OF SALES PROMOTION ON CONSUMER BUYING

BEHAVIOUR

A Thesis Submitted to Lahore School of Economics

By

Abeera Allahwasaya

For

Award of Degree of Bachelors of Business Administration (Honors)

Double Majors in Marketing and Finance

Session: 2014 to 2018

 RESEARCH COMPLETION CERTIFICATE

Certified that Abeera Allahwasaya, ID No. 14U00297 Session 2014 to 2018 has carried out and

completed the research project entitled “Impact of sales promotion on consumer buying

behavior” under my supervision for requirement for the award of Degree of Bachelor of business

Administration Honors ( double majors( Marketing & Finance) by Lahore School of Economics.

Research supervisor

(Zehra Raza)

Lahore School of Economics

Contents
ACKNOWLEDGEMENT ................................................................................................................................... 5
ABSTRACT...................................................................................................................................................... 6
1. INTRODUCTION ..................................................................................................................................... 7
1.1 Overview ............................................................................................................................................. 7
1.2 Background ......................................................................................................................................... 8
1.3 Global Context .................................................................................................................................... 9
1.4 Pakistan Context ............................................................................................................................... 10
1.5 Research Question and Significance of Study/ Contribution to literature ....................................... 11
2. LITERATURE REVIEW ........................................................................................................................... 12
2.1. Consumer buying behavior (D) ........................................................................................................ 12
2. 2 free sample product (I) .................................................................................................................... 13
2.3 Buy one get one free (I) .................................................................................................................... 15
2.4 Price Discounts (I) ............................................................................................................................. 15
2.5 Coupons (I) ........................................................................................................................................ 16
2.6 Free trial (I)........................................................................................................................................ 16
3. METHODOLOGY ...................................................................................................................................... 17
3.1 Research type:................................................................................................................................... 17
3.2 Data type and research period: ........................................................................................................ 17
3.3 Population and planned sample: ...................................................................................................... 18
3.4 Research hypothesis: ........................................................................................................................ 20
3.5 Techniques: ....................................................................................................................................... 20
3.6 Data analysis: .................................................................................................................................... 21
3.7 Data interpretation: .......................................................................................................................... 21
3.8 Theoretical framework ..................................................................................................................... 22
4. RESULTS AND ANALYSIS .......................................................................................................................... 22
4.1 Demographics ................................................................................................................................... 22
4.2 Reliability analysis ............................................................................................................................. 23
4.3 Measurement Model ........................................................................................................................ 23
Convergent validity and Construct reliability ..................................................................................... 23
4.3.1 Factor loadings ........................................................................................................................... 23
4.3.2 Convergent Validity .................................................................................................................... 24
 4.3.3 Construct Reliability ................................................................................................................... 24
4.3.4 Discriminant Validity ...................................................................................................................... 24
4.3.5 Model Fitness Indices................................................................................................................. 25
4.4Structural equation model (path analysis) ........................................................................................ 25
4.4.1 Regression Equation for Model 1 .............................................................................................. 26
4.5 Hypothesis Testing ............................................................................................................................ 27
4.6. Discussions ....................................................................................................................................... 28
4.7 Managerial Implication ..................................................................................................................... 31
BIBLIOGRAPHY ............................................................................................................................................ 33
APPENDIXES ................................................................................................................................................ 41
Appendix A .............................................................................................................................................. 41
Questionnaire ..................................................................................................................................... 41
Appendix B Tables ................................................................................................................................. 46
Frequency table .................................................................................................................................. 46
ACKNOWLEDGEMENT

I would like to express my gratitude to all those who helped me during the whole of my project. I

gratefully acknowledge the help of my supervisor, Miss Zehra Raza, who has offered me

valuable suggestions in the academic studies. In the whole of final project, she has spent much

time to help me and provided me with inspiring advice. Without her patient instructions,

insightful criticisms and expert guidance, the completion of this project would not have been

possible.

In the end, my gratitude also extends to my family and friends who have been assisting,

supporting and caring for me all of my life.

ABSTRACT
The research reported in this thesis was on “Impact of Sales promotion on consumer buying

behavior”. The purpose of research was to study the impact of different sales promotion

techniques (Price discount, free trial, free sample, coupons and B1G1F) on consumer buying

behavior. The primary data was gathered by floating questionnaires. SPSS software was applied

to analyze data for frequencies regression parameters and cross tabulation the results were

interpreted by usual principles of statistics. The findings suggested that the price discount has a

most significant impact on the consumer buying behavior while the coupons and buy one get one

free have least impact on the consumer buying behavior.

 1. INTRODUCTION

1.1 Overview
Today the modern marketing is producing differentiated goods or services, suitable pricing and

easy access to them. Today, it has become very important to attract new customers by offering

them something different so that they become loyal to your brand. More effort and cost is

required to target new customer than retaining already exiting loyal customers (Murugananthm

& Bhakat, 2013). The firms in today’s world are a benefit cost, the firms need to rethink and

evaluate the relationship between behavior and attitude of their customers. The firms should

communicate to the customer what they have to offer. Sales promotion refers to the motivational

strategies of convincing the consumer to buy the product. Sales promotion is refers to a

communication which used to make aware of, remind or convince consumers about a firms

goods, image , ideas, community involvement, or impact on the society . The past research has

shown that the different sales promotion techniques are used by an organization in order to

attract new customers and in order to boost the sales. In accordance with Withier & Moore

(2007) it is very difficult to control a consumer’s behavior with regard to the switching of brands

and the quantity of the products being bought. The increasing interest between users regarding

sales promotion has come out between an amazing booms concerning lookup within that area.

There are massive studies which have been carried out on regarding consumer response on sales

promotion. The increasing interest in utilizes on sales promoting as like a marketing tactic

has born into an unusual increase on research among that area. According to Gilbert and Jackaria

(2002) sales promotions consist over a massive range of temporary plans in order to attract
consumers and increase sales for a short period of time and in generating a preferred response

from the customer. The sales promotion can change the buying behavior of a consumer in a

sense that sales promotion may allow a customer to but product he never intent to buy. The

marketers utilize different types of promotional strategies and tools to know what their

consumers desire and increase their sales. According to Gilbart (1999), price discounts, and Buy

one get one free were found to be appealing consumer to purchase more then they expect. The

past research shows that different sales promotion techniques have a positive impact on the

buying behavior of the consumer. Sales promotion on the products may let a consumer to make

an early purchase than he intended (Smith, 2000).

1.2 Background
The information regarding behavior of consumer directly impacts marketing strategy. Customer

buying behavior search is about the logical investigation of the procedures consumers use to

choose, secure, utilize and discard items and administrations that fulfill their necessities.

Information of customer conduct specifically influences promoting procedure (Anderson et al,

2005). Customer behavior towards the buying of a product is triggered by the sales. Amongst the

five independent variable education, age, income, birth month and credit card debt, it’s only the

education and income that are main forecasters of consumer behavior towards sampling product

(Abdul Waheed, Syeda Shawana Mahasan and Moeed Ahmand Sandhu 2014). Sale promotion

techniques, for example, coupons, and free examples can deliver great impacts on promotions

that can be seen as much as a year after the advancement. It expresses the three potential impacts

of free examples on deals: (1) a quickening impact, whereby customers start rehash acquiring of

the inspected mark sooner than they generally would; (2) a cannibalization impact, which lessens

the quantity of paid trial buys of the brand; and (3) a development impact, which actuates buying
by buyers who might not think about purchasing the brand without a free example (Kapil Bawa,

2004). The variables which can induce a consumer incorporate culture which is essential

determinant of a man's needs and conduct , social factor like reference gatherings, family,

economic well being and part, home factor where a purchaser's choices are significantly

impacted by individual attributes like sex, age, organize in lifecycle, occupation, salary, and way

of life. The organizations utilize them to build deals to retailers through exchange advancements,

while they likewise utilize promotion deals to expand same to customers through buyer

promotion. (Neslin, Scott A., 2002). Clow and Baack (2004 enrolls two kinds of offers, in

particular consumer promotion, (for example, coupons , premiums and free examples) and trade

advancements for example, exchange remittances, exchange motivators and, so on). Retailers of

purchaser merchandise utilize special incentives to welcome customers in order to convince them

to go to their stores as opposed to competitors to buy their brands, buy large quantity of products

(Nudbisi, 2005). The sales promotion strategies are more imperative than advertisement in

guaranteeing profitability of the item (Vlachvei et al., 2009). In any case, Most of research

analysts study supported the positive effects of sales promotion strategies on consumer's

purchase behavior ( Kiran & Kishore, 2012).

1.3 Global Context

Sales promotion has an interesting history and has had a noteworthy effect, both great and awful

globally. Sales promotion has engaged, moved, and persuaded consumers for over a century, and

a considerable lot of the pictures made by marketers have turned out to be social symbols—the

Marlboro Man and Tony the Tiger, to give some examples. Much has been composed about the

historical backdrop of sales promotion and how it reflects society and its entire scope of

exercises. Marketers around the globe have created and utilized an assortment of procedures
over the previous century to give customers an additional motivator to utilize their products and

services. A large number of the sales promotions offers that propel purchasers today and have

progressed toward becoming piece of their regular day to day existences have been around for

almost a century or more. The most established, most broadly utilized, and best sales promotion

apparatus is the coupons .Coupons were introduced in 1895 when the C Post Co. initially started

utilizing the coupon to help offer its new grain mark. Procter and Gamble introduced coupons in

1920, and its initial ones were coins that were useful for rebates. Sales promotion has the

particular purpose behind driving here and now offers of items or services. Since they are very

compelling in activating here and now deal. They help managers to develop successful marketing

strategies. As organizations venture into global markets, advertisers usually depend on similar

instruments that work well for them in the domestic. Nonetheless, a few sales promotion may not

work in remote markets in view of host nation contrasts. Sales promotion has a positive impact

on consumer buying behavior globally. Research shows that the impact of different types of

sales promotion techniques have a different impact on the consumers buying behavior belonging

to different countries around the globe. Sales promotions are important for newly launched

brands which operate globally in order to attract customers from all around the world.

1.4 Pakistan Context

Organizations create marketing plans to build a devoted consumer base, to fabricate associations

with that consumer and to offer incentives for their customer. Viable items and services

strategies are basic in ensuring your product is promptly open in the worldwide commercial

center. We get to see sales promotions on various brands and products when we visit large stores

in Pakistan for example Hyper Star and Metro. Sales promotion has a positive impact on

consumer buying behavior since they are getting various deals on different new product. It gives
them opportunity to occupy more in fewer prices. Various research papers show that free sample

is preferred by Pakistani consumers. The Sweepstakes and coupons have a less impact of the

purchase behavior of customers. Sales promotion techniques viable in the Pakistan may make

undesirable astonishment when utilized as a part of different nations, in view of social,

administrative and legitimate contrasts. For instance, couponing in Malaysia will probably

reverse discharge, since Malaysians discover coupons humiliating. Similarly the sweepstakes

promotion in Pakistan may not work, since betting is debilitated.

1.5 Research Question and Significance of Study/ Contribution to literature

What is the impact of sales promotion on consumer buying behavior?

The significance of this research includes the understanding of the most compelling kind of

promotional tool to contend with the rivals in the market. The better comprehension of buyer

buys conduct by retailers and advertisers. The Inclination of buyer on various limited time

instruments. After carrying out this research the marketers will have the capacity to utilize best

promotional technique to pull in consumers. The consumers will be able to view data and results

about their obtaining conduct which is influenced contrastingly by various types of sales

promotions.
 2. LITERATURE REVIEW
2.1. Consumer buying behavior (D)
Sales promotion highly impacts the decisions of the consumers and it has been stated in many of

the researches. These offers can either convince a buyer to buy a product or not to buy it.

(Nagar,smelser & Baltes, 2001). According to Schiffman and Kanuk (2004) the three views of

explaining consumer behavior are economic view, cognitive view and emotional view. Whereas

economic view has more impact as compared to the other two views. The authors also mentioned

that CBB is concerned that how a consumer is going to decide on what products he demands for ,

how is he going to evaluate that and its impact on the future purchases. Naimah and Tan (1999)

highlighted two important factors that affect consumer to purchase a particular product; sales

physical surrounding and high purchasing power. Kotler (2003) argued that economic and social

factors do play a part in shaping the consumer’s decision regarding a purchase, for example

culture peer pressure. According to Quelch(1989) the trend of usage of different types

promotions , techniques and material have increased to a very large scale globally. Schneider and

Currim (1991) argued that customer’s promotion is accepted on the base of in and the out store

sales promotion. Scults (1998) proved in his research that customer’s behavior is directly

affected by the sales promotions. Chadon, Wansink and Laurent (2000) pointed out that beyond

the price saving reasons there could be other factors that may influence a consumer’s purchase

behavior. Pramataris (2001) Talked about sampling which is good enough technique to attract

customers toward it. Will (2002) indicated that usage of promotional tools can be a good strategy

in order to give competition to the competitors on one hand and to have huge impact on

consumer behavior on the other hand. With regards to Pickton and Broderick (2005) the aim of
sales promotion is has high sales volume with fewer profits. Many others agreed that the aim of

sales promotions is to persuade consumers by introducing new products in market, targeting

those customer who have no prior experience with it (Solomon, Marshall and Stuart, 2008)

.However Esfahani and Jafarzadeh (2012) stated that there is significant relationship of

psychological variables and with sales promotion while there is no significant relationship when

it comes to sales promotion and impulsive behavior.

2. 2 free sample product (I)

Sampling is an effective way which allows a consumer to test the sample product, it enables a

consumer not to just hear about the product but also try it before making a purchase, rather than

just hearing about it, this technique influences their behavior to buy this product in now and after

(Pride and Ferrel, 2008).Consumers having an opportunity to try free samples are more likely to

buy the products later and have a tendency to become loyal customers. (Laran & Tsiros, 2013).

Free sampling promotional technique has a positive impact on consumer decision to buy a

product (Amor and Guilbert, 2009. According to Baak (2007) the sampling is a technique which

allows consumers to try out products in the market. Ndubisis (2006) proved that free sample

technique is directly proportional to consumer purchase. Free-product samples that are

distributed in the stores to consumers give them the opportunity to try the sampling product

before buying it (McGuinness et al., 1995). Free sampling is used as a strategy to convince

consumers to purchase products in order to increase sales of consumer products (Sun,

2011).Amongst different types of sales promotions, free samples has been used as an attractive

tool in generating sales and making actual buy ( Hailmen 2011). A study on free sample resulted

in showing 92% of individuals gave preference to free-product samples as opposed to coupons

(Fitzgerald, 1996).The results of Linstendt (1999) indicated that free product sample can raise
the sales by 36%-45% on start day promotion (Fowl et al., 2004). According to research

sampling is considered as least researched area of promotions ( Heil et al., 2009).In general,

according to the most marketers sampling programs creates hype for a small period of time in

consumer’s responsiveness, does increase purchase of new products and plays role in growth of

expenses on sampling programs (Fowler, 2001). Surveys provided further investigation on

utilization of samples In accordance to first survey, 69% of the consumers agreed that they

bought some of the products for which they tried free samples, while in another survey 68% of

the respondents agreed to the fact sampling was a no doubt a free of risk opportunity to attempt

newly products in market. Lastly 88% stated we “feel good" about buying a product that we have

already been tried, and 69% reported that product samples influenced them buy more than

advertisements (Estell, 2002). A National Incentive research conducted in Britain by Marketing

Magazine stated that 73.8% of customers considered free samples as the most influencing

promotional offer (Hupfer and grey, 2005). Marketers should keep in mind that consumers have

this in their minds that the free samples they are being offered is because of their high confidence

in them that testing experience will lead to later purchase (Wellner, 1998). The marketing

managers recognize the importance of free sampling. Free samples are distributed among

consumers in different retail stores in order to gain concentration and expose them to a

behavioral experience (Shimp, 2003). In addition, Banks (2003) stated that free product sampling

adds values and the brands attain strong possibilities in affecting the consumer choice and

attitude towards buying the product. Jackeria(2002) found contrary results as compared to earlier

researches; free sample products have insignificant relation with consumer’s purchase

receptivity. The impact of the promotions under study on product sample and repurchase is

general across both the genders (Nelson Oly Ndubisi, 2005) .

2.3 Buy one get one free (I)
Buy one get one free” is a promotion tool which offer extra products to the customers at low

price. The consumers are convinced easily to buy the product because they do not have to pay

any extra price and also it adds value to the customer’s purchase (Sinha & Smith, 2000).

According to Li, Sun & Wang (2007) B1G1F offer helps the retailers to boost up their sales and

finish their stock quickly. Gardener and Trivedi (1998) have written that when extra product is

being offered to the consumer without any additional price the customer will definitely buy the

product if the consumers have knew that their money is being utilized at its maximum. Buy one

get on e free promotion tool not necessarily achieve its goals of increasing sales in long run.

(Gednenk et al, 2004). A study conducted in India showed that sales promotions like offering

“free products” is not perceived favorable by consumers of the India still this type of promotion

is widely promoted in India” (Manalel et al., 2007).

2.4 Price Discounts (I)

Price discount is “reduce the price for a given quantity or increase the quantity available at the

same price, thereby enhancing value and create an economic incentive to purchase” (Raghubir &

Vorfman, 1999). Other studies found that price discounts plays a significant role in shaping a

new customer’s behavior to buy the goods being offered in the market ( Shimp, 2003). The

seasonal sales usually attract the occasional customer. This customer will go back to their

preference brand after getting benefit from the promoted products. There are very rare chances of

buying these promoted products at their actual prices (Ehrenberg et al, 1994). According to

Persy(2001) the price discount is most magnetic promotion as compared free trial and coupons.

Chiew (2006) claimed that price discount and free trial are interrelated in a way that both the

promotions costs almost the same to a marketers and have similar results in terms of response.
Others made a statement that reduced prices have a relation with other sales tools since all of

them affect each other and try to convince the customers to buy (Huff and Alden 1998).It is also

stated that massive price reduction lead to an earlier purchase(Smith and Sinha,2000).

2.5 Coupons (I)

“Coupons can be availed by individuals who gained tickets that can be exchanged for a

discounted good than its regular amount” (Nubdisi, 2006).According to Cook (2003), coupons is

exercised by the consumers to buy at fewer prices or to make a product trial. Trivedi (1998)

reported that coupons have been utilized as key advancement instruments. As a matter of fact,

coupons have expanded brand exchanging and impact buys, showing that consumers are affected

by the rebate proclaimed in the coupon. Wayne (2002) put light on three coupon programs which

demonstrated that the modern brands increased incentive deals through trials and upcoming non-

coupon buys. They also suggested that coupon promoting was between the least utilized

showcasing techniques by customers. According to Kotler and Armstrong (2006) the electronic

coupon machines are a good enough apparatus to keep the records of clients. It can obtain history

and in view of that, vouchers can be given to clients based on their bills. Gilbart and Gacteria

(2002) discovered that coupon does not impact the quantity of items shopped by shopper. A few

scientists showed that shoppers do buy since they are getting price reductions in the coupons, so

coupons can be used as a intelligent marketing tool (Peter, 1996). Silva-Risso (2000) found out

coupon to be an ineffectual instrument in Asian countries.

2.6 Free trial (I)

A free trial offer can be characterized as, an offer to the customer to involvement, at no money

related cost, all or part of a center, increased or encouraging administration that the buyer does

not at present utilize or is being offered by a specialist organization other than the one right now
utilized (Kotler 2000). The word "Free" is consistently utilized as a part of offerings and

advancements, especially in item trials and in promoting claims. In any case, evidence proposes

that advertisers' pervasive utilization of "free" may cause consumers issues in assessing the

estimation of the offer (Munger and Grewal, 2001). Free trials have been seen as a limited time

period method for diminishing dangers inborn in another purchase (Tan, 1999). Free

administration trials merit examined for two reasons. To begin with they are one of the

imperative cases of unjust trade amongst provider and buyer – one that is probably going to

prompt a feeling of commitment among the individuals who receive the trial offer. Second, they

are an extremely regular limited time gadget (Laochumnanvanit, Krongjit and Bednall, David H.

B. 2005). Trying a product before buying is one of the motivators or limited time procedures that

advertisers offer to customers to decrease risks in a buy (Mitchell and Greatorex, 1993).

3. METHODOLOGY
3.1 Research type:
My research topic is Impact of sales promotion on consumer buying behavior. The type of

research used is Qualitative in nature. The goal of the research is to gauge the effect of sales

promotion on consumer buying behavior. However this examination is brought out through

quantitative method. The Questionnaires were distributed among the respondents to test the

perspectives of individuals towards the different sales promotion techniques.

3.2 Data type and research period:

The data type is the primary. The data type is the primary. All the data is gathered through

questionnaires, since the information required for this research was not accessible already

henceforth it was gathered for the first time for this research. The questionnaires were filled
online and offline both in order to collect the responses. The research period was from October

2017 to May 2018, during which the data collected was analyzed and results were produced.

3.3 Population and planned sample:

The questionnaires were flowed among 200 respondents. The sample size was taken from

Lahore. Inside Lahore, understudies from universities like Lahore School of Economics , FAST

NUCES, LUMS, Kinnaird college were a piece of sample. Since the target group ranged from

18-37 above of age, the questionnaires were filled by students, and faculty members of the

institutions mentioned above.

Variable Creator Year No. of items

Buying Behavior (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015 5

Mughal,Asif

Mehmood & Bilal

Ahmad)

Free sample (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015 5

Mughal,Asif
 Mehmood & Bilal

Ahmad)

Coupon (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015 5

Mughal,Asif

Mehmood & Bilal

Ahmad)

B1G1F (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015 6

Mughal,Asif

Mehmood & Bilal

Ahmad)

Price discount (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015 5
 Mughal,Asif

Mehmood & Bilal

Ahmad)

Free trial (Mohamed Dawood 2016

Shamout )

(Aurangzeb 2015

Mughal,Asif

Mehmood & Bilal

Ahmad)

3.4 Research hypothesis:

H1: Coupon has a positive relationship towards consumer buying behavior

H2: Price discounts has a positive relationship towards consumer buying behavior

H3: Free sample has a positive relationship towards consumer buying behavior

H4: B1G1F has a positive relationship towards consumer buying behavior

H5: Free trial has positive relationship towards consumer buying behavior

3.5 Techniques:
The technique which is used for this research is structural equation modeling (SEM). Structural

Equation Modeling is a very general, very extremely broad, capable multivariate examination
strategy that incorporates particular forms of various different investigation techniques as

uncommon cases. The SEM can be additionally separated into two sections which are the factor

analysis and regression analysis. After the primary data collected, the observed variables will be

investigated by use of path analysis while latent variables will be analyzed by using confirmatory

factor analysis. The Confirmatory factor analysis (CFA) and path analysis both are models of

Structural equation modeling (SEM).

3.6 Data analysis:

In order to analyze the data, the software that is used is Amos and SPSS. SPSS was used to

perform data entry and analysis and to create tables and graphs .It helped to look for reliability

analysis of overall variables and between different variables. SPSS helped in creating the

frequency table of demographics. While in AMOS we drew models graphically using drawing

tools, it performs computation for SEM and displays the result. CR and AVE table was created

on the excel sheet, on the basis of estimates from Amos.

3.7 Data interpretation:

Once the data is analyzed, it would be interpreted with the help of the articles in order support

the research being carried out .The analysis of the data would be done by running different

statistical techniques on using different means such as questionnaires.

3.8 Theoretical framework

Free sample

Free trial

Coupons discount Consumer buying

behavior
Buy one get one
free
Price discount

4. RESULTS AND ANALYSIS

4.1 Demographics
The Data was collected from 200 respondents, who filled out the questionnaires based on

the impact of sales promotions on the consumer buying behavior. Among these 200 respondents,

57.3% of them were females while 42.7% were males. Majority of the respondents (40.7%) had

monthly income of 200,000 and above. About 31.2% of the respondents had income ranging

from 100,000-200,000. While 20.6% had income ranging from 51,000-100, 00 and 6.5% had

income below 50,000. More than half of the respondents (50.8%) had age in between 18-22,

While 41.7% of the respondents had age ranging from 23-27. Only 6.5% of the respondents had

age 28-37 and only 1.5% of the respondents were of age above 37. The sample profile is shown

in the table below:

4.2 Reliability analysis
Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of items

are as a group.. Cranach Alpha test is used to check the reliability of the instrument. As

indicated by (Churchill, 2005), the worthy estimation of alpha coefficient ought to be over 0.70.

The overall adequate level of Cronbach alpha is 0.7-0.95 (Schmitt, 1996). Cortina (1993) noted

more than 20 years prior that it was normal for creators to expect that showing that alpha was

more prominent than 0.70 was adequate to consider no further scale improvement was required,

prompting the measurement basically being displayed in thinks about without promote

translation. The overall Cronbach Alpha was 0.917 which acceptable with respect to the

benchmark. The individual score lies between 0.705 for consumer buying behavior variable to

0.892 for free sample variable. The results are shown in the tables below:

4.3 Measurement Model

Convergent validity and Construct reliability

4.3.1 Factor loadings

“Factor loadings represent how much a factor explains a variable in factor analysis. Factor

loadings can range from -1 to 1. Factor loadings close to -1 or 1 show that the factor strongly

affects the variable. Factor loadings close to zero indicate that the factor has a weak affect on the

variable” (Helmirach, 2006). The cut off value for factor loading is more noteworthy than 0.5

(McColl, 2011). The benchmark for factor loadings was 0.5 and above. The factor loading values

go between 0.5 of consumer buying behavior to 0.8 of price discount along these lines all

esteems existing in the adequate scope of factor loading. However, three questions were skipped

since they didn’t meet the benchmark of the factor loading and were below 0.5.
4.3.2 Convergent Validity
“Convergent validity essentially alludes to how much two measures of develops that

hypothetically ought to be connected are in actuality related” (shrima, 2010).

The AVE of each construct above 0 .50 shows sufficient convergent validity (Dyne 2007). The

benchmark for AVE is 0.5 and above. All AVE values fall within the acceptable range as they

start from 0.43 for Emotional power of music and go up to 0.61 of Coupons. Therefore all the

AVE’s of the variable meet the benchmark of 0.5 and above which shows good enough

convergent validity.

4.3.3 Construct Reliability

Construct reliability is “how much a test measures what it claims, or implies, to gauge" (Shrim,

2011). It basically refers to whether a scale or test measures the construct adequately.

The construct reliability, particularly (CR) which is more than .70 show sufficient internal

consistency (Nunnally, 1978).

The benchmark for the construct reliability is 0.7 and above. The results show all the values of

CR are meeting the criteria of 0.7 which indicates adequate internal consistency.

4.3.4 Discriminant Validity

In order to check discriminant validity, squared inter-construct correlations for pairs of

constructs was compared with the AVE of each construct.

If all AVE scores are larger than the corresponding highest squared inter-construct correlation

estimates, this is adequate evidence for discriminant validity (Kamdar, 2007).

The discriminant validity under above criteria holds for price discount, Coupon, free sample, free

trial and B1G1F since in all of them AVE is greater than squared correlations.

4.3.5 Model Fitness Indices

The estimations of Model Fitness Indices demonstrate the worthiness of the model as far as its

general decency of fit measures and consider the huge covariance.

The results showed that the measurement model fitted the data adequately: CMIN/DF = 1.72,

(NFI) = 0.8, (GFI) = .90, (TLI) = .85, (CFI) = .85 and (AGIF) = 0.78. These results show that the

proposed model could be accepted (Hair et al.2011) .The satisfactory level of CMIN/DF is the

value is between 1 and 3 in order to accept the values vales of TLI, CFI and GFI, the value must

range between 0 and 1 and to accept it should be greater and equal to 0.9. The NFI and NNFI

values also range between 0 and 1 and the acceptable value is greater than 0.95 (Cudeck, 1993).

The bench mark for CMIN/DF ranger from 1 to 3 While the benchmark set for AGFI, GFI, NFI,

TLI, CFI was 0.7 and above in order to accept the model. The results showed CMIN/DF to be

1.942, AGFI to be 0.782, GFI to be 0.820, NFI to be 0.802, TLI to be 0.878, CFI to be 0.892. All

of the values meet their respected criteria which mean that the measurement model fitted the data

adequately.

4.4Structural equation model (path analysis)

R square basically defines the relationship between the variability i the dependent variable as a

result of the independent variable. The value of R square is 0.347, which means the all the

independent variables have 34% impact on the dependent variable.

The adjusted R square basically indicates the impact of important independent variables on the

dependent variables. Here in this case, the adjusted R square comes out to be 0.330, which

means the independent variables have a 33% impact on the dependent variables. The Adjusted R

square is less than the R square which means its good enough.

Results of Analysis of ANOVA shows that the independent variables; price discounts, free

Sample, Coupon, B1G1F, free trial significantly predict the dependent variables as the “F” value

is greater than 1.

According to the above table; dimension, which has most impact on consumer buying behavior,

is price discount.

The equation for the regression for each dimension as; Y= 1.401 + 0.429PD - 0.023C +

0.142FS– 0.083B1G1F+0.166FT

A small p-value which is less than or equal to 0.5 indicates a strong evidence against the null

hypothesis, so on this basis we reject the null hypothesis. A large p-value which is greater than

0.5 indicates weak evidence against the null hypothesis, so on this basis we fail to reject the null

hypothesis.Here, H2 (price discount), H3 (Free sample), H4(B1G1Fl) and H5(Free trial)

hypothesis are accepted since its P values are less than 0.5 and comes to be 0.00, 0.00, 0.005 and

. While H1 (Coupon) and H4 (B1G1F) are rejected since its P value is greater than 0.5 that is

0.610 and 0.100

4.4.1 Regression Equation for Model 1

Equation:

Consumer buying behavior= 1.401+0.023 C +0.142 FS + 0.429 PD +0.166 FT -0.083 B1G1F

According to the equation, for one unit change in Coupon there would be 0.023 units increase in

consumer buying behavior keeping all else constant. Similarly for one unit change in free sample

there would be 0.142 units increase in CBB keeping all everything else constant. Also for one

unit change in price discount there would be 0.429 units’ addition in consumer buying behavior

keeping all else constant. While for one unit change in free trial there would be 0.166 units

increase in consumer buying keeping all else constant. Lastly for one unit change in B1G1F

there would be 0.083 units decrease in consumer buying behavior keeping all else constant.

4.5 Hypothesis Testing

To test the proposed hypothesis of the research statistically, multiple regressions was run to

investigate the relationship of Coupons, free sample, free trial, price discounts and buy one get

one free with consumer buying behavior. The hypothesis, t-statistics value and the coefficients of

the variables are as follows:

H1. Coupon has a positive relationship towards consumer buying behavior.

Coupon didn’t come out to be significant with consumer buying behavior. The P value of coupon

is more than 0.5 that is 0.610. H1 was stated “Coupon has a positive relationship towards

consumer buying behavior “as a result we reject H1.

H2. Price discounts has a positive relationship towards consumer buying behavior

Price discount is coming out to be extremely significant with consumer buying behavior.

Consumer buying behavior has a positive estimate that is 0.429 with significance level of 0.000.

H2 was stated as “Price discounts has a positive relationship towards consumer buying

behavior” As the results are similar so we accept H2.

H3. Free sample has a positive relationship towards consumer buying behavior

Free sample is coming out to be extremely significant with consumer buying behavior.

Consumer buying behavior has a positive estimate that is 0.142 with significance level of 0.000.

H3 was stated as “Free sample has a positive relationship towards consumer buying

behavior”. As the results are similar so we accept H3.

H4. Buy one get one free has a positive relationship towards consumer buying behavior

Buy one get one free didn’t come out to be significant with consumer buying behavior. The P

value of buy one get one free is more than 0.5 that is 0.100. H4 was stated “Buy one get one free

has a positive relationship towards consumer buying behavior “as a result we reject H4.

H5. Free trial has positive relationship towards consumer buying behavior

Free trial is coming out to be extremely significant with consumer buying behavior. Consumer

buying behavior has a positive estimate that is 0.166 with significance level of 0.005. H5 was

stated as “Free trial has positive relationship towards consumer buying behavior”. As the

results are similar so we accept H5.

4.6. Discussions
The main objective of the research was to investigate impact of sales promotions on consumer

buying behavior. In this research we looked at different types of sales promotions (coupon, free

sample, free trial, price discount and B1G1F) and their relation and impact on consumer buying

behavior. Sales promotion is one of the four parts of a promotional mix. Sales promotion has a

significant importance in marketing campaign. It comprises of various types of incentive tools

which are designed to animate faster or extraordinary buy of specific item by buyers but are
mostly short term. (Kotler at.el., 2013). The results of the hypothesis concluded that the free

sample, free trial, B1G1F, and Price discount have a positively significant impact on the

consumer buying behavior. Whereas the results of the research have shown that coupon does not

have a significant relation with consumer buying behavior. The Research showed that Price

discount is considered to be most attractive sales promotion by individuals of Pakistan while

Coupons and buy one get one free have a least impact on the buying behavior of the customers.

There is a more trend of prices discounts offers at Pakistan retail stores and different shopping

outlets as compared to other Buying promotional offers.

The impact of free samples on consumer buying behavior is positively significant. The

consumers try to avail the opportunity of free samples and are likely to buy and become sincere

customers later on (Laran and Tsiros, 2013). The use of free samples has a great impact on brand

name since they are building trust by letting its customers to try the product before actually

buying it (Amor and Guilbert, 2009). The study showed that free sampling offer had a

significant relationship on consumer buying behavior (Chew,2006) .

Buy-one Get-one free does not have a positive significant impact on consumer buying behavior.

The extra packs are although liked by consumers but there is doubt in the mins of consumers that

the product might not be of good quality (Percy, Rossiter, and Elliott, 2001). B1G1F promotion

scheme does achieve its goals, such as boosting up sales significantly but for a shorter period of

time, which means it is less impactful when it comes to long term plans (Gedenk et al., 2004).

The buy one get one free marketing technique was found out to be least attractive type in this

research.
The offer for example, "buy one get one free," are oftentimes used to create spontaneous buy but

this offer might not work in the long term marketing objectives (Inman et al., 2009).

Price discount has a positively significant impact on consumer buying behavior. Price discount is

"diminish the cost for a given amount or increment the amount accessible at a similar cost,

accordingly upgrading esteem and make a monetary motivating force to buy"(Raghubir and

Corfman, 1999). The price discount according to this research paper came out to be the most

availed sales promotion. According to research 64% of the online consumer wait and buy when

they are being offered price discounts. Out of which 62% of the women shoppers are those who

are always interested in price discounts and sales as compared to 57% of the men shoppers

(Stacey Rudolph, 2014). The retailers should implement price discount offers in a good manner

in the markets to gain profit maximization.

The free trial has a positive significant impact on consumer buying behavior. But a customer

won't purchase from you in the event that they engage fears, and don't confide in you, or have

ever had any terrible experience while trying your product (Debelak, 2006). Consumers lean

toward purchasing from retailers who share their feelings with them. Retailers ought to interface

sincerely with customers by influencing them to feel at home, revealing to them reality, awing

them, and indicating affection and thankfulness and offering them free trials. These way

consumers are attracted and may stay as loyal customer to your brand (Rust et al, 1993). Free

service trial offers can be used marketers in order to gain confidence of their customer by

offering high value product and giving them chance to avail services in future as well. It can be

an effective technique that can used to build brand image.

The coupon does not show a significant impact on consumer buying behavior. According to

Wayne (2002) in his research find out that coupons promotion was amongst the least use and

least accepted promotional tool among the customers. Gilbert and Jackaria’s (2002) found that

coupon has insignificant impact on quantities of product bought by a customer. The coupon

marketing technique was found out to be least attractive type in this research.

4.7 Managerial Implication

This research tries to throw light on the impact of sales promotion on consumer buying behavior.

It considered different kinds of offers which included coupon, free example, free trial, value

rebates and B1G1F. Sales promotion is assumed to be a critical part in the advertising projects of

advertisers and retailers. The sales promotion are not just powerful in accomplishing deals as

they are likewise more savvy contrasted with other coordinated showcasing specialized

instruments, for example, advertising. The results demonstrated that the price discount was the

most alluring sort of offer. While other types of promotions additionally has a huge effect of

purchaser purchasing conduct with the exception of coupon and buy one get one free which has

the minimum effect. The results of this research can help the business precision, business

visionary and other related advertising work force in encircling systems identified with choice

for offering products. Further, other variables of the sales promotion which have not been studied

in this research can be viewed as together for additionally research to have more extensive

degree in marketing. Future investigation can be performed at different areas of the Pakistan with

various statistics and at different portions. The outcomes demonstrate that the purchasers' state of

mind towards various special apparatuses on purchasing behavior is ideal. It demonstrated that

sales promotion tools are supplementary or integral to existing business as an additional

promotional strategy. This research essentially showed that purchaser buying conduct were
influenced by promotional techniques, for example, value rebates, coupons, free examples , free

trial and buy one get one free. Moreover, the structure gives new bits of knowledge into the

comprehension of how Pakistani residents react to different promotional tools offered by

advertisers and the effects on their purchasing conduct, which might be fundamental for

advertisers with a specific end goal to use exact sales techniques to promote products.
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APPENDIXES
Appendix A

Questionnaire
Personal Info:

Gender:

 Male

 Female

Age:

 20-25 Years

 25-30 Years

 30-35 Years

 35-40 Years

 40-45 Years

 Above 45 years

Household income:

 30000-40000

 40000-50000

 50000-60000

 60000-80000

 above 80000
 I: Price Discount

Strongly Disagree Neutral Agree Strongly

Disagree Agree

If a brand offers price discount that could be a

reason for me to buy it.

A price discount has allowed me to buy another

brand which I do not regularly buy.

I usually buy the same brand even when I have

a price discount on the other brands.

When I buy a brand that offers price discount, I

feel I am getting a good buy.

A price discount has allowed me to buy the

product earlier than planned.

I: Coupon Discount

Strongly Disagree Neutral Agree Strongly

Disagree Agree

I usually buy the same brand even when I have

a coupon on the other brands

Compared to most people, I am more likely to

buy brands that offer coupon.

A coupon has allowed me to buy more

quantities of the same product.

A coupon has allowed me to buy the product

earlier than planned.

I buy a brand that offers coupon instead of price

discount

I: Free Sample

Strongly Disagree Neutral Agree Strongly

Disagree Agree

I usually buy the product that satisfied me after

trying a free sample of it

When I visit a shop, I always ask about the free-

product samples

I prefer buying from the shops that give free

product samples

Free sample is important to me before making a

purchase decision

I usually look for free samples of new products

 I: B1G1F

Is B1G1F one of the most attractive promotion? Strongly Disagree Neutral Agree Strongly

Disagree Agree

Compared to most people, I am more likely to

buy brands that offer (B1G1F).

(B1G1F) allows me to buy more quantities of

the same product.

I usually buy the same brand even when I have

a (B1G1F) on the other brands.

(B1G1F) has allowed me to buy another brand

which I do not regularly buy.

Compared to most people, I am more likely to

buy brands that offer (B1G1F).

I: Free Trial

Strongly Disagree Neutral Agree Strongly

Disagree Agree

Free trial is beneficial overall.

Free trial brings value-quality .

Free trial reduces risk of money wastage.

Free trial helps you to make buying decision

quicker.

Free trial persuades you to buy the new product

in market.

I: Buying Behavior

Strongly Disagree Neutral Agree Strongly

Disagree Agree

I use much time and effort to by the best quality

prouduct.

I often feel confused because there are many

brands to choose.

I buy as much as possible at sale prices.

I look very carefully to find the best value for

money.

To get variety, I shop in different stores and buy

different brands
Appendix B Tables

Frequency table
Demographics Categories Percent

Gender Female 57.3

Male 42.7

200,000 and

Income above 31.2

100,000-

200,000 40.7

51,000-100,000 21.6

below 51,000 6.5

Age 18-22 50.8

23-27 41.7

28-37 6.0

Above 37 1.5

Cronbach for all variables

Dependent variable Independent variables No. of items Cronbach Alpha

Consumer buying Price discount 28 0.917

behavior Coupons

Free sample

Free trial

Buy one get one free

Individual Cronbach

Variable No. of items Cronbach Alpha

Consumer buying behavior 5 0.705

Price discount 4 0.834

Coupons 4 0.857

Free sample 5 0.892

Free trial 5 0.867

Buy one get one free 5 0.851

Confirmatory Factor Analysis

Variable Factor Loading AVE Construct reliability

Consumer 0.495,0.62,0.568,0.659,0.537 0.555 0.715

buying behavior

Price discount 0.719,0.68,0.78,0.819 0.566 0.839

Coupon 0.753,0.821,0.89,0.645 0.612 0.862

Free sample 0.542,0.864,0.855,0.83,0.86 0.64 0.897

Free trial 0.617,0.743,0.754,0.816,0.837 0.574 0.869

B1G1F 0.617,0.735,0.689,0.752,0.846 0.535 0.851

Discriminant validity

Variable (Covariances)2 AVE Discriminant validity

Consumer BB 0.4, 0.18,0.19,0.08,0.11 0.335 Does not Hold

Price discount 0.48,0.12,0.27,0.03, 0.566 Holds

Coupon 0.2,0.4,0.13,0.18 0.612 Holds

Free sample 0.19,0.12,0.27,0.21,0.21 0.64 Holds

Free trial 0.11,0.03,0.13,0.21,0.14 0.574 Holds

B1G1F 0.08,0.27,0.42,0.22,0.14 0.535 Holds

Model fitness indices

Index Default model

CMIN/DF 1.942

AGFI 0.782

GFI 0.820

NFI 0.802

TLI 0.878

CFI 0.892

Co-efficient of variables

Estimate S.E. C.R. P Label

avgcb <--- avgc -.023 .045 -.511 .610

avgcb <--- avgfs .142 .041 3.485 ***

avgcb <--- avgpd .429 .050 8.585 ***

avgcb <--- avgft .166 .060 2.787 .005

 Estimate S.E. C.R. P Label

avgcb <--- avgb1g1f -.083 .050 -1.645 .100

Model summary indices

Adjusted R Std. Error of

Model R R Square Square the Estimate

1 .589a .347 .330 .54660

ANOVA table

ANOVAa

Sum of Mean

Model Squares df Square F Sig.

1 Regression 30.668 5 6.134 20.529 .000b

Residual 57.663 193 .299

 Total 88.331 198

a. Dependent Variable: avgcb

b. Predictors: (Constant), avgft, avgpd, avgb1g1f, avgfs, avgc

Coefficients

Coefficientsa

Unstandardized Standardized

Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.401 .295 4.743 .000

avgpd .429 .063 .493 6.818 .000

avgc -.023 .065 -.029 -.350 .727

avgfs .142 .051 .200 2.769 .006

avgb1g1f -.083 .064 -.094 -1.297 .196

avgft .166 .069 .160 2.417 .017

a. Dependent Variable: avgcb

Regression weights
 Estimate S.E. C.R. P Label

Consumer behavior <--- Coupon -.023 .045 -.511 .610

Consumer behavior <--- Free sample .142 .041 3.485 ***

Consumer behavior <--- Price discount .429 .050 8.585 ***

Consumer behavior <--- Free trial .166 .060 2.787 .005

Consumer behavior <--- Buy one get one free -.083 .050 -1.645 .100