Behavioural Response to Sales Promotion Tools

A Hong Kong study

Yi-Zheng Shi, Ka-Man Cheung & Gerard Prendergast
Hong Kong Baptist University

INTRODUCTION

The accountability of marketing communications expenditure has long been under attack. Billions of dollars are spent on marketing communications every year, and there is gathering literature on how effective (or ineffective) marketing spending is, i.e. on 'marketing productivity' (Rust et al. 2004). More often than not, productive marketing is considered to be marketing that has a positive impact on the bottom line.

As Hong Kong continues to ride out a recession, households shop more often than before in search of lower-priced goods (Taylor Nelson Sofres 2003). As a result, many consumers are planning their shopping trips carefully in advance. In response to this, retailers, including supermarkets, are using sales promotion tools more often to attract the increasingly calculative customers, and thus to enlarge their market share and sales revenue.