Customers Behaviourial Responses to Sales Promotion: The Role of Fear of Losing Face Nelson Oly Ndubisi; Chiew Tung

Moi Asia Pacific Journal of Marketing and Logistics; 2005; 17, 1; ABI/INFORM Global pg.32

by Nelson Oly Ndubisi, School of Business and Economics, Monash University Malaysia, 46250 Petaling Jaya, Selangor, Malaysia and Chiew Tung Moi, School of Business and Economics, University of Malaysia Sabah, 88999 Kota Kinabalu, Malaysia Abstract This research evaluates the impact of sales promotional tools, namely coupon, price discount, free sample, bonus pack, and in-store display, on product trial and repurchase behaviour of consumers. In addition, the moderation role of fear of losing face (or embarrassment) on the relationship between the sales promotional tools and product trial was examined. The sample points for the research were supermarkets in Kota Kinabalu, Malaysia. A total of 420 randomly selected customers were surveyed using structured questionnaire, out of which, 312 usable responses were received. The results of data analysis show that price discounts, free samples, bonus packs, and in-store display are associated with product trial. Coupon does not have any significant effect on product trial. Trial determines repurchase behaviour and also mediates in the relationship between sales promotions and repurchase. Fear of losing face significantly moderates the relationship between in-store display and product trial. Details of the findings and their implications are discussed. Keywords: Coupon, Price discount, Free sample, Bonus pack, Instore display, Product trial, Repurchase, Fear of losing face, Malaysian Customers. Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

Introduction The growth of research in the use of sales promotion as a marketing strategy was precipitated by the increasing importance of this marketing lever. For example, there is a large body of research on consumer responses to sales promotions (e.g., Bawa & Shoemaker, 1987 and 1989; Blattberg & Neslin, 1990; Leone & Srinivasan, 1996; Huff and Alden, 1998). Though these studies provide important insights into the effects of sales promotions, the usefulness of most in predicting the effects of sales promotions on product trial and repurchase behaviour of consumers is limited as they place too much emphasis on coupons at the expense of other equally important promotional tools. In other words, more work needs to be done to investigate (in tandem with coupon) the effects of other sales promotional tools such as free sample, bonus pack, price discount, and in-store display on product trial and repurchase behaviour, especially among Malaysian consumers, whose behavioural responses to promotional strategies are ill understood due largely to lack of research on them. The moderation role of fear of losing face has received even less consideration. Even the extant literature on these relationships till date remains the Western perspective; there is no known research focusing on the Malaysian consumers. Since understanding the behavioural responses of customers to sales promotion strategies, as well as the role of fear of losing face on the relationship between promotional tools and product trial is salient in customer management and in designing effective sales promotion strategies especially in Malaysia, important impetuses for this research are established. Literature Review According to Shimp (2003), sales promotion refers to any incentive used by a manufacturer to induce the trade (wholesalers, retailers, or other channel members) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it. Retailers also use Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

promotional incentives to encourage desired behaviours from consumers. Sales promotion is more short-term oriented and capable of influencing behaviour. Totten & Block (1994) stated that the term sales promotion refers to many kinds of selling incentives and techniques intended to produce immediate or short-term sales effects. Typical sales promotion includes coupons, samples, in-pack premiums, price-offs, displays, and so on. Sales promotional tools, when used strategically in various industries not only increase brand awareness, but also encourage consumers to try new products. For example, Blackwell et al. (2001) explained that a manufacturer might utilize coupon incentives to encourage consumers to try a new flavoured product at a discounted price, instead of buying the same flavour they normally do at full price. Therefore, this incentive may reduce consumers' perceived risk associated with trying a new, less-familiar product for the first time (Blackwell et al. 2001). Blackwell and colleagues argued that new products are more apt to succeed when consumers can experiment with or try the idea on a limited basis, with limited financial risk. Robinson and Carmack (1997) stated that coupons have been used to produce trial. According to Cook (2003), coupons are easily understood by the consumer and can be highly useful for trial purchase. "With more than 80% of the American population in all demographics using coupons, marketers know that a strong coupon strategy is one of the most effective ways to directly motivate trial," said Charles Brown, vice president of marketing for NCH Marketing Service co-chair of the Coupon Council (Press Releases, 7/8/2003). Gilbert and Jackaria (2002) concurring to the popularity of coupon reported that coupon is ranked last as the promotional least widely used by consumers and least influence on product trial. Other studies (e.g. Peter & Olson 1991; Gardener & Trivedi 1998; Darks 2000; Fill 2002) have reported the importance of coupons as a sales tool.

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Price promotion does influence new product trial (Brandweek, 1994). In a different study, Ehrenberg et al. (1994) found that the shortterm peaks in sales were due primarily to purchases made by occasional users of a brand rather than by new customers. Furthermore, the study concluded that these occasional users, after taking advantage of the price reduction, would most likely return to their favourite brands in their portfolio rather than buy the promoted brand at full price. However, Shimp (2003) and Fill (2002) among other extant studies have documented a link between price promotion and product trial. Free sample is another important promotional tool often used by marketers. Marketing managers recognize the importance of product trial and direct behavioural experience with a product. They often mail free samples of products to consumers so that consumers can try the products for themselves, rather than just hear about the products (Kardes, 1999). However, Gilbert and Jackaria (2002) found that a free sample as a promotional offer had no significance on consumers' reported buying behaviour, whereas Pramataris et al. (2001), Fill (2002), and Shimp (2003), have shown otherwise. Lee (1963) mentioned that factory bonus pack is used to increase consumer trial ofthe brand. Gardener andTrivedi (1998)foundthatlargerpack-age size and accompanying advertising of the offer tended to make the promotion noticeable. Since more ofthe product is included at no extra cost, consumers can be persuaded to buy the product if they feel it represents a deal that produces the greatest value for their money. According to Gilbert and Jackaria (2002), packs with "buy-one-get-one-free" may not increase brand awareness before trial purchase because the customer will only come across the product once in the store (unlike samples or coupons), however, if the promotion is noticeable it will facilitate brand recognition and brand recall for future purchases. Since an additional amount is given for free, consumers may be persuaded to buy the product if they feel it represents a fair deal that provides value for money. Ong et al. Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

(1997) found that consumers appeared to be slightly sceptical ofthe bonus pack offer, but somewhat more trusting ofthe price and quantity claimed. In other words, believability of the bonus pack offer was weak, however, they would likely buy one bottle and not buy more than one bottle they concluded. The report speculated that this happens because consumers suspect that manufacturers do raise prices slightly in conjunction with bonus pack offerings. Product trial involves actually trying or using a product (Kardes, 1999). According to Peter and Olson (1996), trialability refers to the degree to which a product can be tried on a limited basis or divided into small quantities for an inexpensive trial. Banks (2003) wrote that with sales promotion, brands have a chance to quickly affect consumer choice and behaviour by adding value through an on-pack offer, by achieving incremental display or by encouraging trial via sampling and/ or couponing. According to Schindler (1998), a price promotion that is designed to evoke attributions of responsibility could be expected to appeal to consumers more than one that does not evoke such attributions, and thus have a greater ability to create product trial among consumers. Wayne (2002) found a link between sales promotion and product trial. Chandon, et al. (2000) indicated that sales promotion may be attractive to highly promotion prone consumers for reasons beyond price savings. These highly promotion prone consumers may switch brands to receive "special" deals that reflect and reinforce their smart shopper self-perception. They concluded that highly promotion prone consumers might try a new product that has promotion. Based on the issues and discussion raised above, the following hypotheses are generated for verification: HI: There is a significant positive relationship between (a) coupon, (b) price discount, (c) free sample, (d) bonus pack, and (e) in-store display, and product trial. Repurchase or repeat purchase varies depending on the durability of the product. For non-durables, it means to buy again after Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

the first purchase or trial, while for durables which may not require another purchase, it could mean a willingness to re-buy or to make at least one prescription to others. Repeat is easy for consumerpackaged goods, but it really means the trial was successful-the buying unit was pleased (Crawford and Benedetto, 2003). Blackwell, Miniard and Engel (2001) wrote that repurchase intentions "reflect whether we anticipate buying the same product or brand again." According to the trial and repeat model by Thomas (1993), it is generally assumed that of all potential buyers in a given time period, only those who are aware of the new product could potentially try it (trial), and only those who try it could potentially buy it again (repeat). Thomas also argued that the magnitude of planned distribution and promotion expenditures (advertising, sales promotions, sales force, and so on) could affect initial trial of the brand. On the issue of direct impact of promotion on repurchase behaviour, there has been a long debate. Mixed findings have emerged, some reporting a direct link, others arguing for an indirect relationship via product trial. Lately, researchers (e.g. Davis, Inman, & McAlister, 1992; Ehrenberg, Hammond, & Goodhardt, 1994) concluded that there may be no relationship between promotion and repeat purchasing. This leads to the next hypotheses. H2: There is a direct positive relationship between product trial and product repurchase H3: sales promotion strategies namely, (a) coupon, (b) price discount, (c) free sample, (d) bonus pack, (e) in-store display and product repurchase. Fear of losing face is another of this study's important construct. Dhar and Hoch (1996) posited that fear of negative attributions (e.g., "cheap" or "low class") by others about coupon users may limit the Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN Product trial mediates in the relationship between the

impact of coupons on sales. Researchers have found that many African Americans and Hispanic Americans have negative attitudes toward coupons, partly because coupons are a sign of low class or inability to pay full price (Green, 1995). Kashani and Quelch (1990) reported that Japanese consumers are still embarrassed to redeem coupons even though they have been using it since 1976. According to Singelis and Sharkey (1995), consumers from collectiv-ist societies are particularly sensitive to how others view them. Hence, they have been found to be more prone to embarrassment than people from individualist societies. Strongly related to embarrassment is the concept of "saving face," which is particularly strong in countries with strong Confucian traditions (Hofstede and Bond, 1988). Huff and Alden (1998) concluded that because they are usually redeemed in public, coupons might produce a particularly strong fear of embarrassment. Beside fears that coupon use may be perceived as signs of "cheapness" or "low class", other consumers may be perturbed when forced to wait while the consumer's coupons are being processed. This may further heighten a sensitive consumer's feeling of embarrassment and result in a negative attitude toward using coupons (Huff & Alden 1998). The relationship between fear of losing face and other tools has remained ill understood. Therefore, this research posits the moderation effect of fear of losing face in the relationship between coupon, price discount, free sample, bonus pack, in-store display and behavioural responses. Thus it is hypothesized as follows: H4: trial will be weaker if customers are afraid of losing face. Methodology In this study, five consumer promotion tools- coupons, discount, samples, bonus packs, and in-store display were investigated for their impact on consumer purchase behaviour. Items from Garretson and Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN The impact of the sales promotion strategies on product

Burton's (2003) study of consumer proneness towards sales promotion were used in the measurement of proneness to coupon, price discount, free sample, bonus pack, and in-store display. Trial and repurchase behaviour of consumers were measured with items adapted from Gilbert and Jackaria (2002). Figure 1 shows the research model. Questionnaire was used for the study. The population of the study consists of consumers in Kota Kinabalu, Malaysia. The sample points were supermarkets in Kota Kinabalu area. The survey instrument was self-administered randomly to customers in these supermarkets. Some respondents who could not answer on the spot were given a copy of the questionnaire (to be answered at home) with a postage paid return envelope. A five point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree) was used for the constructs dimensions. A total of 420 questionnaires were distributed around Kota Kinabalu and only 312 were returned, which represents a response rate of 74%.

The Hierarchical Multiple Regression Model (Abrams, 1999) was employed to predict the relationships in the construct. The predictor variables (i.e. the independent, the intervening, and the moderating variables) were entered into the model in different stages. The hierarchical regression is employed so that the increase in R2 corresponding to the inclusion of each category of predictor variables and the unique variance in the dependent dimensions explained by the predictor categories could be examined. Mediator effect of product trial was measured based on Baron and Kenney (1986). According to Baron and Kenney (1986, p. 1176), a variable functions as a mediator when it meets the following conditions: (a) variations in levels of the independent variable significantly account for variations in the presumed mediator, (b) variations in the mediator significantly account for variations in the Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

dependent variable, and (c) when a and b are controlled, a previously decreased. The effects of the moderating variables were measured by performing a three tier linear regression (Ndubisi & Richardson 2002). The independent dimensions were introduced in the first tier, the moderator in the second, and the interaction terms in the third tier. The regression has the following equation: significant relation between the independent and dependent variables is no longer significant or it is significantly

=b0 + biX, Y = b0 + biKt + h2X2 + E Y^b + b,X, + b2X2 + b3X,X2 + E (1) (2) (3) Where Y represents Product repurchase bo b, Xt b2 Xi represents the constant represents the strength of predictor variables (sales promotion strategies) represents the predictor variables represents the strength of the moderator (Fear of losing face) represents the moderators

b3 term

represents the strength of the interaction term XjX2 represents the interaction

is the error term The interaction term is the product of the predictor variables

and the moderator for example, coupon* fear of losing face, bonus pack*fear of losing face, and so on.

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Figure : 1 Coupon Price discounts Free sample Bonus packs In display Store

Research Fear of Losing Face

Framework

Product Trial

Product Repurcha se

The regression assumptions with respect to autocorrelation (independent of residual), normality (residual is normally distributed), homoscedasticity of error terms, multicollinearlity and linearity of independent variables were verified before making any interpretation of the statistical results. Results and Discussion Out of the 312 usable questionnaires returned by the respondents, 59.6% are female respondents, whereas the male respondents consist of 40.4%. Various income levels (in Malaysia Ringgit) are represented, for example below 24,000 consist of 60.9%, 24,000-47,999.99 (29%), 48,00071,999.99 (9%), and so on. Chinese consumers make up 51%, Kadazan-Dosuns (22%), Malays (16%), Indians and others (11 %). The ages of the respondents are as follows: below 20 (13%), 2039 (62.8%), 40-59 (22%), and 60 and above (2.2%). The rate of married respondents is 46%, while singles represent the balance of 54%. With respect to education background, 50.6% have secondary school education and less, 26% holds high school and diploma qualifications, and the rest (23.4%) are degree and post-graduate degree holders. Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

Cronbach's alpha test was used to ensure the reliability of the variables. For sales promotional tools, the results indicate acceptable values: coupon (a=0.81), price discount {a0.86), free sample (a= 0.87), bonus pack (=0.88), and in-store display (a= 0.87). The Cronbach's alpha value for product trial and repurchase are 0.81 and 0.89 respectively. Mean score for all dimensions are as follows: coupon (2.99), price discount (3.67), free sample (3.08), bonus pack (3.28), in-store display (2.84), product trial (3.22), repurchase (3.03), fear of losing face (1.89), and familiarity (3.20). From the results, it is clear that the mean of fear of losing face or embarrassment is low, indicating that the respondents are not too concerned about losing face to people they know or being embarrassed when people they know find out that they are capitalising on promotion.

Table Variables Coupon Price Discount Free Sample Bonus Pack In-store Product Trial Repurchase Fear of Face Relationships

J: of 5 5 5 5 4 5 10

Descriptive Mean 2.99 3.67 3.08 3.28 2.84 3.22 3.03 1.89

and

Reliability Cronbach's Alpha 0.81 0.86 0.87 0.88 0.87 0.81 0.89 0.92

Analysis

No. Results

S/D 0.77 0.75 0.81 0.77 0.84 0.73 0.66 0.64

Losing 10

Table 2 shows the results of the regression analysis used to determine the relationship between the promotional mix and product trial.

Table 2: Promotional Tools and Product Trial Independent Coupon variables Price discount Free sample r i iius pack Beta .023 coefficients .143 .218 .114 t-value 0.401 2.334 3.483 1.900 p-value .689 .020 .001 .058 SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

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In-store display R = 2 )4 1
2 (

.234 .000

4.322

.000

2S218Sig Y

Volume 17 Number 12005 The above results show that coupon, price discount, free sample, bonus pack, and instore display contribute significantly (F = 25.22; p = .000) and predict approximately 30% of the variations in product trial. The 30% explanation is considered good for a behavioural science research. Further examination of the results shows that price discount (t = 2.334; p = .020), free sample (t=3.483; p = .001), and in-store display (t=4.322; p = .000) are significantly associated with product trial at 5% significance level. Bonus pack is moderately associated with product trial (t = 1.900; p = .058). Hence there is enough evidence to accept hypotheses lb, c, d and e. The results indicate that in-store display is the strongest predictor of product trial followed by free sample, price discount and bonus pack. There is no significant relationship between coupon and product trial (t = 0.401, p=0.69) at 5% significance level, which leads to rejection of hypothesis la. Therefore, it is conclusive that coupon is not a strong determinant of product trial among the respondents. This may be because coupon use is not a common practice in Malaysia. It is the most rarely used promotional tool in Malaysia and many consumers are not familiar with it. The results of this study provide some useful information about the impact of the five promotional tools on consumer buying behaviour (product trial and repurchase). With respect to consumer proneness to sales promotions, the study found that in-store display promotion played the most significant role in shaping consumer product trial reaction. This finding corroborates the view of Percy et al. (2001). Consistent with the definition by Pramataris et al. (2001), free sample promotion was also found to significantly impact product trial. At 5% significance level, price discount plays a significant role in influencing consumer product trial behaviour. This finding is consistent with the views of Blackwell et al. (2001). Another sales promotional tool that has important effect is bonus pack. Bonus pack is often used to increase consumer trial of a brand or product, thus, the more of the product included at no extra cost, the greater the likelihood of consumers buying the product for trial. Although, the effect of bonus pack to product trial is lower than other promotional tools such as in-store display, free sample, and price discount, bonus pack remains a useful marketing tool. An explanation for the moderate robust influence of bonus pack relative to other tools was supplied by Ong et al. (1997). They stated that consumers might trust the Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

price and quantity discount more than the bonus pack offer, and consumers find it difficult sometimes to believe the bonus pack offered by the manufacturers. Contrary to some earlier findings (e.g. Banks 2003; Blackwell et al. 2001), coupon in this study does not have significant effect on product trial behaviour. This result may have been caused by the respondents' low level of familiarity with the use of coupons. In fact in Malaysia, the use of coupons as a promotional strategy is not as common or popular as it is in the West. Marketers in Malaysia very seldom use coupons, resulting in the tool's unpopularity among Malaysian consumers, which is reflected in thesignificant increase in R2 and decrease in beta coefficients explain the mediation effect of product trial in the association of price discount, free sample, bonus pack, and in-store display with repeat purchase. Hence, the four independent dimensions have an indirect relationship with product repurchase through product trial, which justifies the acceptance of hypotheses 3b, 3c, 3d & 3e. Therefore, it is conclusive that: (1) price discount brings about repurchase by bringing about trial; (2) free sample leads to product trial which then leads to repeat purchase; (3) bonus pack culminates to repeat purchase by producing trial; and (4) in-store display begets product trial, which precedes repurchase. In sum, Malaysian customers anchor repeat purchase to product trial which is in turn anchored to the four promotional tools - price discount, free sample, bonus pack, and in-store display. However, trial does not mediate in the relationship between coupons and repurchase. Although, there is a decrease in beta coefficient for coupons from stage 1 to stage 2, but there is a violation of condition (a) of the test for mediation effect (i.e. variations in levels of the independent variable significantly account for variations in the presumed mediator). Since there is no significant direct relationship between coupon and product trial as shown in Table 2, the first condition for mediation effect is not met, thus it is concluded that there is no mediation effect. Hence, hypothesis 3a is rejected. It is therefore concluded that there is no indirect relationship (via product trial) between coupons and repurchase behaviour of Malaysian consumers. The Moderation Effect of Fear of Losing Face Hypothesis 4a holds for only in-store display but not for the rest of the promotional strategies. As observed from Table 4, fear of losing face does not moderate the relationship between coupon, price discount, sample, bonus pack, and trial, but it does Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

moderate the in-store display-trial relationship. This could be because of the strong phobia for the lepak or idler stigma among Malaysians. In Malaysia, if one is overly taken-in by such displays or spends much time observing it; he/she could be dubbed an idler who does not have much to do except to pass time with product shows. This is a plausible explanation why consumers may lose face if they are found spending time observing display by people they know. According to Singelis and Sharkey (1995), consumers from collectiv-ist societies are particularly sensitive to how others view them, but it seems this is the case only with nonprice saving promotional tools. Apart from in-store display, which is not associated with price saving, Malaysian consumers are not embarrassed to enjoy promotion. This result also contradicts some of the generalisation made about collectivist societies being embarrassed or being sensitive to how people view them. If consumers in affluent collectivist societies like Japan are embarrassed to redeem coupons (Kashani & Quelch 1990) and other promotional tools, it is not necessarily so in less affluent collectivist culture like Malaysia. Thus, the differential in affluence of both societies might better explain why losing face continues to deter the Japanese from using coupons and other tools, but doesn in Malaysia. The respondents, like many Malaysians, do not consider it embarrassing to enjoy cost saving sales promotions. This is demonstrated in the reported mean for this dimension (1.89), which is not only the lowest of all the dimensions, but also on the low side of the scale with a mid-point of 2.5. In Malaysia, for example, consumers see the use of promotional tools as an opportunity for a good buy, rather than a sign of poverty, which is one of the reasons for the successful institution of the nation-wide sales carnival, organised a few times every year by the Malaysian government. During these sales seasons, Malaysians (irrespective of their social or economic strata) exhibit a rush to participating stores, as they see nothing wrong or embarrassing in people they know finding out that they are making good buys through discounts and other cost-saving promotional tools. Table 4: The Moderation Effects Fear of Losing Face (Promotion-Trial) Variables B Coupon Price Discount .012 .150 Step 1 Sig. .833 B .009 Step 2 Sig. ,874 .007 B ,023 .198 Step .3 Sig. .890 .251

.01.5 .171

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Sample Bonus Pack: In-store Display Fear of losing face Coupon*Fear of losing face Price Discount* Fear of losing face Sample* Fear of losing face Bonus Pack* Fear of losing face ln-store Display* Fear of losing face R2 Changes Significant F Change Limitations and Future Research

.201 .111 .239

.002 .066 .000

.192 .113 .231 .071

.003

.057

.761 .940 .001 .731 .935 .795 409 .420 .044

.063 -.013 .000 .160 .512 .097 -.022 -.078 .267 .232 -.479

.281 .000

.005 .160

.014 .332

Although this study has provided useful information for understanding sales promotional tools and their impact on product trial, there are few limitations to this research. First, product price was not considered in this study, which takes a generic approach. For example, a customer may be prone to a coupon promotion but he/she may not be interested across all the different price tags. Various promotional drivers of product trial may differ with respect to product price, for example promotional drivers of highly priced items, might differ from low price items. Therefore, it is recommended that future research examine the moderation effect of product price in order to see if the observed effects could be generalized across product values. Further, there is still an urgent need to investigate the impact of other promotional tools on product trial because research in this area is still inconclusive. Therefore, beside the five specific types of deals (i.e., coupon, price discount, free sample, bonus pack, and in-store display) that were examined in this study, future research may choose to examine other types of sales promotions (e.g., contests, refund) on product trial. In addition, studies that utilize data compiled by retailers that track buying and sales promotion participation habits across various tools would add much value since it is based on hard data rather than perceptions. Lastly, since repeat purchase (more than product trial) is the real measure and sustainable guarantee for business success, and since the debate on the direct influence of promotional tools on repeat purchase is still inconclusive, future research should explore this area further. By investigating the promotional strategies-repeat purchase relationship, important information could Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

be unveiled to elucidate the current debate in this area and also to suggest possible strategies for consummating strong customer repurchase behaviours based on sales promotion. Conclusions and Implications of the Study This research has important implications on theory. The framework provides new insights into the understanding of sales promotional strategies and their impacts on Malaysian customers' behavioural responses. In addition, it helps to explain the role of fear of losing face on the sales promotion-customer response relationship. Malaysian consumers respond more to free sample, price discount, in-store display, and bonus pack than coupon. A plausible explanation may be because coupons provide less shopping convenience benefits, require more skill and effort than buying a product on sale. For example keeping the coupon and redeeming it before expiring date, searching for a product that has coupon, matching coupons with brands, etc can be cumbersome and time consuming. In the other hand, price discount, free sample, bonus pack, and in-store display can provide shopping convenience benefit. This research therefore helps to better understand how Malaysian consumers view sales promotion and respond to various promotional tools offered by manufacturers or sellers. This is an important contribution to the body of knowledge in this field, being one of the pioneer studies in this area in Malaysia. The results also have important implications for practitioners interested in the management of sales promotional tools. One of the major implications of this research is that manufacturers and retailers can increase their sales by offering the right promotional tools to attract customers to buy the product for their first trial. Therefore marketing managers need to carefully plan their promotional budgets and the allocation of the budget over different forms of promotions. Promotions that emphasize in-store display, free sample, price discount, and bonus pack are likely to be more effective than coupon. Second, the findings indicate that in-store display proneness has the strongest effect on product trial compared to other sales promotional tools. Attractive in-store display practices are necessary to gain the greatest sales from product trial and repurchase. In order to folly enjoy the benefits of in-store display, they may need to address the issue of losing face by emphasising in their awareness campaigns that customers who are taken-in by in-store displays are informed and highly aesthetic customers, not idlers. By drumming this kind of message into the ears of the public, a great change of mindset could result that now views interest in in-store display as something 'cool'. Pusat Pengembangan Bahan Ajar - UMB SYANTHIA A. ASRI SEMINAR MANAJEMEN PEMASARAN

Third, (as shown in the results) bonus pack, free sample, and price discount significantly effect product trial, albeit the determinant power of bonus pack is the lowest among other promotional tools. Thus, one of the ways to improve the determinant power of bonus pack is to keep a regular pack along side with a bonus pack on the shelves, in order to enable consumers to make comparison. Such opportunity for a comparative observation will help to assure them that they are getting real value and not a trick. Consumers' confidence in bonus pack will be enhanced by so doing. With regard to free sample and price discount, sellers should continue to apply them because of their robust influences on product trial. Fourth, the findings show that coupon have no significant effect on product trial. This is largely due to consumers' unfamiliarity with the tool, and probably due to the smaller value of coupon, and short period of redeeming the coupon. Thus, it is suggested that manufacturers and retailers should use more of coupons in their promotional efforts, with longer redemption period, and create greater awareness of the benefits of coupons and how they could be redeemed (since coupon-trial relationship depends on customer familiarity with the tool). This will help ignorant customers to be better informed about coupons and their uses. Lastly, fear of losing face negatively moderates the relationship between in-store display and product trial, but not the relationship between the other four tools and product trial. This negative impact on display-trial relationship by fear of losing face is attributed to the idler stigma associated with spending time observing promotional displays. Moreover fear of losing face becomes an issue only when the promotion does not lead to cost-saving as with in-store display, but for price-saving promotional tools

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