Internship Report Proposal on

Impact of Sales Promotion on Consumer Demand; A

Study on Rin Detergent Powder Users of Dhaka & Khulna
City

Submitted To
S.M.Arifuzzaman
Associate Professor
Business Administration Discipline,
Khulna University

Submitted By
Md. Rezwanur Rahman
Student ID: 110332
21st Batch, Business Administration Discipline,
Khulna University

Date of Submission: 21st April, 2016

Page | 1

21st April, 2016

S.M.Arifuzzaman
Associate Professor
Business Administration Discipline
Khulna University

Subject: Submission of the Internship Proposal.

Dear Sir,

With due respect I state that as a partial requirement for the completion of my
degree in BBA program; I am doing my internship in Unilever Bangladesh
Limited. I am proposing to conduct an internship report on The Impact of Sales
Promotion on Consumer demand; A Study Based on Detergent Powder Users of
Dhaka & Khulna City. Dhaka city is the place of my internship and I am
performing under Brand department my work field is brand activation &
promotion.
Along with this letter the total proposal which is prepared as per your valuable
remarks has been attached. If there is any further information or clarification
required, I will be obliged to submit.
I therefore pray and hope that you will be kind enough to grant my proposal and
obliged thereby.

Yours Sincerely,

Page | 2

Md. Rezwanur Rahman

Student ID- 110332
21st Batch, Business Administration Discipline

Page | 3

1. Introduction
In this present era corporations have a clear understanding of the
significance of their customer satisfaction. Through serving them companies earn
growth and accelerate their progress. For finding a way to satisfy customer a
company must first have idea about the perception of their customers. Companies
can deliver marketing messages through a choice of methods, including
advertising, publicity, personal selling, public relations, direct marketing, sales
promotions, and sponsorships and branding.. Sales promotions refer to any extra
incentive manufacturers, retailers, and even not-for-profit organizations use that
could provide to transform a brand's perceived price or value for the time being
(Shimp, 2010, p. 446)
Koekemoer (2005, p. 274) differentiates among three different types of
sales promotions, specifically: consumer-oriented sales promotions, retail
promotions and trade promotions. The present study will focus on consumeroriented sales promotions. Consumer-oriented sales promotions refer to incentives
that are given directly to a firms consumers or potential consumers; they are used
to accelerate the decision-processes of consumers (Moriarty et al., 2012, p. 546).
This explanation embodies the key attributes of sales promotion. Sales promotion
procedures, such as free samples, redemptions, competitions, premiums, coupons
and price incentives provide extra incentives to achieve immediate sales. These are
often mentioned as value-added techniques, because they supply instantaneous and
tangible added value to brands (Du Plessis, Bothma, Jordaan, & Van Heerden,
2010, p. 228). The reason of sales promotion is to control the purchasing behavior
of consumers by accelerating buying or consumption, thereby providing them with
an incentive to respond quickly to the promotional offer. These incentives are
generally obtainable for a limited time period; and thus they create a sensation of
immediacy, where consumers have to take a choice quickly.
A number of papers on the influence of sales promotion on consumers
buying behavior have been published in the past decades, such as the impact of instore displays on product testing and the repurchase behavior of consumers in
Malaysia (Ndubisi &Moi, 2005); the influence of free samples on consumer trial
and purchasing behavior in the United States (Heilman, Lakishyk & Radas, 2011)
etc. However, very little research on the influence of sales-promotion techniques
Page | 4

on consumer demand has been conducted in the FMCG markets of Bangladesh. In

this paper, a particular section of FMCG market which is laundry detergent will be
focused for measuring the impact of sales promotion on consumers.
1.1 Title of the Study
The title of the study is Impact of Sales Promotion on Consumer Demand;
A Study on Rin Detergent Powder Users of Dhaka & Khulna City. Rin is one of
the fastest growing detergent powder brands of Unilever Bangladesh. After getting
rebranded from Wheel Power white in 2011, Rin has continuously taken various
promotional offers to enhance the brand image also capture the newer market
segments. The very recent ongoing promotional offer of Rin is providing cell
phone balance recharge with every purchase of Rin 500 gm detergent powder.
Through this study the impact of this promotional offer along with the offers of its
competitors will be discussed in order to find the impact of them on consumer
demand.

1.2 Background of the study:

Bangladesh has a detergent market of about 8.8 billion taka of which
Unilever occupies a share of 30% making it the market leader. The major
competitor brands in the detergent market for Unilever are Keya, Chaka, Tibet &
Kollol Group. To fight this extreme competition the above mentioned companies
frequently run consumer promotion in expectation to sell more than the respective
competitors. Although this policy worked well at first but with the passage of time
Consumer promotion over all is a very expensive affair. Unilever has the largest
brands of detergent and so the costs of providing a consumer promotion offer is
also large by the same proportion.
The consumer promotions and other dependant elements have to be studied,
to make sure that if a consumer promotion activity is implemented it is a highly
effective one. This way, precious monetary resources have the minimum chances
Page | 5

of being wasted. To understand the competition in the detergent market better price
perceptions and product quality perceptions about the brands of detergent on
promotion are also considered being worth studying. To look at market share
issues, the brand loyalty element should also be explored.
1.3 Origin of the Study:
The research paper has been prepared as a prerequisite of the graduation
requirement under the supervision of Mr. S.M.Arifuzzaman, Associate Professor.
The paper has been authorized on March 24th, 2016 and the date of submission is
July 31st, 2016.
1.4 Justification of the Study:
This study would be useful to the companies selling detergent powders, as
it makes them understand the effects of sales promotion in forecasting the sales of
their product. It would also help them to get a clear view about customers loyalty
range & brand switching frequency, which will ultimately help to make long term
selling decisions, as they will know how much to allocate for promotion of the
products and help them in their plans. It would the learning institutions so as to lay
the foundation for further research on the concept of promotional factors.

1.5 Scope of the Study:

The scope of this study is limited to the impact of sales promotion on
consumers especially for the detergents brands of Unilever. Another area that can
be added to scope of study is the future market expansion & capturing bigger
customer share. Studies can be done to find out the effect of Sales Promotions on
Consumer Based Brand Equity Scale incorporating the concept of brand
personality proposed by Aaker (1995) and shown in the scale developed by Papu,
Questar and Cooksey (2005).
1.6 History of Unilever Bangladesh
Unilever started its journey in Bangladesh nearly 40 years back, with local
manufacturing facilities, and reporting to regional business groups for innovation
Page | 6

and business results. The reporting region for Unilever Bangladesh (UBL) is Asia
AMET (Middle East and Turkey), and CEC (Central and Eastern Europe), with the
regional headquarter being in Singapore. Operating in Bangladesh since 1948,
UBL had set up its production plant in 1964, with the manufacturing of Lux and
Lifebuoy soap. Back in December of 2004 Lever Brothers Bangladesh Ltd
changed its corporate identity to Unilever Bangladesh Limited in line with the
parent companys global identity. Previously, both the head offices and the factory
were located in Chittagong, but as of 2002 the corporate offices were shifted to
Dhaka, whereas production remained at Kalurghat Heavy Industrial Area in
Chittagong. Over the years it has consolidated its strength in the FMCG sector
until today, where it is now the leading consumer products manufacturer in the
country. While many of its brands are big international names, the product mix are
developed locally, based on a deep understanding of local culture and markets, a
strength shared across Unilever. Unilever's purpose is to meet the everyday needs
of people everywhere, to anticipate the aspirations of the consumers and customers
and to respond creatively and competitively with branded products and services
which raise the quality of life. Unilever focuses on the highest standards of
corporate behavior towards their employees, consumers and the societies and
world to ensure success. This is Unilever's road to sustainable, profitable, growth
for their business and long-term value creation for their shareholders and
employees. The brand Rin detergent powder was launched in Bangladesh back in
2011 after a successful migration from Wheel detergent powder. Since then
Unilever has been taking many promotional activities to hold a larger market share.
2. Objective of the Study :
2.1 General Objective
The objective of this study is to identify the relation between sales
promotion and brand loyalty of detergent consumers in Dhaka & Khulna city.
Detergent is a low involvement product. Normally buyers of detergent practices
habitual buying behavior (Kotler, P, 2003). Consumers of detergent do not search
extensive information before purchase. Detergent consumers are passive recipients
of information in television or in print advertisement. So advertisement and
promotion offers creates brand familiarity rather brand conviction. Switching of
Page | 7

detergent brand is very easy. In this study authors test the strength of sales
promotion on brand preference.
2.2 Specific Objective:
The specific objectives are:
a. To examine a way for boosting up the growth of laundry detergent market.
b. To find out what customers prefer.
c. To scrutinize what new features that can be brought to grab more market
share.
d. To find out a possible way to attract loyal consumers.
3. Significance of the study:
Ive chosen this topic for my internship report because internal
communication in Unilever Bangladesh Ltd. plays a vital role in economic
development of the country. The importance of the study area. It provides information and encourages sharing by driving and
supporting the organizations short-term and long-term goals and
objectives.
b. It ensures that these initiatives are implemented and followed at a
local level.
c. It ensures that knowledge-sharing and communication processes
are part of the daily workflow across all functions of the
business.
d. It helps drive ownership and shared engagement.
4. Literature Review:
Sales promotion has been considered as most stimulating technique of
promotion for influencing the purchase decision. It is a valuable tool for
manufacturers as well as retailer. Sales promotions have become a vital tool for
marketers and its importance has been increasing significantly over the years
(Manalel et al, 2007).Prices are used by retail establishments as an advertising
appeal to attract consumers. This is shown by the increasing presence of product
prices in the media and advertising campaigns. This is aimed at providing the
consumer with a comparative element to judge the different alternatives he or she
has at his or her disposal when making a purchase (Alvarez , et al.2005).). Given
Page | 8

the growing importance of sales promotion, there has been considerable interest in
the effect of sales promotion on different dimensions such as consumers' price
perceptions, brand choice, brand switching behavior, evaluation of brand equity,
effect on brand perception and so on (Manalel et. al, 2007).
Brassington and Pettitt provide a revised definition for sales promotions a
range of marketing techniques designed within a strategic marketing framework, to
add extra value to a product or service over and above the normal offering in
order to achieve specific sales and marketing objectives, this extra value may be a
short term tactical nature or it may be part of a longer-term franchise building
program.
Manufactures and retailers wish to understand the way marketing variables
like price, loyalty or promotions may affect their sales and therefore the market
share of the products they commercialize

(Alvarez , et al. 2005). Research

evidence suggests that sales promotions positively affect shot-term sales (Priya,
2004). Studies have shown that price promotions enhance brand substitution within
a product category (Dodson et al, 1978). However, there have also been studies
that suggest that sales promotion affects brand perceptions (Manalel, et. Al 2007).
Researchers have found out that promotions, especially price promotions, have
negative effect on brand equity (Mela et al, 1997). In another study, Schultz (2004)
argues that over dependence on promotions can erode consumers' price-value
equation. The results of a study by Jedidi et. al (1999) indicates that in the long
term, advertising has a positive effect on brand equity where as price promotions
have a negative effect.
Similarly, Yoo et. al (2000), based on structural equation model, suggests
that frequent price promotions, such as price deals are related to low brand equity,
where as high advertising spending, high price, good store image and high
distribution intensity are related to high brand equity.
It is necessary for the establishment to determine clearly the objective to be
reached through sales promotion. It is also relevant to distinguish between shortterm and long-term objectives. The former are generally aimed at responding to the
competition's promotion incentives or getting rid of stock. However, long-term
objectives usually focus on increasing the market share, the benefits and on
developing an adequate image to win renown (Alvarez , et al.2005).
Page | 9

4.1 The role of Consumer in Marketing

Marketing management is set to influence the level; timing and character of
the demand to allow the organisation achieve its goals. Marketing being the key to
success of any business and conveys the most effective information about goods
and services to the public (Alawiye, 2014), then the role of the consumer in
marketing must be a critical point to examine since they make the buying decision
of the products hence demand is the controlling factor which can still vary from
what an organisation wants to supply that makes the supply the function of
demand. Production is incomplete until the product gets to the consumers, the final
users. It is obvious that for the consumers to decide to buy a brand product,
marketers must have succeeded in persuading the consumers environment to
create and maintain demand for their products. However, the buying process
involves the consumer to be motivated to develop a need for certain products and
now go in for the product with his or her knowledge of the product as a result of
personal exposure room peer group.
Economist opines that the buyer is influenced by resources available to
him, psychologist believes that internal environment such as perception,
personality, and learning of buyer affects the buying behaviour, sociologists says
that external environment as social class, family, reference groups, culture, religion
of buyers influence the purchasing pattern of the consumer. However, in an
economy with freedom of choice, the principle of consumer sovereignty states that
an organisations continued existence and performance is in due course determined
by the consumer, hence consumer behaviour will determine the fate of the business
which is why the role of consumers is very vital in marketing (Kotler, 2008)
. Thus the manager must design and develop a marketing strategy for the
products and know the buyers and their locations as well as reasons behind both
the need and buying behaviour of the consumers even when many buying
decisions involved only one decision maker and other decisions may involve
several participants, as the initiators, influencer, decider and user (Adeleye, 2006).
4.2 Consumer Purchasing Behaviour
Page | 10

The consumer is faced with various stimuli to respond to in the market; the
stimuli include the marketing mix (4Ps) alongside other forces within the
environment. However, the stimuli pass through decision making process of the
consumer which led to the aspect of observable buyer response in form of brand
choice, dealer choice, product choice, time of purchase and amount to be expended
on the products amongst others. It is expedient for the marketers to know what
happens between the stimuli and consumers response behaviour (Odugbesan &
Gbolahan, 1996). Concerning the marketing mix elements, the behaviour of market
has to be well comprehended in order to structure the market mix element in an
optimal manner for better positioning within selected marketing segments. The
consumers characteristics and their influences serve as a major ingredient in the
buyers perception about stimuli and their purchase decision making process,
hence Hawkins et.al, (1989), stated that the marketing manager needs to view the
consumer as a problem solver due to the fact that consumer is a decision making
unit that takes in information, processes it in light of existing situation, take actions
to accomplish satisfaction that enhances lifestyle. It is obvious that consumer
behaviour is the soul of marketing concept. One should not lose sight of certain
factors which influence consumer behaviour such as cultural, social, personal,
psychological and situational factors are all comprehensive approach to buying
behaviour acknowledgement that makes man a complex creature.
Interestingly, some researchers have also shown that sales promotion is
likely to repeat purchases if consumers are satisfied with the brand that is being
promoted; it is more likely that they will also buy it later after the promotion is
over (Peattie & Peattie, 2009)). However, it was concluded that sales promotions
should be handled with care the outcomes vary from products or services to
consumer groups is the situational factors play a major role in the outcome analysis
bearing in mind that most promotions research are based on the context of USA
markets hence the implications differ if applied to Nigerian markets.
The problem facing sales promotions on consumer purchases behaviour in
Nigeria are that, whether consumers purchase behaviour towards sales
promotional efforts yield positive or negative for the product concerned since
manufacturing organisations operate under inflexible competitions and increasing
harsh challenges that make it almost impossible for the organisation to meet the
Page | 11

profitability target and reasonable return on investment of shareholder funds. Most

organisations now concentrate their efforts on promotion strategies and techniques
to reach the dwindling profit problem. Promotion being a short-term incentive is to
encourage purchases (Kotler, 2008) and is combined with advertising. It is not all
sales promotion techniques that are directed to consumers, some are directed to the
middle men and some to the organisations own sales force (Govon, 2006). One
gets involved in making decisions of the product to buy which is now a problem
solving process that is dependent on the consumers level of involvement which is
the degree of interest on a product or service. The high involvement products are
those that are not expensive with less society risk attached to them (Witton, 2006)
Choosing between 2 brands put one in a position to make decisions but if there is
no alternative, one is literally forced to buy because there is no choice to choose
from and this does not constitute a decision, such a no-choice decision is
commonly referred to s a Hobsons Choice (Achumba, 2000). Due to its present
economic recession in the world at large, this brought about increased economic
pressure on the consumer and a corresponding increase pressure on the consumers
disposal income which lead to consumers becoming more conscious and rational in
their purchasing decisions (Buel, 2004)). Promotion becomes increasingly
important in marketing as it serves as a way of increasing the demand for products,
as a substitute for price competition and as a way of differentiating similar
products (Osuagwu & Eniola, 1997).

4.3 Context of Sales Promotion

Nowadays, it is a common phenomenon for organisations to bombard
consumers with all forms of sales promotions on a daily basis by means of print or
electronic media. This is applicable to manufacturing sector, banking sectors and
even the mobile telecommunications industry too. This trend made people to
develop some kind of interest in sales promotion adverts which will run on the
organisations goods or services they are interested in order to take advantage of
the price-off, trade bonus, cash discounts, compass, gifts and even free trials.
Amazingly, during the sales promotion, customers tend to ask for free gifts even
before receiving the goods paid for. The organisation understands how consumers
Page | 12

are important to developing effective strategies, not only for sales promotion but
for other elements of the marketing communication. Both Peattie and Peattie
(2009) and Davis and Adeyinka (1992) concluded that price promotions do not
have effect on consumers quality perceptions and promotions do not change the
long-term purchases patterns of an established brand.
The problems of this study are if consumers purchase behaviour towards
sales promotional efforts of this organisations products are positive or negative
and what potential technique of achieving successful sales promotion activities to
imbibe. The aim of this paper is to possibly proffer solution to achieving a
successful sales promotional strategy while the study objectively seeks to know
what extent sales promotion in this organisation have achieved its objectives of
providing consumers with incentives aimed at exciting trial or continued
consumption of the products, possibly win new buyers and encourage the existing
customers.
Sales promotion encompasses all promotional activities other than
advertising, personal selling and public relations. Laroche et al., (2002), consider
sales promotion as an action-focused marketing event whose purpose is to have
an impact on the behavior of the firms customers. (Laroche, 2002) Several
important aspects of sales promotions should be highlighted to complete this
definition. First, sales promotions involve some type of inducement that provides
an extra incentive to buy and this represents the key element in a promotional
program. Kotler et al., (2008) further added that those incentives are additional to
the basic benefits provided by the brand and temporarily changes its perceived
price or value. It is also primarily seen as an acceleration tool designed to speed up
the selling process and maximize sales volume (Alawiye, 2014). Schneider and
Currim (1991) classify sales promotions as active or passive promotions, such as
coupons require active search on the part of consumers, whereas in-store
promotions such as two-for-one involve a limited search, restricted to the store
environment. Sales promotions have also been dichotomized into price- and non
price-oriented categories (Schneider & Currim, 1991). The end benefit of price
promotions for the consumer is a lower purchase price (e.g., coupons), whereas
other promotions focus on other benefits (e.g., value for money, like two-forone promotions).
Page | 13

It has been established in literature that only consumers with repeat

purchases are profitable (Nagar, 2009). It is not every repeat purchase that is
connected to consumers commitment of a brand. However, consumers
commitment is important for a repeat purchase. Therefore, business operators need
to develop marketing programmes that will not only reinforce customers
commitment but also encourage repeat purchases. A part of the functions of sales
promotion is not only to reinforce commitment of consumers but to encourage
repeat purchases. Effects of sales promotion on consumer behavior have been
widely studied in literature (Nagar, 2009). Sales promotion has effects on various
aspects of consumers purchase decisions such as brand choice, purchase time,
quantity and brand switching (Nijs, et al., 2001); consumers sensitivity to price
(ridges, et al., 2006).
However, whether the effect of consumer loyalty and purchasing behavior
could be moderated by sales promotions has not yet been examined extensively.
Regardless of a widespread interest in the relationship between sales promotion
and purchasing behavior, most studies of this kind focus on the effect of sales
promotions on choice at the time they are offered (DelVecchio, et al., 2006). Only
a few have investigated the lag effect of sales promotions on brand preference and
the resultant buying behavior once the promotion campaign is rescinded.
Sales promotions could be in form of monetary and non-monetary ones.
These types provide both utilitarian and hedonic benefits to the consumers.
Utilitarian benefits refer to such benefits such as quality, convenience in shopping,
saving in time efforts and cost (Luk & Yip, 2008). Hedonic benefits on the other
hand refer to value expression, exploration, entertainment, intrinsic stimulation and
self esteem (Chandon, et al., 2000). According to Luk and Yip (2008) monetary
promotions are incentive-based and transactional in nature and provide immediate
rewards and utilitarian benefits to the customers. However, non-monetary
promotions provide hedonic benefits but weaker utilitarian benefits (Kwok &
Unncles, 2005).
Monetary promotion have been reported to be preferred over non-monetary
promotion across all consumer goods in terms of their ability to elicit purchase
intentions (Luk and Yip, 2008; Kwok and Uncles, 2005). Several other studies had
Page | 14

reported different impact of sales promotion on consumer behavior. For example,

Blatterger and Wisniewski (1989) reported that consumer gain more from price cut
when buying an established up-market brand than a mass market brand. Pauwels,
Hanssens and Siddarth (2002) argued that price promotion elicits temporary
changes in brand and product choices and purchased quantity for established brand
in mature market. These changes are because up-market brands are associated with
prestigious brand with high level of reliability, low level of risks, greater concerns
for customers needs and stronger hedonic benefits (Luk and Yip, 2008). It is not
settled in literature whether sales promotion can enhance or undermine brand
preference beyond the time they are offered (Luk and Yip, 2008; DelVecchio,
Henard, Freling, 2006).
Monetary sales promotions could lead to negative impact on brand
preference and trust. This is because monetary promotion can divert attention to
financial incentives which may encourage brand switching behaviour, increase
price sensitivity and make quality criterion less important (Aaker, 1996) Gedenk
and Neslin (1999) argued further that sales promotion can lead to a significant
decrease in brand loyalty. From the above discussions sales promotion seem to
have double-edge impact on consumer behavior depending on the consumer level
of commitment. A committed consumer is less receptive of sales promotional
efforts. However, a less committed consumer is highly influenced by sales
promotional efforts (Mariole & Elina, 2005)). These contradictory findings suggest
a need for more research on the effect of sales promotion on consumer loyalty.

4.2 Consumer Promotion

Sales promotions as we know are a very important element of marketing
promotion. Consumer promotion (e.g. coupons, samples, contests, sweepstakes,
and price packs) is a component of sales promotion that is targeted towards the
ultimate buyers of consumer products (Kotler and Armstrong, 2002). Sales
promotion is basically a marketing technique employed to maximize increase in
sales within a period of time. Kotler and Armstrong (1997) assert that sales
promotions consist of a short-term incentive to encourage purchase or sales of a
product or service; they opined that sale promotions include a wide variety of
Page | 15

promotion implements designed to stimulate earlier or stronger market response.

Onu (2000) has it that sales promotion are those marketing activities other than
personal selling, advertising and publicity that arouse consumers purchasing and
dealer efficacy such as display shows, and exhibition, demonstrations and various
non-current selling efforts not in the ordinary routine. There can be different types
of consumer sales promotion some are incentive based while others are
communicative in nature (Kotler et al.,1999; Tellis, 1998). The incentive based
promotions can be price - oriented promotion or non price-oriented promotion.
According to Britannica (article 21279) advertising presents a reason to buy a
product but consumer promotion offers a short-term incentive to purchase.
Consumer promotions often attract brand switchers (those who are not loyal to a
specific brand) who are looking mostly for low price and good value. Thus,
especially in markets where products are highly similar, consumer promotions can
cause a short-term boost in sales. Abraham and Lodish (1987) stated that many
consumer goods categories sold 90% of their volume on special deals which is a
result of consumer promotion. Consumer promotion is regarded to be a tool that
helps manufacturers and retailers to achieve their objectives of generating sales
(Alvarez and Casielles, 2004). They also stated that the influence of sales
promotions on the consumer will also depend on the consumers characteristics.

4.2 Price Perception:

According to Schiffman and Kanuk (2004) price perception is about how
customers see a products price, as high, low or fair. They also stated that
perception of price inequality affect consumers perceptions of value and finally
their willingness to buy a product. According to Moore et al. (2003) years of study
concerned with price show both positive and negative perceptions serve as
marketplace cues. Several studies have also portrayed the role of price perceptions
as an attribute to success (Jiang and Rosenbloom, 2004). When the price
perceptions are high this is a symbol of positive value, prestige and status (Moore
et al., 2003).

Page | 16

The concept of reference price is related to price perceptions. Schiffman and

Kanuk (2004) stated that reference price is the price the consumers use as a basis
for comparison in judging another price. It is through reference price that the price
perception of a brand of product is formed. When the consumer plans to buy a
product, he or she will judge prices comparatively with the reference prices in
order to decide whether the price is acceptable or not (Alvarez and Casielles,
2004). They also stated that, a result of consumers comparison between the prices
and the reference price, probable losses and gains emerge. The consumer perceives
again when the reference price is higher than the observed price. If the observed
price is higher than the reference price, the consumer experiences a loss.

4.3Brand Loyalty:
Brand loyalty is the ultimate desired outcome of consumer learning
(Schiffman and Kanuk, 2004). According to (Rawly and Dawes 1999) brand
loyalty is the likelihood of positive attitudes and behaviors of consumers towards a
particular brand; this could amount to repeat purchase and positive word of mouth.
They also stated that a loyal customer base is an asset for a company and it reduces
the need for seeking new customers. It is also a known fact that retaining current
customers requires less money and effort than getting new ones. The strongest
measure of brand value is the loyalty a company produces among customers
(Aaker, 1996). According to Quester and Lim (2003) brand loyalty is known to
have two components, namely attitudinal loyalty and behavioral loyalty.
Behavioral loyalty is related to consistent purchase behavior of a specific brand; it
is the consumers overt purchase behavior (Dikempe et al., 1997) while attitudinal
loyalty refers to a highly favorable attitude towards a particular brand.
Jones and Sasser (1995) indentified three parts of brand loyalty: re-buy
intention, primary behavior and secondary level behavior. According to Jones and
Sasser (1995) re-buy intention refers to future intention of the consumer to repurchase the product or service; primary behavior means the practical re-visiting
behavior of a consumer; while secondary-level behavior indicates the willingness
of a customer to recommend the product to others and enhances customer loyalty
through human relationship (Jones & Sasser, 1995). Oliver (1999) further stated
Page | 17

that loyalty is a deeply held commitment to re-buy or patronize a preferred product

or service consistently in the future, thereby causing repetitive same-brand or
same-brand set purchasing. Chen and Ching, (2007) suggested that loyalty
comprises of two dimensions: behavior and attitude. The behavior dimension is
characterized by consequential actions resulting from loyalty, while attitudinal
dimension refers to formative behavior as commitment i.e. a desire to maintain a
valued relationship. More importantly, the consumers attitude toward a
product/service including attitudinal preference and commitment has a greater
impact on forming loyalty (Chen, et al., 2007). Loyalty therefore, is desirous by all
business managers as it has established that it is cheaper to retain a customer than
to win a new one (Rust & Zahorik, n.d.)

4.4 Relation between consumer promotion and product quality

perceptions
A primary reason for consumer promotion is to give an impression of
bigger quality and appeal to the potential customers (Alvarez and Casielles, 2004).
Sales promotion influences the relative weighting of the utility factors and extends
the perceived quality (Groth and Dye, 1999). Sales promotions can offer many
benefits, the most obvious being monetary savings, and also motivation to
recognize higher quality, convenience, value (Quock and Uncles, 2005). The way a
consumer promotion is framed is likely to affect consumers' perceptions of price,
quality, value, and purchase intentions (Munger and Grewal, 2001). Ong (1997) on
the other hand stated that there is a danger of unfavorable consumer perception as a
result of consumer promotion activity like bonus packs etc. Consumers tend to
think that at the normal price or offering they over pay for a given level of quality,
so their quality perception is affected.
4.5 Relationship between consumer promotion and brand loyalty

Page | 18

According to Alvarez and Casielles (2004) promotions can have, as an

effect, the consumer acquiring a brand that he or she would not otherwise try. They
also stated that categories of products whose buyers are very loyal, consumer
promotion activity like coupons etc that reward the loyalty could have a bigger
effect. Srinivasan and Anderson (1998) acknowledged that many times sales
promotions are used by new entrants to break consumers brand loyalty toward
established brands. In the short run, established brands may be able to ignore sales
promotions from new brands without serious loss of sales. Over the longer run,
however, unless proper defensive and counter-offensive strategies are developed
and implemented, established brands can gradually lose their loyal customer base.
Dawes (2004) on the other hand stated that repeat buying rates that buying a brand
on promotion decreases the likelihood of a subsequent purchase of that brand.

4.6 Relationship between price perception and brand loyalty

Alvarez and Casielles (2004) stated that when the consumer perceives a
loss, the utility that provides (brand) will diminish, and with it the likelihood of
purchase will also go down. If, in contrast, the consumer perceives a gain, he or
she will be more inclined to purchase the brand. Price perceptions are expected
play an increased role in determining both post-purchase satisfaction and brand
loyalty (Jiang and Rosenbloom, 2004). According to representative research higher
perceived prices leads to expectation of higher perceived quality and value, in turn
lead to higher levels of satisfaction of customers, greater levels of customer loyalty
and retention and to a greater success of organizations (Snoj et al., 2004).

Methodology
It is an exploratory research in nature. For this exploratory research, we use

external primary data. This study reflects the perspectives of both male and female
consumers. We will follow convenient sampling method. Theory of Reasoned
Action will be used in this research. For constructing the research methodology
first the research design is to be constructed. Research design is the procedure that
Page | 19

details the procedure necessary for obtaining information and processing that
information to structure and solve research problems. In the study I will need to
follow both descriptive & exploratory of research methods. For ascertaining the
growth of detergent market of Unilever the descriptive research method will be
followed in order to find out the growth through statistical analysis. And the
exploratory research method will be used in order to conduct the customer
perception on sales promotion compared to the other competitors. The information
regarding this will be collected discussing with customers, and no vital decision
making is required but just to give an overview is required. Therefore for the
specific point of finding customer perception exploratory method will be used.
5

Sources of Data

There are two sources through which data will be collected. They are given below.
5.1 Primary Sources of Data
The primary data for this study will be collected from the customers of
laundry detergent living in different parts of Dhaka & Khulna metropolitan areas.
The before & after promotion purchasing or switching frequency will be main
observance. Besides they will be observed on other needed areas and given a
questionnaire to fill up. Along with them the practical experience of working in
Unilever and the direct communication with the Brand Activation Manager,
Territory Managers & Area Sales Managers can play a great role. In addition to
them the Unilever database and Expert opinion is also considered importantly.
5.2 Secondary Sources of Data
The Quarterly sales reports published by Unilever, the official documents
and the reports of zonal trade marketing are significant among the secondary
sources of data.
6

Data analysis & Presentation:

Page | 20

Data will be analyzed using statistical tools. And there will be use of SPSS
and MS EXCEL to ascertain the numerical and statistical findings. Ratio and
percentage based usage analysis will be done using MS EXCEL. And using SPSS,
Correlation Analysis and Regression Analysis will be done in order to find
relationships between different factors and the possible forecast for future market.
7

Expected contributions from the study:

There are some expected contributions from this study.

Firstly there would be proper documentation of the after promotion market
condition of the Dhaka & Khulna metro region.
Secondly, based on the analysis and presentation of the elements the forecasting
about the laundry detergent market can be done.
Thirdly this study will help out to the areas where certain changes are need to be
undertaken for capturing larger share of the market.
Finally understanding the customers perception would be a great assistance to take
necessary strategies for staying ahead of the competitors.

Limitations of The Study:

There are large amounts of information and writings related to the topic of

this research that is available in the internet and from different other sources, but it
may not be possible to gain access to many such information. So there remains a
possibility of missing out some important aspects of the discussed. There is a
major time constraint in doing the research work and preparing the report, a much
bigger collection of information could have been dealt with if there was more time
to analyze them. A minimal sample size will be used for this research; if a larger
sample was taken into consideration the research would have been more accurate.
The survey will be conducted in Dhaka & Khulna city which could be a possible
reason for the peoples mind set to be similar and survey results not being very
different from each other, the results could be different if people from suburban &
rural were brought under consideration.

Page | 21

Again I will be provided with the necessary information at Unilever Bangladesh

Ltd, but due to the exhaustive nature of the study some were incomplete. Some
problems may be termed as limitation of the study. They are as follows:

Relevant papers and documents were not available sufficiently.

Many procedural matters will be written from own observation, that can
also vary from person to person.

They do not provide all the necessary information for their confidential
purpose.

The research is only limited to Dhaka & Khulna city so the overall
condition of data market of Unilever may vary and the finding may
differ in many aspects.

9. Research Timeline
2016
2016
2016
2016
2016

April
May
23rd June
30th June
31st July

Research Proposal & Literature Review Writing

Survey & Data Collection
Data Analysis
Submission of Draft Report
Submission of Final Report

Page | 22

10. Conclusion:
Overall when it comes to consumer promotions, common
views of people about consumer promotion and price perceptions
have a great impact on product quality perceptions. When it
comes to brand loyalty of a promotional brand; perceived quality
play an important role in addition to general views on consumer
promotion and price perception. So all such related factors that
could have an impact on the consumer promotion, price
perception and quality perception should be considered very
important.

Page | 23

Appendix-1.1

Questionnaire
The offered selling price of different brands of detergent is pretty
fair
1. Sales Promotion:
a. Promotional offers with laundry detergent delights me
b. Promotional offers creates interest in me about the
brands of laundry detergent
c. Promotional offers with detergents influence me to
buy the product
d. Promotional offers with detergents seem to be unfair
e. Promotional offers makes me feel like an example of
manipulation
f. A promotional offer gives a good image about a
particular brand
2. Pricing Factor:
a. The different brands of detergent happens to give a
good deal
b. The offered selling price of different brands of
detergent is pretty fair
3. Quality of Detergents:
a. The brands of detergent on promotion is usually good
at cleaning clothes
b. The brands of detergent on promotion are highly
reliable
c. The brands of detergent on promotion usually
matches my expectation
d. The brands of detergent on promotion is usually of
good quality
4. Loyalty Factors
a. I put in an effort while choosing a brand of detergent
b. I always think of a particular brand of detergent when
I consider buying detergent
c. I consider brand to be very important in choosing a
detergent

Page | 24

d. I would be disappointed if I had to buy another brand

of detergent if a particular brand is not available
e. I would continue to buy the same brand of detergent
because I like the brand very much
f. I feel very attached to a particular brand of detergent
over the others
g. Although another brand was on sale, I still bought one
particular brand of detergent
h. Once I have decided on a particular brand of
detergent over other brands, I will stick by it
i. If a particular brand of detergent was not available at
the stores, I would rather not buy at all if I have to
choose another brand

Reference:
1. Aaker, D.A., 1996. Measuring brand equity across products and
2.

markets.California management review, 38(3), pp.102-120.

Abraham, M.M. and Lodish, L.M., 1987. Promoter: An automated promotion
evaluation system. Marketing Science, 6(2), pp.101-123.

3. Alvarez Alvarez, B. and Vzquez Casielles, R., 2005. Consumer evaluations of

sales promotion: the effect on brand choice. european Journal of
Marketing, 39(1/2), pp.54-70.

4. Dawes, J., 2004. Assessing the impact of a very successful price promotion on
brand, category and competitor sales. Journal of product & brand
management, 13(5), pp.303-314.

5. Dodson Jr, J.A. and Muller, E., 1978. Models of new product diffusion through
advertising and word-of-mouth. Management Science, 24(15), pp.1568-1578.

6. Groth, J.C. and Dye, R.T., 1999. Service quality: perceived value, expectations,
shortfalls, and bonuses. Managing Service Quality: An International Journal, 9(4),
pp.274-286.

7. Jedidi, K., Mela, C.F. and Gupta, S., 1999. Managing advertising and promotion
for long-run profitability. Marketing science, 18(1), pp.1-22.

Page | 25

8. Jiang, P. and Rosenbloom, B., 2005. Customer intention to return online: price
perception, attribute-level performance, and satisfaction unfolding over
time. European Journal of Marketing, 39(1/2), pp.150-174.

9. Lauren Munger, J. and Grewal, D., 2001. The effects of alternative price
promotional methods on consumers' product evaluations and purchase
intentions. Journal of Product & Brand Management, 10(3), pp.185-197.

10. Manalel, J., Jose, M.C. and Zacharias, S., 2007, April. Sales PromotionsGood or
Bad. In International Marketing Conference on Marketing & Society(pp. 302-335).

11. Mela, C.F., Gupta, S. and Lehmann, D.R., 1997. The long-term impact of
promotion and advertising on consumer brand choice. Journal of Marketing
research, pp.248-261.

12. Moore, M., McGowan Kennedy, K. and Fairhurst, A., 2003. Cross-cultural
equivalence of price perceptions between US and Polish consumers.International
Journal of Retail & Distribution Management, 31(5), pp.268-279.

13. Pappu, R., Quester, P.G. and Cooksey, R.W., 2005. Consumer-based brand
equity: improving the measurement-empirical evidence. Journal of Product &
Brand Management, 14(3), pp.143-154.

14. Quester, P. and Lin Lim, A., 2003. Product involvement/brand loyalty: is there a
link?. Journal of product & brand management, 12(1), pp.22-38.

15. Rowley, J. and Dawes, J., 1999. Customer loyalty-a relevant concept for
libraries?. Library management, 20(6), pp.345-351.

16. Sands, S., Oppewal, H. and Beverland, M., 2009. The effects of in-store themed
events on consumer store choice decisions. Journal of Retailing and Consumer
services, 16(5), pp.386-395.

17. Schiffman, L.G., &Leslie Lazar Kanuk (2004). Consumer behavior.

18. Snoj, B., Pisnik Korda, A. and Mumel, D., 2004. The relationships among
perceived quality, perceived risk and perceived product value. Journal of Product

19.

& Brand Management, 13(3), pp.156-167.

Soo Ong, B., Nin Ho, F. and Tripp, C., 1997. Consumer perceptions of bonus
packs: an exploratory analysis. Journal of Consumer Marketing, 14(2), pp.102-

20.

112.
Srinivasan, S.S. and Anderson, R.E., 1998. Concepts and strategy guidelines for
designing value enhancing sales promotions. Journal of Product & Brand

21.

Management, 7(5), pp.410-420.

Wong, V., Saunders, J.A., Kotler, P. and Armstrong, G., 2002. Marketing:
podrcznik europejski.

Page | 26

References
Aaker, D. A., 1996. Measuring brand equity across products and
markets.. California Management Review.
Achumba, I., 2000. Strategic Marketing Management Mac-Williams and
Capital Publishers Inc.. s.l.:s.n.
Adeleye, S., 2006. Marketing Principles and Practice (Revised edition).
s.l.:s.n.
Alawiye, A., 2014. Creating an Effective Marketing Plan, Punch,
Home/Business/AMBusiness, s.l.: s.n.
Buel, V., 2004. Marketing Management. s.l.:New York, McGraw Hill.
Chandon, P., Wansink, B. & Laurent, G., 2000. A benefit congruency
framework of sales promotion effectiveness. Journal of Marketing, pp.
64 (4), 65-81.
Chen, Y., Chen, C. & Hsieh, T., 2007. Correlation of service quality,
customer satisfaction customer loyalty and life style at hot springs
hotels.. Journal of International Management Studies.
Danaher, P. & Mattsson, J., 1994. Customer Satisfaction during the
Service Delivery Process,. European Journal of Marketing, 28(5), pp. 516.
DelVecchio, D., Henard, D. H. & Freling, T. H., 2006. The effect of sales
promotion on post promotion brand preference: a meta-analysis. Journal
of Retailing, pp. 83 (3), 203-213.
Govon, D., 2006. Promotional Management. s.l.:Englewood Cliffs New
Jersey Prentice Hall, Inc..
Green, R. D., 2012. Brand equity differences between consumer income
groups: The role of marketing strategy. Journal of Management and
Marketing Research.
Jones, T. O. & Sasser, W. E., 1995. Why satisfied customer defect.
Harvard Business Review,, pp. 73 (6), 88-99..
Kotler, P., 2008. Marketing Management an Asian Perspectives. s.l.:s.n.
Kwok, S. & Unncles, M., 2005. les promotion effectiveness: the impact of
consumer differences at an ethnic-group level.. Journal of Product and
Brand Management, pp. 14(3), 170-186.
Laroche, M., 2002. Selected issues in modeling consumer brand choice:
the extended competitive vulnerability model.. In A.G. Woodside and E
Moore (Eds.) Essays by Distinguished Marketing Scholars of the Society
for Marketing Advances (pp. 69-114), Kidlington: Elsevier Science.
Page | 27

Luk, S. T. K. & Yip, L. S. C., 2008. The moderator effect of monetary

sales promotion on relationship between brand trust and purchase
behavior.. Brand Management,, pp. 15 (6), 452-464.
Mariole, V. P. & Elina, B. D., 2005. Sales promotion effects on consumer
based brand equity. International Journal of Market Research, pp. 47 (2),
172-204.
Nagar, K., 2009. Evaluating the effects of consumer sales on brand loyal
and brand switching segments.. VISSION-Journal of Business
Perspective.
Nijs, V. R., Dekimpe, M. G., Steenkamps, J. B. E. & Hanssens, D. M.,
2001. The category demand effects of price promotions. Marketing
Sciences.
Odugbesan, O. & Gbolahan, S., 1996. Distribution Channel
Management: Mukugamu, Nigeria Co, Lagos.. s.l.:s.n.
Osuagwu, L. & Eniola, V., 1997. Marketing Management: Principles,
Strategies and Cases: Malthouse Press Ltd.,. s.l.:s.n.
Peattie, K. & Peattie, S., 2009. Social Marketing: A Pathway to
Consumption Reduction, Journal of Business Research. s.l.:s.n.
ridges, E., A., B. R. & Yim, C. K., 2006. Effects of prior brand usage and
promotion on consumer promotion response. Journal of Retailing, 82
(4), 295-307.
Rust, R. & Zahorik, A., n.d. Customer satisfaction, customer retention
and market share.. Journal of Retailing.
Salvi, P., 2013. Effectiveness Of Sales Promotional Tools: A Study On
Discount, Price Off And Buy One Get One Free Offers In Branded Apparel
Retail Industry In Gujarat. ELK Asia Pacific Journal of Marketing and
Retail Management, 4(4).
Schneider, L. & Currim, I., 1991. Consumer purchase behaviors
associated with active and passive deal-proneness. International Journal
of Research in Marketing.
Singh, J., 1991. Understanding the Structure of Consumers Satisfaction
Evaluations of Service Delivery. Journal of the Academy of Marketing
Science, 19(3), pp. 223-244.
Swait, J., T., E., J., L. & C., D., 1993. The equalization price: A measure of
consumer-perceived brand equity. International Journal of Research in
Marketing, Volume 10, pp. 23-45.
Witton, C., 2006. Concept of trade Promotion Spending and
Merchandising Industry Study. s.l.:s.n.
Page | 28

Page | 29