Essays on Sales Promotion and Consumer Decision Making Process

Abstract

Sales promotion is a common tool used by retailers. However, even though it is commonly used in marketplace, sometimes it cannot achieve the results as retailers expect. Thus, the specific process of consumer decision making and factors that influence the effect of promotions on consumer behavior need further research. This thesis is composed of a literature review of sales promotions, consumers response to a specific sales promotion (Minimum Purchase Requirement deal), and consumers’ decision-making process when using different symbols to shop. The first chapter presents an integrative review to summarize past empirical or theoretical literature to provide a comprehensive understanding of consumers’ and marketers’ response towards monetary and non-monetary sales promotion. The second chapter examines how the consumer’s regulatory focus influences their shopping behavior when they choose to use Minimum Purchase Requirement deals. The third chapter focuses on the interaction effect between symbol usage and personality traits on consumer’s consideration set in online shopping. The relationship among the three chapters is that the first chapter reviews the existing research about sales promotion, and the second chapter focuses on a specific type of sales promotion and examines the effect of consumers’ goal pursuit strategy (regulatory focus) on purchasing behavior when using the deal. Even though the third chapter focuses on external triggered decision-making cues (symbol usage), psychological factors (personality traits) and decision-making process (consideration set) in shopping rather than sales promotions, it follows the same thread of research in consumer decision making process and factors influencing consumer behavior. The thesis aims to contribute to the literature of sales promotion, regulatory focus, priming effect of symbol usage and consumer decision making and behavior. The findings have important implications for marketing practitioners and retailers.