An Examination of Sales Promotion Programs

Journal of Promotion Management, 16:467–479, 2010
Copyright © Taylor & Francis Group, LLC
ISSN: 1049-6491 print / 1540-7594 online
DOI: 10.1080/10496491003659563

An Examination of Sales Promotion Programs in Hong Kong: What the Retailers Offer and What the Consumers Prefer
LIN YANG
Victoria University of Wellington, Wellington, New Zealand

WAH-LEUNG CHEUNG
Hong Kong Baptist University, Hong Kong, China

JAMES HENRY and JOHN GUTHRIE
University of Otago, Dunedin, New Zealand

KIM-SHYAN FAM
Victoria University of Wellington, Wellington, New Zealand

This study gives an insight into the retailer’s capability of managing sales promotion by examining the sales promotion programs offered by Hong Kong cosmetic and toiletry retailers and the consumers’ preferences. The results indicate that instant-reward programs are popular among retailers and preferred by consumers. The results also show that the preferences for sales promotion programs are dependent upon consumers’ demographic and sociocultural characteristics. Implications for advertisers designing and communicating sales promotions are offered.
KEYWORDS consumer behavior, Hong Kong, retailing cosmetics and toiletries, sales promotion

INTRODUCTION
In the past decade there has been greater pressure on marketing budgets and a greater demand on marketing management to achieve marketing communications objectives more efficiently. Marketers search for a more cost-effective way to communicate with the target markets other than conventional media advertising. As a result, manufacturers and retailers have been gradually
Address correspondence to Lin Yang, School of Marketing and International Business,
Victoria University of Wellington, PO Box 600, Wellington 6140, New Zealand. E-mail: [e-mail] 467

468

L. Yang et al.

switching from above the line mass media advertising to a variety of below the line sales promotions. This trend reflects the ongoing disenchantment
with

References: Alvarez, A. B., & Casielles, R. V. (2005). Consumer evaluations of sales promotion: The effect on brand choice Blattberg, R. E., & Neslin, S. A. (1990). Sales promotion: Concepts, methods, and strategies Chandon, P., Wansink, B., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness Cheong, S. K. (2005). Asia-Pacific cosmetics and toiletries market overview. Business Week. Retrieved from http://investing.businessweek.com/research/stocks/ private/snapshot.asp?privcapId=9964355 Davies, M. (1992). Sales promotion as a competitive strategy. Management Decision, 30(7), 14–23 Dawes, J. (2004). Assessing the impact of a very successful price promotion on brand, category and competitor sales Fam, K. S. (2001). Promotion practices in the East and West: A cultural explanation. Gilbert, D. C., & Jackaria, N. (2002). The efficacy of sales promotions in UK supermarkets: A consumer view. International Journal of Retail & Distribution Management, 30(6), 315–322 Gilpin, E. A., Pierce, J. P., & Rosbrook, B. (1997). Are adolescents receptive to current sales promotion practices of the tobacco industry? Preventive Medicine, 20(1), Henderson, C. M. (1987). The interaction of coupons with price and store promotions. Advances in Consumer Research, 15, 364–371. Hofstede, G. (1980). Cultures’ consequences: International differences in workrelated values. Newbury Park, CA: Sage. Kassarjian, H. A. (1977). Content analysis in consumer research. Journal of Consumer Research, 4(1), 8–18. Lal, R. (1990). Manufacturer trade deals and retail price promotions. Journal of Marketing Research, 25(6), 428–444. Laroche, M., Pons, F., Zgolli, N., & Kim, C. (2001). Consumers use of price promotions: A model and its potential moderators. Journal of Retailing and Consumer Services, 8(5), 251–260 Lehman, D. R., & Winer, R. S. (2002). Analysis for marketing planning. New York, NY: McGraw-Hill. Liao, S. L. (2006). The effects of non-monetary sales promotions on consumer preferences: The contingent role of product category. Journal of American Academy of Business, 8(2), 196–203. Lichtenstein, D. R., Netemeyer, R. G., & Burton, S. (1995). Assessing the domain specificity of deal proneness: A field study Lin, J. (2007). Market profile: Skincare and cosmetic products in the Hong Kong market Peattie, S. (1998). Promotional competitions as a marketing tool in food retailing. Raju, J. S. (1992). The effect of price promotion on variability in product category sales Schneider, L. G., & Currim, I. S. (1991). Consumer purchase behaviours associated with active and passive deal proneness Tellis, G. J., & Gaeth, G. J. (1990). Best value, price seeking and price aversion: The impact of information and learning on consumer choices Toop, A. (1992). European European. London, UK: Kogan Page. Wakefield, K. L., & Barnes, J. H. (1996). Retailing hedonic consumption: A model of sales promotion of a leisure service