The Impact of Sales Promotions on Brand Loyalty

Abstract

Customers can be distinguished as loyal, and non-loyal depends on their loyalty degree towards a brand. Customers behaviour can be influenced by many factors, such as brand name, product quality, price, style, store environment, service quality or promotions. This study investigates one of these factors, sales promotions, and what effect do they have on customers brand-switching behaviour in consumer package goods category - shampoo. In this present paper, valid answers from 156 consumers were collected and analysed. It was found that non-loyal customers tend to switch brands due to sales promotions more than loyal customers. Primarily, there was a statistically significant difference between the customers’ category and brand-switching behaviour due to price discounts and extra grammage. Furthermore, it was found that there is a difference between gender and brand-switching behaviour due to samples.