What benefits do sales promotions provide for consumers? In this study the authors develop a framework of the multiple consumer benefits of a sales promotion and discuss the implications of these benefits and the benefit congruency frameworks for understanding consumer responses to sales promotions.

Abstract

Monetary savings are not the only benefits that come with sales promotions. Hedonic and utilitarian benefits also explain a consumer’s response to a promotion. Among the hedonic benefits are opportunities for value expression, entertainment, and exploration. Utilitarian benefits refer to savings, enhanced product quality, and shopping convenience.

This research further indicates that nonmonetary promotions are associated more with hedonic benefits than utilitarian benefits as opposed to monetary promotions, which provide more utilitarian benefits than hedonic benefits. Consequently, monetary promotions are found to be more effective for utilitarian products than for hedonic ones while the opposite is true for nonmonetary promotions. The resulting implications include understanding consumer responses to sales promotions, reexamining the value of everyday-low-price strategies, and creating more effective promotions.

For more information see Chandon, Pierre, Brian Wansink, and Gilles Laurent (2000), “A Benefit Congruency Framework of Sales Promotion Effectiveness,” Journal of Marketing, 64:4 (October), 65-81. Reprinted with permission from Journal of Marketing , published by the American Marketing Association http://www.marketingpower.com/content1053.php

Contact:
Brian Wansink, PhD
Food and Brand Lab, Director
110 Warren Hall
Cornell University
Ithaca, NY 14853
Email: foodandbrandlab@cornell.edu

*This study was conducted at the University of Illinois, former location of the Cornell Food and Brand Lab.

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