A Benefit Congruency Framework of Sales Promotion Effectiveness
Chandon, Pierre, Brian Wansink, and Gilles Laurent (2000). A Benefit Congruency Framework of Sales Promotion Effectiveness. Journal of Marketing, 64(4), 65–81. doi: http://dx.doi.org/10.1509/jmkg.220.127.116.1171
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 non monetary 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 non monetary promotions. The resulting implications include understanding consumer responses to sales promotions, reexamining the value of everyday–low–price strategies, and creating more effective promotions.
Download a PDF of the article here. Reprinted with permission from Journal of Marketing , published by the American Marketing Association.
*The study was conducted at the University of Illinois, former location of the Cornell Food and Brand Lab.