Title |
"The effect of monetary versus non-monetary sales promotions on online purchase intention, depending on the internet experience" / |
Translation of Title |
„Piniginių ir nepiniginių pardavimo skatinimo priemonių įtaka ketinimui pirkti internetu, atsižvelgiant į interneto patirtį". |
Authors |
Beloglavkaitė, Eglė |
Full Text |
|
Pages |
119 |
Keywords [eng] |
sales promotion, price discount, internet experience, hedonistic products, utilitarian products, monetary promotions, non-monetary promotions, online sales promotion, price discount, price value offer types, free gifts, coupon codes, internet experience, perception of offer value, price discount, scepticism, price offer perception, SOR. |
Abstract [eng] |
Purpose – The aim of this study is to learn more about the factors that impact customers' purchase intentions under the influence of monetary versus non-monetary sales promotions. The study will look at the following variables: emotional response to sales promotions, scepticism, Internet product purchase risk perception (IPPRP), Internet experience including consumption time and internet usage, and engagement with online shopping, as well as hedonistic and utilitarian product categories. Design and methodology– In an experimental context, 307 subjects were randomly assigned out of which 151 people responded to the non-monetary promotion survey and the remaining 156 people responded to the Monetary promotion survey. Research design consists of 2 (promotional types: 10 EUR discount coupon code and Free Gift worth 10 EUR) and 2 (product types: utilitarian versus hedonic – consumer electronics and apparel item). Findings – The research findings indicates that the emotional response has an influence on purchase intention. This relation could be affected by consumer's scepticism and result in lower purchase intention. Likewise, non-monetary and monetary sales promotions (e.g., Free Gifts, coupon codes) positively influence purchase intention and has a significant impact on consumer’s emotional response. Based on data, Free Gifts are more effective to increase purchase intention, but coupon codes evoke more positive emotional response to sales promotions. The paper also establishes correlation between hedonistic and utilitarian product categories and increase in positive emotional reaction towards sales promotions. These product attributes have a significant effect in shaping Internet product purchase risk perception (IPPRP). In turn, IPPRP has a negative effect on positive emotional response and purchase intention. However, the higher the engagement with online shopping the lower perceived risk. Moreover, Internet experience (Internet Usage, Consumer Duration and Percentage of Online Shopping) partially influence lower Internet product purchase risk perception. Overall, there is no significant relationship between emotional response evoked by the level of Internet experience and influence on purchase intention. Although Consumer Duration and Percentage of Online Shopping has a statistically validated impact on emotional response to sales promotions. Research limitations/implications – This study only looked at two forms of sales promotions and two types of products. The distinctive relation between utilitarian and hedonistic product categories and different types of sales promotions should be measured in the future research. Other variables, such as higher and lower discount rates should also be examined, and a representative sample should be used. Full price offer could be measures to validate consumers response to different sales promotions versus full price offers. Practical implications – This paper offers useful recommendations for developing monetary and non-monetary sales promotions in the online environment. The findings of this study are especially relevant to increasing purchase intent using the promotional framing of a money-off coupon code and a Free Gift offer. Value – The majority of past research has concentrated on monetary versus non-monetary sales promotions without accounting for digital skills and interrelation between emotional reaction to sales promotion and purchase intention. This paper takes into account such predictor variables as scepticism to promotions, product category, Internet experience, engagement with online shopping and IPPRP that have an impact on this interrelation. |
Dissertation Institution |
Vilniaus universitetas. |
Type |
Master thesis |
Language |
English |
Publication date |
2022 |