The Effect of In-Store Promotion towards Customers’ Purchase Decision The Case of Shoa Supermarket
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Date
2019-06
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Addis Ababa University
Abstract
Promotions generally have an important role in the marketing program of retailers. In recent times, retailers are diverting a growing proportion of their promotion budgets from traditional out-of store media advertizing to in-store communication. This research was conducted to investigate the effect of in-store promotion on customer’s purchase decision: the case of selected shoa supermarkets in Addis Ababa. Thus, it has tried to assess the status and the ways in which in-store promotion are carried out in the selected branches of the supermarket. It has considered different in-store elements which are mostly applied by the supermarket through categorizing them in to two i.e. price based in-store promotions such as, temporary price reduction, loyalty discount, and multi-item promotion as well as non-price based in-store promotions such as point of sale advertisements, premiums and in-store salespersons. The kind of research design used was an explanatory type. To achieve the objective of the study, five point’s likert scale questionnaire was physically distributed to 384 customers of the supermarket Out of which 330 (86%) were collected. Descriptive, correlation and regression analysis methods were used to analyze the collected data by using SPSS software version 20 and Questionnaires reliability was estimated by calculating Cronbach’s Alpha. Descriptive analysis tools such as frequency, percentage, mean along with standard deviation and statistical analysis tools such as correlation coefficient were worked out and used to explore the relationships between variables. Finally, Regression analysis was performed to study the effect of independent variables on purchase decision. The research findings indicated that there was a significant relation between the selected in-store promotion elements and purchase decision. All the independent variables were examined simultaneously on purchase decision; results showed that temporary price reduction from price based and Point of sale as well as in-store salesperson from non-price based in-store promotion have a significant effect on purchase decision. The findings also suggested some measures which can be taken into consideration in order to enhance purchase decision behaviors of customers in the selected supermarket. As a result, from customers of the three selected supermarkets, the study has proved that in-store promotion has a significant influence on customer purchase decision
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Keywords
purchase decision, price-based in-store promotion, non-price based in-store promotion