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Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 The Impact of Promotional Mix Elements on Consumers Purchasing Decisions Jamil Abdulkarim Abdullah Business Administration Department, Collage of Business Administration and Economics, University of Salahaddin, Kurdistan Region, Iraq [email protected] Abstract This study empirically seeks to examine the impact of promotional mix elements on consumers purchasing decisions and determine the most influencing elements on making decision. In conducting this study data collected through primary sources using a survey questionnaire from a random sample of 100 respondents. Questionnaire consists of (28) items measured on five point Likert scale. The data obtained analysed quantitatively using SPSS program version 20 for both statistical tools descriptive and inferential statistics. The result from this study revealed that there is a positive relationship between elements of promotional mix namely advertising, personal selling, sales promotion, and direct marketing, and consumers purchasing decision, as well as statically there is a significant impact of promotional mix elements on consumers purchasing decisions. In addition, the finding from this study shows that among the elements of promotional mix, advertising is the most influencing elements on consumer purchase decision. Keywords: Promotional Mix Elements, Consumers, Purchasing Decisions. Introduction: Nowadays, the world exists under fast changes and developments including various areas of life such as the emergence of the concept of globalization as well as changes resulting from the rapid transfer of information, or even the need to focus on communication and media as a mean of monitoring and sensors for the transfer of new ideas and creations that the indicators reflects of the concept of competition and the seriousness importance to the organization. Therefore, marketing is considered to be the necessary activity of the tools and important in the competitive struggle between organizations which directs organization to be able to confrontation and continue to remain in the market, since marketing opens up new horizons through activities and technical reasons used to identify the needs and desires of consumers and gain their support. Here, the promotional mix element plays a significant role in providing information on the products that available in the market and allowing consumers to improve the range of its knowledge of these products which it guides them to their purchasing decision. Marketer should make every effort to plan best possible arrangements of the elements which lead to increase their sales. Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 171 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ Therefore, well designed strategies contribute this increase as well as this will aids consumer to recognize the products benefits and usage. The purchase decision related to the services and goods depends on some factors such as rebates, offers, location of the store, warranty, discount, product value, brand name, and many more. Thus, promotional mix elements such as advertising, sales promotion, personal selling, direct promotion, public relation and others consider being the most effective tools that guide the consumers to make a decision to try a service or purchase a product. (Neha and Manoj, 2013). Statement of Problem: This study aims to examine the impact of promotional mix elements namely advertising, personal selling, sales promotion, and direct marketing (independent variables) on consumers purchasing decisions (dependent variable). In the previous studies, among this various promotional mix elements it has been found that each elements performing as stimulating variable for quick selling. Additionally, his study attempts to identify the elements which have the most impacts on Kurdish consumers purchasing decisions. Consequently, this study attempts to answer the following question: Do the promotional mix elements have significant impact on consumer purchase decision? Objectives of the study: To identify the promotional mix. elements of e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 To examine the impact of promotional mix elements on consumers purchasing decisions. To determine the most influencing elements on consumer purchase decision. To find out the relationship between promotional mix elements and consumers purchasing decisions. Literature Review Promotional Mix Elements: According to Kotler & Armstrong (2004) promotion mix elements is activities that communicate the product or service and its merits to target customers and persuade them to buy. Furthermore, Belch and Belch (2012) states that the promotional mix has included six elements: advertising, direct marketing, internet/interactive marketing, sales promotion, public relations, and personal selling. The present study will examine four elements from these elements that has been mentioned by Belch and Belch, which are: advertising, personal selling, sales promotion, and direct marketing since they are mass communication tools available to marketers. Advertising: According to Kotler and Keller (2006) Advertising is a non-personal communication means of goods or services by using mass communications media for instance television, newspapers, magazines, cinema, radio etc. and is implemented through a specific sponsor, Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 172 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ for a fee paid to impact consumer purchasing decision. As a promotional strategy, Amin and Bashir (2014) state that advertising serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. In general, the most important methods of advertising include newspapers, magazines, radio, television, cinema, posters and other. Sales Promotion Promotion is consider to be one of the most important methods that attract consumers to purchase their needs from products and try services (Amin and Bashir, 2014). The sales promotion's purpose is to encourage the consumers to directly purchase a particular goods or services, in consequence enhancing marketers' sales (Rizvi, et al, 2012). The types of sales promotional has been identified by (Boddewyn & Leardi, 1989) which are includes: free offers with reduced prices, samples and vouchers, incentive programs, and some other promotions. While, in his part (Rahmani et al, 2012) states that Promotion tools consist of coupon, advertising goods and services, rewards, free samples, and discounts. Personal Selling: Personal selling is the personal efforts directed to the customer, which aims to encourage consumers to purchase products or try a service through personal meetings with him/her (Hejazi, 2005). Moreover, personal selling involves a twoway flow of communication between a purchaser and retailer, often in a face-to- e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 face encounter, designed to influence consumers’ purchase decision (Kotler and Armstrong, 2004). The success of personal sell element depends on some factors, for instance the staff's sales capabilities, level of their skills, personal appearance and methods to bring them to the information, their oral presentation and persuasion. The objectives of personal selling identifies through three targets. First, finding consumers and secondly, to convince the customer to buy a product or services. Thirdly, the consumer is satisfied and happy with this purchase (Al-Bakri, 2006). Direct Marketing Direct marketing refers to all activities performed by the seller to attract potential customer, which are focused towards the transfer of all products and services that covenant with the purchaser (Stone & Jacobs, 2007). The types of direct marketing includes using some methods such as phone, fax, e-mail, post, Internet for direct contact with certain consumers as well as potential customers and urging them to direct response (Kotler, 2006). The objectives of direct marketing are aim first to measure consumer response to promotional offers by the marketers. Second aim is building long-term relationships with consumers. The last aim is the use of modern technologies in the deal between the sellers and the other sellers or their consumers such as by using e-mail or online communication (Al-Bakri, 2006). Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 173 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ Consumer Purchasing Decision: Consumer purchasing decision is direct actions and behaviors of individuals to obtain a goods or service, which includes making purchasing decisions (Sabra, 2010). In addition, Schiffman and Kanuk, (2003) indicate that consumer purchasing decision is the method by which an individual or groups identifies a choices, meet information, evaluate the data, and establishes the best option to decide. Consumer's purchase decision process has some stages. First one is a sense of need stage. Second on is search for information and third stage is evaluation of alternatives purchases. e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 Fourth one is purchasing decision and the last one is evaluation after purchases (Sabra, 2010). Research Framework: Figure (1) assumed the research framework for this study, which supposes a relationship and an impact of the promotional mix elements on consumers purchase decision. This study includes two variables. Firstly, independent variables which it represents by promotion mix elements (advertising, sales promotion, personal selling, and direct promotion). Secondly, dependent variable, represented by consumers purchasing decision. Advertising Consumers Purchasing Decision H1 H2 Sales promotion Personal selling Promotional Mix Elements Direct Marketing Fig (1) Research Framework Research Hypotheses : This study seeks to test the following hypothesis based on the above objectives: H1 - There is measurable positive relationship between Promotional Mix Elements and Consumers Purchasing Decisions. H2 - There is statically significant impact of Promotional Mix Elements on Consumers Purchasing Decisions. The significance of the Study This study, with an emphasis on Kurdish consumers is the first complete inclusive study of the impact of promotional Mix elements on purchasing decisions in the Kurdistan Region-Iraq. In conducting research studies, many researchers in Kurdistan Region compel to rely mainly on foreign literature as the Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 174 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ literature on the link between the impact of promotional Mix elements on purchasing decisions is rare. Consequently, the result from this study will be useful for academicians as they might achieve insights and suggestions for future studies, and can serve as an additional source of reference. Moreover, the findings from this study will be helpful for organizations that export their products to Kurdistan Region, as they might draw a clear figure to their products and this might aids the consumers in their purchasing decisions. Population and Sample Sekaran & Bougie (2010:443) defined the population as "the entire group or people, events, or things that the researcher desires to investigate". Hence, e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 the population in this study consists of all Kurdish consumers. The sample of this study is the consumers as much as 100 respondents. The sampling design is sample random sampling that is consider as the best approach of gaining some efficient and quick information. Results and Discussion: Reliability Analysis For the purpose of this study, Cronbach's alpha as it is showed in table (1) was administrated to test the stability of the scale, which indicated how well the items measuring a concept hang together as a set, and it is equal to 0.893 for the whole questionnaire, which is consider to be high reliability (Sekaran, 2005). Table (1) Reliability Statistics No. of Items Cronbach's Alpha 28 .893 Descriptive Statistics: The table below (2) shows the descriptive analysis. The answer of advertising, sales promotion, personal selling, direct marketing, and consumers purchasing decision explain agreeableness. Hence, it means that all the elements of promotion mix will impact on consumers purchasing decision. In addition, the variable of advertising was the most important factor stimulating to impact consumers purchasing decision with a rate of 75.7% agreement. On the other hand, personal selling was the least important factor to consumers purchasing decision with a rate of 69.68% agreement. Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 175 e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ Table (2)Descriptive Statistics Descriptive Statistics Variables N Mean Std. Deviation Rate agreement Rank Advertising 100 3.7850 .73963 75.7% 1 Sales promotion 100 3.4940 .98163 69.88% 3 Personal selling 100 3.4840 .95903 69.68% 4 Direct Marketing 100 3.6940 .85112 73.88% 2 Consumers Purchasing 100 Decision 3.7360 .97520 74.72% Pearson Correlation analysis: The table below (3) explains the result of analysis carried out to test the first hypotheses which states that there is measurable positive relationship between Promotional Mix Elements and Consumers Purchasing Decisions. To test the relationship among the variables; Pearson’s (r) correlation was calculated. The correlation coefficient for the data revealed that variables tested were positively and significantly related. In the table (3) the correlation matrix explains that the independent variables (advertising, sales promotion, personal selling, and direct marketing) were positively correlated with consumers purchasing decision. Moreover, the table shows that advertising achieved the highest positive correlation with consumers purchasing decision. On the other hand, direct promotion has the weakest correlation with consumers purchasing decision. In addition, table (3) illustrates that advertising, sales promotion, personal selling, direct marketing, have positive relationship with consumers purchasing decision at the value of (0.000, 0.000, 0.000, and 0.003) respectively, which they are less than 0.05. Consequently, the first hypotheses were accepted. Table (3) Pearson Correlationanalysis Variables Advertising Sales promotion Personal selling Direct Marketing Consumers Purchasing Decision .522** .421** .430** .295** Sig. (2-tailed) .000 .000 .000 .003 **. Correlation is significant at the 0.01 level (2-tailed). Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 176 e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ marketing. The four elements of promotional mix that were studied, illustrate 48.5% of the consumers purchasing decision as characterized by the adjusted R Square. Consequently, this means that other elements not studied in this study contribute 51.5% of the consumers purchasing decision. Regression Analysis This study conducted a multiple linear regression analysis in order to find out the relationship between the consumers purchasing decision and the four independent variables: advertising, sales promotion, personal selling, and direct Table (4) Model Summary Model R R2 Adjusted R2 Std. Error of the Estimate 1 .560a .314 .485 .82479 The significance value is 0.000 which is consumers purchasing decision. At 5% less than 0.05. Therefore, the model is level of significance, the F calculated was statistically significance in predicting how 10.850, which explains that the overall advertising, sales promotion, personal model was significant. selling, and direct marketing impacts Table (5) ANOVA analysis ANOVAa Model 1 Sum of Squares Df Mean Square F Sig. Regression 29.524 4 7.381 10.850 .000a Residual 64.626 95 .680 Total 94.150 99 The results presented illustrates that statically there is a significant impact of advertising on consumers purchasing decision as explains by a coefficient of .688 as shown by a p-value of 0.000. Furthermore, statically there is a significant impact of sales promotion on consumers purchasing decision as shown by a coefficient of .418 and a p-value of 0.000. The results explain that statically there is a significant impact of personal selling on consumers purchasing decision asdemonstrates by a coefficient of .438 and a p-value of 0.000. Finally, the results explain that statically there is a significant impact of direct marketing on consumers purchasing decision as explains by a coefficient of .339 and a p-value of 0.003. Consequently, the regression results explain that advertising, sales promotion, Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 177 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ personal selling, and direct promotion has significant impact on consumers e-ISSN: 2395-0463 Volume 02 Issue 1 January 2016 purchasing decision and therefore the second hypotheses is accepted. Table (6)Regression Analysis Coefficients a Unstandardized Coefficients Standardized Coefficients B Std. Error Beta (Constant) 1.131 .438 Advertising .688 .114 Sales promotion .418 Personal selling Direct Marketing Model 1 T Sig. 2.582 .011 .522 6.058 .000 .091 .421 4.598 .000 .438 .093 .430 4.721 .000 .339 .111 .295 3.062 .003 a. Dependent Variable: Performance Conclusion On the basis of above results it can be concluded that promotional mix elements has a significant impact on consumer purchase decision. According to the participants the most influenced elements is advertising that impacts their purchasing decision. Promotional mix elements are the major communication mix tools being used by approximately all of the marketers to positively impact consumers purchasing decision. The study concluded that there is a positive relationship between promotional mix elements and purchasing decision. Advertising achieved the highest positive correlation, and direct promotion has the weakest correlation with consumers purchasing decision. Furthermore, the study concluded that statically the promotional mix elements have impacts on purchasing decision. Recommendation: It is necessary to companies and sellers pay more attention towards increasing the promotional activities, in particular the direct marketing element to impact the purchasing decision, using phone or mail in introducing products or services, or to send messages by using mobile phone which would impact the purchasing behavior. Furthermore, marketers should pay greater interest to actively manage personal selling by increasing training of sales representatives and development their performance. Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 178 Journal for Studies in Management and Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ References [1] Al-Bakri, T. (2006), Marketing, the Foundations of Contemporary Concepts, Amman: Al-Yazouri for Scientific Publishing and Distribution. [2] Amin, H. J., and Bashir A. M. (2014) The Impact of Advertising and Sales Promotion on Initial Purchase, Addition and Change of Existing GSM Networks by Students in Nigeria. International Journal of Business and Management; Vol. 9, No. 10, PP:161-169. [3] Belch , G. E and Belch, M. A. (2012), Advertising and Promotion. London: McGraw Hill, 9thed. [4] Boddewyn, J. J. and Leardi, M. 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