USAGE PATTERN OF SALES PROMOTION IN THE KOREAN MARKET

Year 2017, , 296 - 302, 30.09.2017

Gae Eun Kwon Dong Woo Ko Sang-uk Jung

https://doi.org/10.17261/Pressacademia.2017.707

Abstract

Purpose
-  An increasing number of
retailers and manufacturers are relying on sales promotions to boost sales,
extend market share, and clear excess inventory. Previous research on sales
promotions primarily focus on the effect of this approach on two main
perspectives: firm level, which includes sales, market share, and firm
performance; and customer level, which involves perceived quality of
product/service, change in reference price, and purchase/repurchase intention.
To help subsequent and new research on these issues, this research note focuses
on finding patterns of sales promotions conducted in various sectors of
industry in the Korean market.

Methodology
- A survey on the sales promotion usage pattern of a company was conducted
with 74 decision makers in various companies followed by a small group
interview.

Findings- Results
indicated that price off and bonus pack sales promotions were the main types of
sales promotions conducted and considered in most sectors of industry in Korea.
Decision makers were also found to have knowledge on the long-term disadvantage
of sales promotions. Despite this advantage, two main reasons were pointed out
for the continuing conduct of sales promotions: reaction to the sales
promotions of competitors and expectation of other members of the
organizations.

Conclusion- This research
on the usage pattern of sales promotions in Korea can contribute to the choice
of the next sales promotion research topic in Korea and in other nations.    

Keywords

Sales promotion, price off, bonus pack, long-term effect, survey

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