Abstract:
Sales promotions have been described as an effective means of inducing customers to
change their attitude or behavior favorably towards a product. Both monetary and nonmonetary
promotions have been effectively used over time to generate additional sales
for a product.
This research is based on the Benefit Congruency Framework and is used to test the
effectiveness of different types of sales promotions for hedonic and utilitarian products
available in Pakistan. The purpose of this study is to analyze the effectiveness of sales
promotions on consumers’ preferences and the impact of monetary and non-monetary
promotions on hedonic and utilitarian goods
The hypothesis that were based upon the Benefit Congruency Framework and used for
this study are;
1. Monetary promotions are relatively more effective (compared to Nonmonetary
promotions) for utilitarian products than for hedonic products.
2. Non-Monetary promotions are relatively more effective (compared to
monetary promotions) for hedonic products than for utilitarian products.
For this purpose a consumer survey was undertaken with the help of a questionnaire.
Four brands in two product categories were chosen. In the findings it was seen that
monetary promotion for both the utilitarian products (Brooke Bond Supreme and Dalda)
increased the number of potential users by a higher margin as compared to non-monetary
promotions. In the findings it was also seen that non-monetary promotion for both the
hedonic products (Khaadi and Bhabi’s) increased the number of potential by a higher
margin as compared to monetary promotion.
NUST Institute of Management Sciences
