The Impact of Sales Promotion On Consumer Buying Behavior

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The Impact of Sales Promotion on Consumer Buying Behavior
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Institute of Business Management
The Impact of Sales Promotion on

Consumer Buying Behavior
By
Hadiya Samreen - 21774
Syeda Sarah Mashhood - 25502
Yawar Ali - 25586
Submitted to
Nawaz Ahmed
Course Instructor
Method in Business Research
Karachi, Pakistan
2020
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Acknowledgment
“The common facts of today are the result of yesterday’s research.” - Duncan MacDonald
One can have a fair idea of the importance of research from the above-highlighted quote. Being
students of MBA (Masters in Business Administration), we need to be abreast of the world of
research. We are thankful to our course instructor for the “Method in Business Research” course,
Mr. Nawaz Ahmad for providing us with an opportunity to gain practical experience in
researching a real-life topic. Although this research, The Impact of Sales Promotion on
Consumer Buying Behavior was done as a semester project our instructor Mr. Nawaz Ahmad
ensured that the research is at par with the academic standards. Dr. Nawaz Ahmad has helped us
to gain in-depth knowledge from his lectures and this research as a semester project has further
improved our understanding of the methods and techniques of research.
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Abstract
This research studied the influence of sales promotion tools on consumer buying behaviors of a
resident of Pakistan, specifically Karachi. The aim of the study to identify the impact of sales
promotion tools that is price discount, sample, coupon and buy one get one free offer on the
buying behavior of customers. A total of 255 respondents participated in this study through a
questionnaire. The data was collected by using a convenience sample technique. The results
show that the price discount has a significant relationship with consumer buying behavior (t =
3.159, p= 0.002). Free Sample has a strong significant relationship with consumer buying
behavior (t = 3.603, p= 0.000) and Buy-One-Get-One also has a strong relationship with
consumer buying behavior (t = 3.585, p= 0.000), but the coupon has no significant relationship
with consumer buying behavior (t = 1.222, p= 0.223). This study emphasized on how
significantly consumer buying behavior gets influence by sales promotion tools.
Keywords: Sample, Price discount, Coupon, Buy one get one free, consumer buying behavior
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Table of Contents
Acknowledgment ................................................................................................................................ 2
Abstract .............................................................................................................................................. 3
Chapter 1: Introduction ..................................................................................................................... 6
1.1 Background of the study ......................................................................................................... 6
1.3 Objective of the study .............................................................................................................. 7
1.2 Scope of the study .................................................................................................................... 7
1.4 Problem Statement .................................................................................................................. 7
1.5 Research Question ................................................................................................................... 7
1.6 Hypotheses ............................................................................................................................... 8
Chapter 2: Literature Review ....................................................................................................... 9
2.1 Review of Literature ................................................................................................................ 9
2.1.1 Sales Promotions .............................................................................................................. 9
2.1.2 Coupons ......................................................................................................................... 10
2.1.3 Free Samples .................................................................................................................. 11
2.1.4 Buy one get one .............................................................................................................. 11
2.1.5 Price Discounts .............................................................................................................. 12
2.1.6 Consumer buying behavior ........................................................................................... 12
2.2 Conceptual Framework .................................................................................................... 13
Chapter 3: Methodology .................................................................................................................. 14
3.1 Introduction ........................................................................................................................... 14
3.2 Research Design..................................................................................................................... 14
3.3 Variables ........................................................................................................................... 14
3.4 Inclusion Criteria .............................................................................................................. 15
3.5 Data Collection ...................................................................................................................... 15
3.6 Sample and Sampling Technique .......................................................................................... 15
3.7 Statistical Technique ............................................................................................................. 16
3.8 Ethical Consideration ............................................................................................................ 16
3.9 Reliability and Validity ......................................................................................................... 16
Chapter 4: Data Analysis and Interpretation ................................................................................. 18
4.1 Demographics ........................................................................................................................ 18
4.2 Reliability Analysis ................................................................................................................ 20
4.3 Descriptive Analysis .............................................................................................................. 20
4.4 Inferential Analysis ............................................................................................................... 21
4.4.1 Correlation ..................................................................................................................... 21
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4.4.2 Regression Analysis ....................................................................................................... 22

4.5 Hypotheses Assessment Summary ........................................................................................ 24
4.6 Discussion .............................................................................................................................. 24
Chapter 5: Conclusion, Limitations & Recommendation ............................................................... 27
5.1 Conclusion ............................................................................................................................. 27
5.2 Limitations ............................................................................................................................. 27
5.3 Recommendation ................................................................................................................... 28
References ........................................................................................................................................ 29
Appendices ....................................................................................................................................... 30
Appendix A: Questionnaire ........................................................................................................ 30
Appendix B: SPSS Output Data ................................................................................................. 31
Appendix C: Cronbach Alpha Reference ................................................................................... 37
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Chapter 1: Introduction
1.1 Background of the study

Commodities are bought by customers without getting involved in any detailed thought
process. These products are usually routine and it has become a habit to acquire that product or
services it takes very slight cognitive activity to buy any product (Wathieu & Murre, 2007). In
this given situation of purchasing, marketers find it challenging task to divert customers’
attention from one known vendor to another vendor as they are habitual of using these
commodities from the same retailer or manufacturer. Here, marketers use a variety of offers and
advertising techniques for capturing new customers and to stimulate shoppers to change
purchasing patterns and give preference to different commodities. Sales promotion gives benefits
to consumers as well to evaluate and make a comparison between two brands. This increases the
possibilities to influence the buying decision made by consumers. Marketers and retailers make
planned strategies and sales promotional activities as per consumer preferences.
In recent days, businesses use numerous marketing strategies and tactics to boost sales in
the market and to meet their targets on time (Sinha, 1999). Sales strategies are designed to reach
the desired response from customers, sales promotion tools are used in various ways to attract
consumers towards the product or services. This sales activity is designed for a temporary period.
These types of offers and activities enable marketers to get to know shoppers' demand and what
commodity they are willing to shop. Sales promotion techniques are adapted to stimulate the
consumer effectively. (Gilbert D. , 2002)
It is studied that retailers and manufacturers have techniques to induce shoppers to avail
the offer including buy one get one free and free samples of the items to be consumed and coupon
or rebate are inducing factors for sales except for price reduction of the commodity. However,
previous studies show that the advertising message and information about price presentation on
the product to the customer, give a substantial effect on the shopping pattern, and identify the
habit of the customer. It also affects the purchasing power and intention to get a commodity
during the concession period which means sales here (Sinha, 1999)
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1.3 Objective of the study

To know the extensive impact of different methods of advertising or sales which affect
the buying behavior of consumers, the study highlighted different four factors of sales promotion
which can influence the behavior of consumer during procuring any commodity. We studied a
few advertising tactics that are sample, price discount, and coupon and buy one get one free offer
to induce customers to buy and switch their current brands. This research paper aims to detect
the shopper preferences in availing these sales promotional tools, which tools are the most
preferred tools of the customer.
1.2 Scope of the study

The objective of this study is to examine the impact of sales promotion tools on the
buying behavior of the consumer. We have taken independent variables sample, free coupon,
price discount, and buy one get one free and one dependent variable i.e. consumer buying
behavior. For the study, we collected primary data through survey form (questionnaire), we used
a convenience sample technique and studied individuals from a different academic background
and both genders. Geographically, we have covered an area of Karachi city, Pakistan, and 255
respondents actively participated in this study.
1.4 Problem Statement

This research work aims to find the degree and effect of these sales promotion approaches
to the behavior of a consumer while buying. We studied independent variables sample, free
coupon, price discount, and buy one get one free and one dependent variable i.e. consumer
buying behavior. There are numerous tactics and sales promotion tools but we have selected four
tools. To decide how these can stimuli the purchase of the commodity during the sale.
1.5 Research Question

To analyze this research paper, the questionnaire was floated to the respondents to know
their buying behavior towards sales promotion activities. We used a Likert scale to quantify the
level of consent and disagreement of each respondent on a certain parameter.
 What is the impact of buy one get one free offer of sales promotion on consumer buying
behavior?
 What is the impact of a sample of sales promotion on consumer buying behavior?
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 What is the impact of the coupon of sales promotion on consumer buying behavior?
 What is the impact of price discount offer of sales promotion on consumer buying
behavior?
1.6 Hypotheses
H1 – There is a positive impact of Price discounts on consumer buying behavior.
H2 – There is a positive impact of a coupon on consumer buying behavior.
H3 – There is a positive impact of sample on consumer buying behavior.
H4 – There is a positive impact of buy one get one free discount on consumer buying behavior.
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Chapter 2: Literature Review

2.1 Review of Literature
2.1.1 Sales Promotions
According to authors, (Brassington & Pettitt, 2000) advertising of any commodity during
sales, it is a marketing practice to make a scheme by using marketing planning and strategies to
add extra benefit or advantage to complement customers to purchase these products. Usually,
the price of these items is less than the market price on which they are selling in the market. The
purpose behind this activity is to meet assigned objectives given by management and discounted
priced products are available on shelves for a limited period. But once the customer gets switched
from one manufacturer to another he or she will become a regular customer of the company. It
has a long-lasting impact and is used to attract and then retain the customer. Commercial
advertisements and announcements of bargain activity always have a powerful effect on the
buyers’ behavior. In a competitive market where several products are available for a particular
item, a key role is played by such advertisement in promoting any item it helps shoppers to
choose wisely between product and enable them to differentiate between good or better Sales
promotion include but are not limited to buy one get one free, discount price, sample, and
coupon.
Marketers & retailers usually consider sales promotions as crucial tools to use in their
marketing strategies. Some researchers also support sales promotions not only for gaining short
term sales but due to their effectivity in cost compared with other marketing tools (Ahmad, et
al., 2015). As far as customers are concerned, promotion strategies attracting customers to try a
new product or service or increase their buying for old product or service. Sales promotions also
result in getting the attention of new customers towards your product/service. It has been shown
in previous studies that sales increase suddenly when the low-income families got promotions
while others said that it’s due to evoking the interest of existing customers irrespective of income
groups. However, it is observed that promoting any commodity can be the cause of a rapid
increase in sales’ targets.
To stay alive, companies need to differentiate them in a competitive market by adopting

different tools and strategies, sales promotions are a part of that. (Abdi, 2015) argues in his study
that promotional activities are not sustained for a longer period and does not have good
impression than other marketing means like personal selling or advertising to be used for creating
preference of your brand in consumers mind for a longer run still sales promotions are the
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necessary elements for attracting customers, encouraging customers to purchase more, impulsive
purchases by activating stimuli, and interest building in customers for a specified duration. Some
promotional tools as per the previous studies are samples, coupons, price discount, and buy one
get one free.
The study reveals four influencing factors that influence the buying decision. They gave
four types of views to analyze any buying decision, cognitive, economic, passive, and emotional
respectively. The shopper is well aware of the competition in the market, is identified by
economics’ view and they perceive the pessimistic and optimistic view about the product &
services. That perception helps them to purchase a product. The passive view assumes the fact
that customers make impulsive purchases being influenced by the seller's promotional offers.
The emotional viewpoints out that the buyers make a purchase based on their emotions related
to the brand. It supports the concept of brand loyalty. While the cognitive view states that the
purchaser seeks maximum information related to the product and purchase the product with
maximum benefits (Shallu & Gupta , 2013).
2.1.2 Coupons
A coupon is a transaction instrument which is given to a consumer so that he can get a

discount on purchasing a similar product in the future. Coupons can bring drastically a big
change in the increase of revenue of the manufacturer and shows a trend that customers move
from one manufacturer to another based on availing coupon offers. Customers are willing to
change their preferences for availing this offer (Nudubisi & Tung, 2005).
Coupons are the method of sales promotion in which customers who have coupons get
the opportunity to get the rebate on selling price while making a transaction on the counter. The
coupon is considered as the conventional methods that have been used for a long time. Coupons
can be distributed to the customers via emails, messages, advertising, on the packaging of the
product and these can be redeemed only at retailer stores. It is a good option to develop the
interest of the consumer to move from manufacture to another for a good change in choice or
preferences. It is observed that manufacturers want to communicate with the consumers
effectively by using coupon offers, which results on increase in sales and change in the brand
image towards customers (Ahmad, et al., 2015); (Abdi, 2015).
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Literature has given various views to emphasize this sales promotion tool of the coupon,
different authors have written about it including ( (Nevo & Wolfram,, 2002; Raghubir, 1998;
Leone & Srinivasan, 1996; Taylor, 2001). These studies indicated that unpredictable offered
coupons increase the purchase of that product and people tend to buy unplanned products due to
coupon offers on a visit to the market. According to Taylor, coupon redemption has a significant
impact on the buying behavior of the consumer, he conducted a field experiment where
consumers were most likely to repeat their purchases during post promotion tenure. In his result,
an important measure of coupon redemption is the level of previous sales (Taylor G. , 2001).
Another research work developed an understanding of shelf prices’ relationship with the coupons
offered by the manufacturer. Price discrimination theory was defined in detail where the result
showed that coupon induces repurchase of the product and it has a positive impact on current
sales (Nevo & Wolfram,, 2002).
2.1.3 Free Samples
A free sample is used to attract new customers for newly launched products in the market.
The free samples can either be distributed at public forums or can be delivered to the doorstep
of the target market. Through free samples, the marketers make their target market
taste/experience their product for free so that they can buy it later on. Such samples are
distributed in the market when there is already an established competing brand, or the product is
entirely new for the projected consumers (Clow & Baack, 2007).
This free sample method is also adopted to spread awareness about the new product in
the market and get your brand to familiarize with the customers (Ahmad, et al., 2015). A free
trial product is given to a customer via retailers and putting a stall in any event or mall. It shows
a positive impact on sales of a commodity. The free trial commodity is the running activity and
very costly to operate in the market for launching innovative commodities and encourages
purchases on the existing product. Free sampling is effective in places where the product has
superior benefits because people usually afraid to try new things by taking money risk (Abdi,
2015).
2.1.4 Buy one get one
Buy one get one free is a sales campaign tool that has been used for long. It is especially
helpful in clearing the stock and promoting the product at that same time. The advertising
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campaign of buy one get one free is to grab instant attention as the customer is getting double
the quantity on single item price.
It is a tool of promotion in which additional product is provided at a usual price with the
existing one but with some exciting packaging to attract the customers (Abdi, 2015) and (Ahmad,
et al., 2015) said in their papers that many customers get attracted with this offer because they
do not have to pay the amount of the additional one and consider the offer as a bonus pack.
2.1.5 Price Discounts
One of the sales promotions, price discounts, is used by the retailers to increase the
buying pattern of the consumers. It defines a huge potential for sales increment. It is the most
known tool for offering discounts on the product price and is usually mentioned on the product
or displaying in the retailer’s shops and stores.
2.1.6 Consumer buying behavior
Consumers usually do endless searches to find the product or service which suits best to
their requirements to satisfy the desired. Motivation, attitude, behavior, and thinking of one is of
great importance here in making purchase decisions. It’s also necessary to consider one’s social
class, his/her family or background, wealth or income, education, and occupation also
contributing to decide the buying behavior of one (Ahmad, et al., 2015).
It is emphasized that consumer behavior is the whole process that involves searching,
analyzing, evaluating, and looking for the comparative alternate available commodity to bridge
the gap of need to the satisfaction. It is also critical to focus on the fact that how one decides
what, why, when, where, how often to buy and how frequently to use the product or service, how
one evaluates the product or service after purchasing and it’s the effect on the future buying
behavior and how one disposes of the product or service. Another important thing to analyze
how people perceive sales promotions and how much it has an impact on their choices and
decisions. For the successful marketing purpose, it is very important to take a deep dive while
knowing consumer behavior (Abdi, 2015),
The different marketing campaign is designed to have a favorable impact on consumer

buying behavior. However, they also diverted the attention towards the fact that different stages
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of the lifecycle of consumers affect their buying behavior. Consumers' background, their
societies, surrounding environment, education, occupation, social status, income level also affect
the results of buying behavior or pattern. He explained in the study that sales activity has a long-
lasting impact on the business (Ahmad, et al., 2015).
The favorable approach of the shopper has been observed and their buying behavior to
the sales. Promotions tools are proved to be supplementary or complementary as a marketing
tactic for any business. He recommended that the marketers should be well aware of consumer
behaviors to offer and use the right promotional tools and maintain a balance in using these
strategies because too many sales promotions may cause damage to brand equity. Further, it’s
also very important to ensure the availability of products or services to the consumers till the
defined duration of offering to avoid any dissatisfaction of customers which can also result in
reputation damages to the brand image (Abdi, 2015).
2.2 Conceptual Framework

We adopted a conceptual framework presented below that conceptualize consumer
buying behavior as dependent variable and sales promotion tools such as coupons, free sample,
buy one get one free and price discount as the independent variable (Ahmad, et al., 2015).
Independent
Variable
Buy one get Price
one free discount
Coupon Free Sample

Consumer
Buying Dependent
Behavior
Variable
Figure 2.1
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Chapter 3: Methodology
3.1 Introduction
In this chapter, we discuss the method based on which we would reach towards the main
purpose of this research work. The methodology includes research design, variable, inclusion
criteria, sample and sampling technique, and statistical technique employed in this study.
3.2 Research Design

For this research, we collected the primary source of information by floating survey form
to the respondents. The data for the research sample for this research comprises people from
across different professions, classes, varying ages, and a different gender. However, a common
factor was the sample for this research was people residing in Karachi. We used a Likert scale
on the developed questionnaire to evaluate the result on the scale and to interpret the degree of
measurement on the scale. We used a 1 to 5 Likert scale, where 5 showed the highest level of
agreement, and 1 showed the lowest degree of agreement. Upon receiving 255 responses we
withheld the questionnaire and started analyzing the collected data.
We designed this study to develop an understanding of the sales impact on consumers

but the sole purpose of the research is for academic understanding to clarify the educational
encounters alongside furnishing them with implications. It helps with acquiring the experiences,
assessment of the extravagance, and profundity. The configuration gives help with utilizing the
inferential just as the spellbinding measurements in qualitative research. It is viewed as the best
strategy for the finish of the outcomes and demonstrating and discrediting the theory.
This research configuration has been found to give help with the examination of the
exploration issue by considering various advantages. The main thought of the blended research
configuration is the use of the quantitative just as the subjective plan to give a good
comprehension of the issue in the examination (Morse, 2016).
3.3 Variables
The variables in the questionnaire were as follows:
3.2.1 Independent Variable

 Coupons
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 Free sample
 Buy one get one free
 Price Discount
3.2.2 Dependent Variable

 Consumer Buying Behavior
3.4 Inclusion Criteria

The object of the study was to get an insight on shopper procuring attitude in terms of
sales promotion tools and with special reference to coupons, free samples, buy one get one free
and price discount. Hence, the inclusion criteria are those consumers who offered sales
promotion techniques and used these tools namely, price discount, buy one get one free, free
sample and coupons, and to evaluate their experience.
3.5 Data Collection

The instrument of collecting data for our study was a questionnaire. The survey form was
floated and the primary source of information was collected based on the Likert Scale. We used
online Google form and people responded to this.
The questionnaire was based on 3 parts. The first part of the questionnaire was a
disclaimer. That states: “We are MBA students of Institute of Business Management, Karachi,
and researching for academic purpose. Your personal information will be kept confidential.” The
second part was to gather demographic data of the respondent. In which age group, qualification,
and marital status of the respondent were inquired by giving options to select.
Then we have the third part of the questionnaire where respondents had different questions of
independent and dependent variables construct form and divided into items. Independent was
divided into 8 items and dependent was dividend onto 10 items to be answered to receive good
and accurate results for analysis. The questionnaire is attached as appendix A for reference.
3.6 Sample and Sampling Technique

For this research, a convenient sampling technique was used. Because of to lockdown
situation due to COVID-19 pandemic and time restraint we decided to float and online
questionnaire among our social circle to gather the required responses. The respondents were
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students and employed professionals from 18 to 35 years of age. We have used a convenience
sample technique and was sent to 300 and received a response from 255 respondents.
3.7 Statistical Technique

Firstly, we used Cronbach’s Alpha to check its reliability and to find the internal items’
uniformity having reliability cutoff at 0.6. After that correlations, it was utilized to know the
nature of the dependent and independent relationship and statistical significance variables.
Linear regression was used for this analysis.
3.8 Ethical Consideration
In keeping of view the ethical aspect, the survey was made on the significant pieces of
the finding. (Bilimoria, Chung, & Hedges, 2019) The most important moral phenomena
concerning the examination are that it incorporates the knowledgeable assent of the study
members. Also, it has been related to the members' privileges to give assurance to their secret
data. In this exploration, any inquiry which uncovers the private data of the members has not
been incorporated. The short clarification of research has been offered to the study respondents
to search for their assent before offering the poll overviews to them to be filled. For maintaining
a strategic distance from the disclosure of the proof for the examination, the joint effort of the
partner was transparent. The members were offered the option to draw from the exploration
whenever period. The worry of literary theft has additionally been contemplated inside this
exploration by the arrangement of credits to the investigation creators associated with this
examination. To this exact in-content references have been given along with the total reference
rundown to convey subtleties to the individual who peruses to consider. Alongside this
methodology, the examination has been remembered for its wording to get away from the issue
identified along with the unfortunate behavior and copyright infringement.
3.9 Reliability and Validity
As indicated by Noble and Smith (2015), the unwavering quality is viewed as the degree
to which the comparable outcomes are accomplished by the usage of the comparative
methodological device on various occasions. It tends to be said that if the examination has
expanded unwavering quality, different inquires about that are comparable should likewise
accomplish similar outcomes by the usage of the comparable research technique in comparative
circumstances. Legitimacy inside the exploration has been viewed as the degree to which the
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prerequisites of the examination approach are been met inside the span of the formation of the
aftereffects of the exploration. Concerning examining, it is ensured that the unwavering quality
and legitimacy are kept up by the choice of the strategy which is best appropriate for the
examination point components for meeting the predictable connection. Also, it has likewise been
guaranteed that the reactions are not compelled to choose a specific reaction for the fulfillment
of the fair-minded and legitimate outcomes.
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Chapter 4: Data Analysis and Interpretation
This chapter describes the research and its presentation through gathered data and its
interpretation. To look for the best-fit equation for our model, this chapter covers the
demographic profile and analysis of reliability, variables correlation, and regression. Data
analysis is the process of systematically explaining, identifying, summarizing, evaluating, and
analyzing the data by applying logical or statistical concepts.
There are several analytical tools to extract the information from data and distinguish it
from the business. However, two of them are more acceptable among the researcher fraternity.
They are qualitative analysis and quantitative analysis respectively. The quantitative analysis
analyzes data and provides its interpretation, understanding, and explanation (Chambers, 2017).
Also, the quantitative data analysis uses logic and rationale to turn the numeric values into
substantial and understandable results. In this research, we have used collected data as primary
data. The responses were taken on a questionnaire that was floated via google forms online. The
responses collected were then used for data analysis. The responses collected via google form
were evaluated using quantitative analysis by carrying out descriptive statistics on Microsoft
Excel. The data is also represented through charts that would present the indicate the participant's
answer.
4.1 Demographics
Demographic Profile Frequency Percentage
18 - 25 113 44.3
26 – 30 96 37.6
Age 31 - 35 29 11.4
36 - 40 6 2.4
Above 40 11 4.3
Matric/ O level 12 4.7
Intermediate/ A Level 18 7.1
Education Bachelors 104 40.8
Masters 93 36.5
M Phil/Ph.D. 28 11.0
Marital Status Single 197 77.3
Married 58 22.7
Table 1
The data has been collected from different residents of Karachi. 255 total respondents
filled in the questionnaire. We made the demographic profile of the respondents to his research.
Table 1 shows the general information about the respondents i.e. their marital status, age, and
education level.
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Age
2% 4%
12%
44%
38%
18 - 25 26 - 30 31 - 35 36 - 40 Above 40
Figure 4.1
It has been shown from Figure 2 that 44% of the respondents are of age group 18 – 25,
38% belong to age group 26 – 30, 12% are from 31 – 35 followed by 4% Above 40 and 2% from
age group 36 – 40.
Education
11% 5% 7%
36%
41%
Matric/ O Level Intermediate/ A Level Bachelors

Masters M Phil/ Ph. D.
Figure 4.2
Figure 3 represents that 41% of the respondents have a bachelor’s degree, 36% have done
a master's, 11% have M Phil or Ph. D. degree, 7% are at Intermediate level while 5% are those
who have done matriculation only.
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Marital Status
27%
73%
Single Married
Figure 4.3
Figure 4 represents the marital status of the respondents. Looking at the graph we can see
that 73% of the respondents to this research are single. Whereas, the remaining 27% are married.
This indicates that the majority of the population of this research is ‘Single’.
4.2 Reliability Analysis

Serial No. Construct Cronbach’s No. of items
Alpha
1 Price Discount 0.778 8
2 Coupon 0.875 8
3 Free Sample 0.857 8
4 Buy one get one free 0.892 8
5 Consumer Buying Behavior 0.792 10
Table 2
We have done Cronbach's alpha test for each variable which is a tool that is used for
measuring the reliability of the scale. The above table shows the Cronbach's alpha value for each
variable. Since the cut off for Cronbach's alpha is 0.7 (Lance, 2006), reliability statistics from
the data collected for our study results in value for each variable in the range of 0.778 – 0.892.
This means the questionnaire is reliable.
4.3 Descriptive Analysis
N Minimum Maximum Mean Std. Deviation

Price Discount 255 1.00 5.00 3.3755 .77370
Coupon 255 1.00 5.00 2.9187 .92472
Free Sample 255 1.00 5.00 3.1422 .889300
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Buy1Get1 255 1.00 5.00 3.4064 .92749

Table 3
Table 3 shows a summary of the data collected for our study of the impact of sales
promotion on consumer buying behavior. The data demonstrates that the people who prefer Price
discount as a sales promotional tool has given a mean score of 3.37. Coupon has a mean score
of 2.91. A free sample has a mean score of 3.14 while Buy one Get one has a mean score of 3.40.
The findings imply that most people like Buy one Get one offer as a sales promotional tool.
Considering and applying these factors in marketing strategies are likely to boost up the
attraction of consumers and influencing positive buying behavior.
4.4 Inferential Analysis

4.4.1 Correlation
Correlations
Consumer
Buying Price Free Buy1
Behavior Discount Coupon Sample Get1
Consumer Pearson Correlation 1 .510** .438** .538** .551**
Buying Sig. (2-tailed) .000 .000 .000 .000
Behavior N 255 255 255 255 255
** ** **
Price Pearson Correlation .510 1 .531 .573 .619**
Discount Sig. (2-tailed) .000 .000 .000 .000
N 255 255 255 255 255
Coupon Pearson Correlation .438** .531** 1 .600** .515**
Sig. (2-tailed) .000 .000 .000 .000
N 255 255 255 255 255
** ** **
Free Pearson Correlation .538 .573 .600 1 .662**
Sample Sig. (2-tailed) .000 .000 .000 .000
N 255 255 255 255 255
** ** ** **
Buy1 Pearson Correlation .551 .619 .515 .662 1
Get1 Sig. (2-tailed) .000 .000 .000 .000
N 255 255 255 255 255
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4
Correlation analysis shows that the variable is correlated. The above-stated Table 4
shows the correlation analysis of the variables. From the table, it can be deduced that all the
variables are positively related to each other. It can also be concluded that all the independent
variable that are the price discount, coupon discount, free sample, and buy one get one free are
Page | 21
very much correlated with the dependent variable that is consumer buying behavior as the sig
value is less than 0.05 as represented in the above table.
4.4.2 Regression Analysis
To know the value of the coefficients for independent variables that how much these
values have an impact on the dependent variable, regression analysis has been applied to the
collected data. The backward regression method has been used here to get the significant
independent variables to determine the best-fit equation for our model. After, applying the
Regression test, one of our independent variables i.e. Coupon seems insignificant (as shown in
Appendix ‘B’) and it has been taken out from the calculation.
Model Summary
Model R R Square Adjusted R Square Std. The error of the Estimate
.618b .382 .374 .53004

b. Predictors: (Constant), Buy1Get1, Price_Discount, free sample
Table 5
The above table depicts the model summary of the data. The value of R is 0.618 i.e.
61.8% which shows that correlation between variables. The coefficient of determination R
square shows the goodness of fit of the model which is 0.382 in our case. This determines that
changes in sales promotion tools (i.e. Price Discount, Free Sample, Buy one Get one) dictates
38.2% changes in Consumer Buying Behavior. Further, there is a 2% difference between R
square and Adjusted R square which shows an adequate sample size has been taken.
ANOVA
Model Sum of Squares df Mean Square F Sig.
2 Regression 43.519 3 14.506 51.634 .000c
Residual 70.517 251 .281
Total 114.036 254
a. Dependent Variable: Consumer_Buying_Behavior

c. Predictors: (Constant), Buy1Get1, Price_Discount, free sample
Table 6
The above table i.e. the ANOVA table gives information about the overall significance
of the model. The cut-off value for F-test is 4. However, in the above table, it shows as 51.634.
Further, the sig value is also less than 0.05. This concluded that the overall model is significant.
Page | 22
Coefficients
Unstandardized Coefficients Standardized Coefficients Collinearity Statistics

Model B Std. Error Beta t Sig. Tolerance VIF
2 (Constant) 1.823 .157 11.646 .000
Price_Discount .180 .057 .208 3.159 .002 .570 1.755
FreeSample .187 .052 .248 3.603 .000 .518 1.930
Buy1Get1 .186 .052 .258 3.585 .000 .476 2.099
Table 7
The above Coefficient, the table illustrates the significance of each independent variable
in determining the dependent variable. As stated above, a coupon is insignificant and has been
removed from the analysis. While the unstandardized coefficients for the remaining independent
variables show the relationship and magnitude of impact on the dependent variable. The positive
value shows that there is a positive effect of independent variables on the dependent variable.
The sig value is less than 0.05 that shows that all variables are significant. Furthermore, the VIF
value is less than 10 which determines that there is no multicollinearity i.e. no significant
association among the independent variables.
This table also facilitates in formulating the regression equation which is:
Y = b0 + b1X1 + b2X2 + b3X3
Where,
Y= Consumer buying behavior.
X1 = Price Discount
X2 = Free Sample
X3 = Buy one get one free
With the help of regression analysis, the equation for our study i.e. Impact of Sales Promotions
on Consumer Buying Behavior becomes:
Y = 1.823 + 0.180X1 + 0.187X2 + 0.186X3
Page | 23
4.5 Hypotheses Assessment Summary

Table 8: (Hypotheses Summary)
Hypotheses Statement Sig. Value Decision
H1 There is no significant impact of price discounts on .002 Reject
consumer buying behavior.
H3 There is no significant impact on the free sample on .000 Reject
H4 There is no significant impact of buy one get one free on .000 Reject
The independent variable of H2 (There is no significant impact of a coupon on consumer

buying behavior) was found insignificant therefore it has been omitted from the analysis.
However, the remaining null hypotheses are rejected as their sig value is less than 0.05, which
means free samples, price discounts and buy one get one free offer to have a significant impact
on consumer buying behavior that is our dependent variable.
4.6 Discussion
The study has been conducted based on data gathered through an online floated
questionnaire. The goal of the study is to find the appropriate sales promotion tool which can
help marketers and retailers in formulating strategies to enhance their sales by drawing the
attention of consumer on the product/service and also identifying the promotional tools that have
a positive impact on consumer buying behavior. In this study, four promotional tools were
considered. They are free samples, coupons buying get one free and price discount, respectively.
The impact of these stated promotional tools has been analyzed concerning consumer buying
behavior.
The study analyzed the pivotal aspect of consumer buying behavior on different sales
promotional tools which are critical for marketers and retailers to have information about, So,
that they can deploy appropriate marketing strategies to promote their product and services. The
results of this research show that there exists a positive relationship between price discounts and
consumer buying behavior. The result represents that the price discount has a significant
relationship with consumer buying behavior as (t = 3.159, p= 0.002). Free Sample also has a
strong significant relationship with consumer buying behavior as (t = 3.603, p= 0.000) and Buy-
One-Get-One also has a strong relation with consumer buying behavior (t = 3.585, p= 0.000).
However, one of the independent variables that are the coupon does not have a significant
relationship with consumer buying behavior as (t = 1.222, p= 0.223).
Page | 24
According to the literature review of this study which has been done for this study,
different results are influencing by other factors, but, in most cases, all the four promotional tools
have a positive impact on consumer buying behavior. However, the subject research revealed
that coupon does not have a positive impact on consumer purchase intention at a 5% significance
level. It can be concluded that coupon is not a strong determining factor or strategy to be
considered by marketers or retailers to boost their product sales. One of the reasons for this result
may be because the coupon is not that familiar among the people/respondents of our research or
another fact can be that marketers or retailers are not using a coupon as the marketing tactics for
the promotion of their products that much in Pakistan.
The results of this study illustrate that Price discounts on a product or service attract
customer attention to product buying. This technique of sales promotion is widely used in
Pakistan by marketers or retailers to boost up the sales of their products and services. The study
supports this marketing strategy as customers usually attract with low prices of any product and
find it easy to try a new product or buy a product which they are not in that much need. Price
discount gets the attention of the customer and can easily result in a short term increases in sales
for marketers and retailers.
The study further reveals that Buy-One-Get-One also has a strong relationship with
consumer buying behavior. It has also been proved from the literature review that this sale
promotional technique attracts customers instantly because they do not think too much to buy
one against the offer that they can get another one free with that. Results from our data gathered
for the subject research also supported.
In addition to the buy-one-get-one offer, the free sample also plays an important role for
marketers or retailers. They can consider them a vital sales promotion tool to increase their sales
and make a good impact on their business. Especially, when they are going to launch some new
products. People do not hesitate and are keener to try new products when they are getting it free
and they do not need to pay any prices for it too. This tactic can be used by marketers or retailers
to create new product awareness in the market and introduce their brand within the customers.
Regarding the market research which has been done under the study title i.e. Impact of
Sales Promotion Tools on Consumer Buying Behavior, different sales promotional tools, and
their impact on purchase intention of the Customer. Our results are mostly familiar with previous
studies. However, other factors such as the background of respondents, their social status, and
Page | 25
educational level also have an impact on research results (Ahmad, et al., 2015). He mentioned
in his paper that different sales promotions have an impact on consumer buying behavior.
However, different stages of the lifecycle of consumers, their social, economic, and educational
backgrounds are also influenced by their buying behavior. It has been further revealed with the
previous studies and the research conducted under this report title that sales promotions not only
increase sales and provide short term benefits, but these marketing strategies can also be viable
for marketers or retailers to take into considerations for long term benefits of their businesses.
Page | 26
Chapter 5: Conclusion, Limitations & Recommendation
5.1 Conclusion
This study aims to analyze the impact of sales promotion tools on consumer buying
behavior with the demographic boundary of a metropole city of Pakistan that is Karachi. We
have identified independent variables like a free sample, price discount, coupon, and buy one get
one free impact on the dependent variable that is buying behavior. To address the purpose of this
research, we adopted a framework of four factors from the literature review. We studied several
research papers to check our reliability of reports on valid information. The study aimed to test
the hypotheses and to produce a support relationship concerning independent variables with
dependent variables. Our finding revealed that there is a significant relationship between free
samples, price discounts, and buy one get one free offer with consumer buying behavior. These
variables significantly impact the buying behavior of customers. It also revealed that there is no
significant relationship of coupons with the buying behavior of the consumer. Our study
concludes that among the analyzed promotional tools only coupon sales promotion tool does not
influence customers to purchase any product or service on sale.
5.2 Limitations
This research is based on a convenience sampling technique and we did not target
any industry in conducting this research work, the result might be different if the specific industry
would have been chosen. We studied only four factors that may influence buying behavior
according to the literature review of this research, there are other sales promotion tools for
example premium, customers’ contest, cash refund offer for the limited period, and buyback
allowances (time-bound). Further, 255 respondents are anticipated in this study where the
respondent was of homogenous age bracket i.e. 18-15 years of age. Different age group
represents different result as per their life cycle.
Moreover while conducting this research, COVID-19 hit the economy. This pandemic has
brought a negative impact on economic globally. We were in lockdown situation in Karachi, due
to this purchasing power is adversely affected. Upper middle class tend to buy more from online
shopping and are availing discount offers from the sale and on the other hand, few individuals
have lost their job in cost optimization performed by different organizations.
Page | 27
5.3 Recommendation
Although this research has taken effective measures to address and identify limitations
based on factors that influence the buying behavior of the sales promotion tool and sample
technique. Based on our research work, we would recommend working on other sales
promotional factors as well which influence the buying behavior of customers including cash
refund offer for the limited period and buyback allowances (time-bound), and customers’
contest. Different sample technique influences the result, our society in Karachi is divided into
two classes i.e. upper class and middle class who avail these types of sales promotion offers
during buying a different product, the revised sample may produce different results. Social media
has a significant influence on the buying behavior of customers, which shows platform/location
plays a vital role in any sales promotional activities to attract customers. The right time to offer
any discount or promoting ant product or services which can have an impact on buying decision
of a prospective customer. That we can say as an example, during Ramadan month, Muslims
tend to avail discount offers more in Karachi. Therefore, the specific time and location of sales
promotion can be studied further to get more accurate data on consumer buying behavior.
Page | 28
References
Abdi, A. S. (2015). SALES PROMOTION TOOLS ON CONSUMER BUYING. Malaysia: Faculty

Of Business Administration.
Ahmad, S. A., Mehmood, W., Ahmed, S. A., Mustafa, M., Khan, M. F., & Yasmeen, M. (2015).
Impact of Sales Promotion on consumer buying. International Interdisciplinary Journal
of Scholarly Research (IIJSR), 14-19.
Bilimoria, K., Chung, J., & Hedges, L. (2019). External validity is also an ethical consideration
in cluster-randomized trials of policy changes. . BMJ quality & safety, 28(2), 167.
Brassington, & Pettitt. (2000). Sales Promotion In: Principles of Marketing. FT Prentice Hall:
Harlow.
Chambers, J. (2017). Graphical methods for data analysis. Chapman and Hall/CRC.
Creswell, J., & Creswell, J. (2017). Research design: Qualitative, quantitative, and mixed
methods approaches. Sage publications.
Creswell, J., & Poth, C. (2017). Qualitative inquiry and research design: Choosing among five
approaches. . Sage publications.
Fidalgo-Blanco, Á., Sein-Echaluce, M., & García-Peñalvo, F. (2015). Methodological Approach
and Technological Framework to break the current limitations of MOOC model. Journal
of Universal Computer Science, 21(5), .712-734.
Gilbert, D. (1999). Retail Marketing Management. Harlow: Prentice Hall.
Gilbert, D. (2002). The efficacy of sales promotions in UK supermarkets: A consumer view.
International Journal of Retail & Distribution Management, 315-322.
Hamada, M., & Ryan, K. (2016). Combined analysis of overlapping stratified random sample
and simple random sample data. Quality and Reliability Engineering International,
32(1), 309-314.
Morse, J. (2016). Mixed method design: Principles and procedures. Routledge.
msankldnm. (2006). as,. f;lwemf, a50-55.
Nevo, & Wolfram,. (2002). Why Do Manufacturers Issue Coupons? An Empirical Analysis of.
Rand Journal of Economics, 33(2), 319-339.
Nudubisi, N. O., & Tung, M. C. (2005). Customers behaviourial responses to sales promotion:
the role of fear of losing face. Asia Pacific Journal of Marketing and Logistics, 32-49.
Raghubir, P. (1998). Coupon Value: A Signal for Price? Journal of Marketing Research,
XXXV(35), 316-324.
Shallu , & Gupta , S. (2013). Impact of Promotional Activities on Consumer Buying Behavior:
A Study of Cosmetic Industry. International Journal of Commerce, Business and
Management (IJCBM).
Taylor, G. (2001). Coupon Response in Services. Journal of Retailing, 1(77), 139-151.
Taylor, S., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A
guidebook and resource. . John Wiley & Sons.
Wathieu, L., & Murre, J. (2007). Price as a Stimulus to Think: The Case of Willful. Marketing
Science, 118-129.
Page | 29
Appendices
Appendix A: Questionnaire
Page | 30
Appendix B: SPSS Output Data

Reliability
Price Discount
Reliability Statistics
Cronbach's
Alpha N of Items
.778 8
Coupon
Cronbach's
Alpha N of Items
.875 8
Free Sample
Cronbach's
Alpha N of Items
.857 8
Buy one get one Free
Cronbach's
Alpha N of Items
.892 8
Consumer Buying Behavior
Cronbach's
Alpha N of Items
.792 10
Frequencies
Frequency Table
Page | 31
Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 18 - 25 113 44.3 44.3 44.3
26 - 30 96 37.6 37.6 82.0
31 - 35 29 11.4 11.4 93.3
36 - 40 6 2.4 2.4 95.7
Above 40 11 4.3 4.3 100.0
Total 255 100.0 100.0
Education
Cumulative
Valid Matric/ O Level 12 4.7 4.7 4.7
Intermediate/A Level 18 7.1 7.1 11.8
Bachelors 104 40.8 40.8 52.5
Masters 93 36.5 36.5 89.0
MPhil/Ph.D 28 11.0 11.0 100.0
Total 255 100.0 100.0
MaritalStatus
Cumulative
Valid Single 197 77.3 77.3 77.3
Married 58 22.7 22.7 100.0
Total 255 100.0 100.0
Descriptives
Descriptive Statistics
N Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Std. Error Statistic
Price_Discount 255 3.3755 .77370 -.572 .153 .650
Coupon 255 2.9187 .92472 .007 .153 -.533
Page | 32
FreeSample 255 3.1422 .88930 -.075 .153 -.203

Buy1Get1 255 3.4064 .92749 -.362 .153 -.146
Consumer_Buying_Behavio
255 3.6525 .67004 -.571 .153 1.562
r
Valid N (listwise) 255
Descriptive Statistics
Kurtosis
Std. Error
Price_Discount .304
Coupon .304
FreeSample .304
Buy1Get1 .304
Consumer_Buying_Behavior .304
Valid N (listwise)
Correlations
Correlations
Consumer_Buyi
ng_Behavior Price_Discount Coupon
**
Consumer_Buying_Behavio Pearson Correlation 1 .510 .438**
r Sig. (2-tailed) .000 .000
N 255 255 255
Price_Discount Pearson Correlation .510** 1 .531**
Sig. (2-tailed) .000 .000
N 255 255 255
** **
Coupon Pearson Correlation .438 .531 1
Sig. (2-tailed) .000 .000
N 255 255 255
** **
FreeSample Pearson Correlation .538 .573 .600**
Page | 33
Sig. (2-tailed) .000 .000 .000

N 255 255 255
** **
Buy1Get1 Pearson Correlation .551 .619 .515**
Sig. (2-tailed) .000 .000 .000
N 255 255 255
Correlations
FreeSample Buy1Get1
Consumer_Buying_Behavior Pearson Correlation .538** .551**
Sig. (2-tailed) .000 .000
N 255 255
**
Price_Discount Pearson Correlation .573 .619**
Sig. (2-tailed) .000 .000
N 255 255
**
Coupon Pearson Correlation .600 .515**
Sig. (2-tailed) .000 .000
N 255 255
FreeSample Pearson Correlation 1 .662**
Sig. (2-tailed) .000
N 255 255
**
Buy1Get1 Pearson Correlation .662 1
Sig. (2-tailed) .000
N 255 255
**. Correlation is significant at the 0.01 level (2-tailed).
Regression
Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Buy1Get1,
Coupon,
. Enter
Price_Discount,
FreeSampleb
2 Backward
(criterion:
. Coupon Probability of F-
to-remove >=
.100).
Page | 34

b. All requested variables entered.
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .621a .385 .375 .52952
b
2 .618 .382 .374 .53004
a. Predictors: (Constant), Buy1Get1, Coupon, Price_Discount,

FreeSample
b. Predictors: (Constant), Buy1Get1, Price_Discount, FreeSample
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 43.937 4 10.984 39.175 .000b
Residual 70.099 250 .280
Total 114.036 254
2 Regression 43.519 3 14.506 51.634 .000c
Residual 70.517 251 .281
Total 114.036 254

b. Predictors: (Constant), Buy1Get1, Coupon, Price_Discount, FreeSample
c. Predictors: (Constant), Buy1Get1, Price_Discount, FreeSample
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.805 .157 11.496 .000
Price_Discount .163 .058 .189 2.792 .006
Coupon .058 .047 .079 1.222 .223
Page | 35
FreeSample .164 .055 .217 2.961 .003

Buy1Get1 .180 .052 .249 3.455 .001
2 (Constant) 1.823 .157 11.646 .000
Price_Discount .180 .057 .208 3.159 .002
FreeSample .187 .052 .248 3.603 .000
Buy1Get1 .186 .052 .258 3.585 .000
Coefficientsa
Collinearity Statistics
Model Tolerance VIF
1 (Constant)
Price_Discount .539 1.855
Coupon .583 1.716
FreeSample .456 2.193
Buy1Get1 .472 2.119
2 (Constant)
Price_Discount .570 1.755
FreeSample .518 1.930
Buy1Get1 .476 2.099
Excluded Variablesa
Partial Collinearity Statistics

Model Beta In t Sig. Correlation Tolerance VIF
2 Coupon .079b 1.222 .223 .077 .583 1.716
Excluded Variablesa
Collinearity Statistics
Model Minimum Tolerance
2 Coupon .456

b. Predictors in the Model: (Constant), Buy1Get1, Price_Discount, FreeSample
Page | 36
Appendix C: Cronbach Alpha Reference
Page | 37
Page | 38
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Institute of Business Management

The Impact of Sales Promotion on

4.4.2 Regression Analysis ....................................................................................................... 22

1.1 Background of the study

1.3 Objective of the study

1.2 Scope of the study

1.4 Problem Statement

1.5 Research Question

Chapter 2: Literature Review

To stay alive, companies need to differentiate them in a competitive market by adopting

A coupon is a transaction instrument which is given to a consumer so that he can get a

2.1.3 Free Samples

2.1.4 Buy one get one

2.1.5 Price Discounts

2.1.6 Consumer buying behavior

The different marketing campaign is designed to have a favorable impact on consumer

2.2 Conceptual Framework

Coupon Free Sample

3.2 Research Design

We designed this study to develop an understanding of the sales impact on consumers

3.2.1 Independent Variable

3.2.2 Dependent Variable

3.4 Inclusion Criteria

3.5 Data Collection

3.6 Sample and Sampling Technique

3.7 Statistical Technique

3.8 Ethical Consideration

3.9 Reliability and Validity

Chapter 4: Data Analysis and Interpretation

Matric/ O Level Intermediate/ A Level Bachelors

4.2 Reliability Analysis

4.3 Descriptive Analysis

N Minimum Maximum Mean Std. Deviation

Buy1Get1 255 1.00 5.00 3.4064 .92749

4.4 Inferential Analysis

4.4.2 Regression Analysis

.618b .382 .374 .53004

a. Dependent Variable: Consumer_Buying_Behavior

Unstandardized Coefficients Standardized Coefficients Collinearity Statistics

a. Dependent Variable: Consumer_Buying_Behavior

Y = b0 + b1X1 + b2X2 + b3X3

Y = 1.823 + 0.180X1 + 0.187X2 + 0.186X3

4.5 Hypotheses Assessment Summary

The independent variable of H2 (There is no significant impact of a coupon on consumer

Chapter 5: Conclusion, Limitations & Recommendation

Abdi, A. S. (2015). SALES PROMOTION TOOLS ON CONSUMER BUYING. Malaysia: Faculty

Appendix B: SPSS Output Data

Buy one get one Free

Consumer Buying Behavior

FreeSample 255 3.1422 .88930 -.075 .153 -.203

Sig. (2-tailed) .000 .000 .000

**. Correlation is significant at the 0.01 level (2-tailed).

a. Dependent Variable: Consumer_Buying_Behavior

a. Predictors: (Constant), Buy1Get1, Coupon, Price_Discount,

a. Dependent Variable: Consumer_Buying_Behavior

FreeSample .164 .055 .217 2.961 .003

a. Dependent Variable: Consumer_Buying_Behavior

Partial Collinearity Statistics