The Influence Of Price Promotion On Customer Loyalty

Intense market competition makes more and more companies aware of the fact that brand enterprises in the market is not only the most important weapons in competition, but also one of the most valuable wealth. However, under the pressure of long-term shaping brand and short-term sales target, quite a few enterprises, even some well-known enterprises, have to adopt price reduction strategy to stimulate purchasing impulsion of consumer, and then to enhance sales in short term. It seems to be hardly balanced compromise between price reduction strategy and brand loyalty in theory.Previous researches report that price promotion is the most useful means to stimulate consumer impulsive buying in order to increase sales. From the systematic, procedural point of view, based on the reviews and analysis of domestic and overseas research, the study straighten out the process that the price promotion stimulate consumer to impulsive buy, thereby affecting its brand loyalty. Combining the process with my own understanding , this study provides a structural equation model for the chain of"price promotion—impulsive purchase-post-purchase evaluation-customer loyalty". After the pilot study and using SPSS15.0 to make exploratory factor analysis and confirmatory factor analysis, the study use LISREL8.70 to validate the structural equation model.This research chooses costume as commodity and female students of ChongQing University as sample, and asks responds to fill out every question in questionnaire that is related to the most impressive purchasing costume experiences happened in last two months. In order to surround every respond with scene set by questionnaire, every respond is required to make a brief background specification before beginning of questionnaire.The finding demonstrates that in the behaviour of purchasing impulsion caused by price reduction, the degree of price reduction and comments after purchasing, undoubtedly, take effect on consumer loyalty. Moreover, the degree of price reduction will also influence the degree of impulsion of consumers and comments after purchasing consequently.The research related to the influence on brand loyalty caused by price sales can, in the theory, enrich the research areas of price promotions and brand loyalty, and surely make contribution to the development of this theory.In practice, the enterprise could better understand the whole process that price promotion stimulates consumer impulse purchasing, affect their brand loyalty, clarify the important factors that affect consumer brand loyalty, and then develop the effective marketing strategies according to the conclusion of this research and its marketing enlightenment. Consequently, the enterprise could obtain some workable suggestions that taking price promotion measures could stimulate purchasing impulsion under the premise of maintaining or improving brand loyalty.