Research On Price Promotion Strategy Based On Consumer Perception

Sales promotion has always been an effective way to explore and defend market share for marketers. Due to increasingly fierce market competition, there comes the ever fierce promotion war beween different companies. Price promotion has been frequently used as the most effective weapon by a lot of companies to increase their sales in short term, while consumers become to put more emphersize on value rather than price itself. Under such circumstances, there is an urgent need for every marketers to improve the effectiveness of price promotion.Many researches show that consumers' behavior depends on their perceived quality and perceived value of the product. So it is very important to do the research from the benefit of the consumer, and this is also the content of the acticle. In this study the author constructed a consumer purchase intention model in the situation of sales promotion. The main contents of this paper are: the different effects between 2 promotion types(discount, free-gift) and 2 promotional benefit levels(25%, 50%); the relationship of Perceived Quality , Perceived Value,and Purchase Intention; and the impact integrated Sale proneness into our model.Our results showed that different consumer perceived quality and value differently when they came up with different sales promotion. The perceived quality and perceived value are the direct antecedents of consumer purchase intention. Sales promotion offer customers not only cost saving, but also value, so consumers' perceived value is much higher when the product is on sale. And we also found that higher sales promotion wil result in higher: (a) perceptions of quality, (b) perceptions of value,(c) purchaes intention.This articles's major contribution are listed as following: we discussed the purchase model from the cunsumer's value angle,and we integrated sale proneness factor into our model, this is a breakthrough in sales promotion domain in China. And we emperically tested our hypotheses and ended up with suggestions on promotion strategies and managerial advives based on the results of our study.