Basically in the long run the sales promotion is positive for top line performance but it is negative for bottom line performance and firm’s value. This proves the fact that impact of sales promotion on the value of the firm is not in the long run, but in the short run it has positive impact on the profitability of the firm. Consumer Promotion Consumer promotion is a category of sales promotion including free samples, wining contests, different price packs, and sweep stakes. Sales promotion is projected to increase the sales of final ultimate consumers of the product (Kotler and Armstrong, 2002).The kinds of sales promotion are based on some sort of benefit whereas some are very communicative in type (Kotler et al. 1999: Tellis 1998).
Primark’s products are branded as “Atmosphere” this unique selling point (USP) will distinguish there product from those of its competitors. This is beneficial as it implies that Primark can have a higher brand loyalty and recognition in which would give them the ability to charge a higher price in recognition of the unique feature. In addition, it can create a barrier to entry making it difficult for new business to compete. Price is another component within the marketing mix; this defines the amount of money that is paid for a good by the customer. Primark follows a pricing strategy in order to meet marketing objectives.
Premium Pricing: A premium quality product or a service can be used to set its value artificially high in an attempt to encourage a favorable audience perception, something that will be the USP (Unique Selling Proposition) of our setup. Later, if the services or products begin to establish a reputation for quality, this is a great pricing strategy to implement. 13. Price Leadership: A point at which the practice or business becomes self-sufficient to be able to dictate prices within the marketplace. As such, it is an ideal goal to aim for and will work best for businesses operating in industries where competition is scarce.
How well these expectations are met determines whether the consumer is satisfied or dissatisfied with purchase. Price often influences the level of expectations for a product or service. For marketers, an important element of any post purchase evaluation is reducing any doubts that the decision was sound. When purchasers recognize inconsistency between their values or opinions and their behaviour, they tend to feel an inner tension called cognitive dissonance. Consumers try to reduce dissonance by justifying their decision.
Purchase Intention is defined as “predisposition to buy a certain brand or product” (Belch & Belch, 2004, p. 120). Purchase Intention also indicates how likely it is that the individual would purchase a product (Phelps & Hoy, 1996). Previous studies examine the relationship of attitude with purchase intentions in specific dimensions, such as attitude towards advertiser (Lutz et al., 1983), attitude towards advertisement and attitude towards brand (MacKenzie et al., 1986; MacKenzie & Lutz, 1989). The current study focuses on the concept of attitude toward brand. Attitude toward brand has profound and important role in affecting consumer’s purchase intentions (Gresham & Shimp, 1985; Goldsmith et al., 2000).
Or the awards you may have received. For those of us who believe in the power of intangibles, this makes complete sense on reflection but it also contrasts with how we probably believe quality should work – or tell ourselves it does work. “Why can’t they see that our goods are better?” is a question I get asked a lot. Quality doesn’t speak for itself. It speaks to each consumer in their own particular way, and the authors quote David Aaker to explain why.
This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.
2.2.2. Value expression function The value expression function is defined as the tendency to buy and use brands to connect individual identities (beliefs, attitudes, and values) with others (Expression and Forresti, 2012; Wilcox, 2009). Acording to Wilcox et al. (2009), consumers who have earned the value expression function for a brand, trend to use it as a form of self-expression. Hence, this function is related to people trying to transfer their identity to others, even if they are not in line with the expectations of their peer group (Goral et al., 2004; Shawit, 1990; Wilcox et al., 2009).
Delaying the adaptation of a new purchase allows the buyer to be content and acquire more joy out of their purchase for a longer period of time. Diminishing marginal utility also factors into the consumer’s purchasing decisions. If buyers were to break up their pleasures and purchases “into a series of briefer experiences [they can] …offset diminishing marginal utility” (Dunn 13). Doing this allows buyers to experience more pleasure from their purchases, and essentially “get the biggest bang for their buck” by spreading out the pleasure of the product, maximizing happiness time. This ties in with the adaptation of new purchases, and
The core of TQM can be expressed as a simple principle: trying to meet customer needs and concerns. Because once the customer Evaluated as "high quality", the production of high quality goods or provide high-quality services business is likely to raise prices and expand market share. Price and market share increase and promote sales growth. Quality improvement also helps reduce goods or services return rates, reduced system cause, shorten the production cycle. Return rate of decline also guarantee costs and repair costs decrease and shorten the production cycle has accelerated.