Sales Promotion: Factors Influencing Brand Loyalty

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2.1 Sales Promotion Among the four different instruments of promotional mix, Sales Promotion is the most effective instrument because this is the only tool that aims at customers. It is the set of marketing activities that are especially designed to draw the attention of the customers to buy the product or service in short term context. The major sales promotion methods include- Premiums, Coupons, Discounts, Contest, Trade shows etc. The purpose lying behind sales promotion is to encourage the traders to expand their stock and the customers to spend more on the promotional brand (Freo, 2005). All these activities of sales promotion are basically designed so that it can increase sales which leads to the more customer purchase and which in turn…show more content…
It expresses the degree of belief and trust of customers to the particular brand. Usually when a customer makes decision to purchase a particular product repeatedly from the same company instead of a substitute product produced by a competitor, it is then defined as Brand Loyalty (Hamlin, Lindsay and Insch, 2012). Customers being loyal towards a brand specifically continue their purchase with the same brand regardless of price. For them, the particular brand stands for their faithfulness. Over time, brand loyalty helps in customer retention process. Therefore, companies usually design various effective loyalty programs and strategies to reinforce customers repeated purchase with the brand. 2.3 Factors Influencing Brand Loyalty Nowadays shaping and nurturing brand loyalty has become the most crucial issue in marketing concept and that too in very competitive marketing era. A great number of researches conducted on the same issue and found out that there are numerous factors that influence customers’ decision to go with a brand (Lovelock and Wirtz, 2004). According to the research outcome, there are several factors that play the most roles in affecting brand loyalty. These include- • Customer satisfaction with the…show more content…
Basically when a customer is prone to move to another brand instead of previously preferred brand, it is known as customers’ brand switching. There are various factors that influence a customer to switch to another brand (Hamlin, Lindsay and Insch, 2012). Better service, better quality, better features and better price provided by the other brand encourages the customers to go for other brand. Sales promotion in this case plays a crucial role. The sales promotion activities are designed to attract more customers to make purchase. All these activities are undertaken by the companies to draw the most attention of the customers. Therefore, customers are motivated to make a purchase from a different brand. Various sales promotion activities are there, but in case of brand switching the most effective sales promotion method include free gifts. Various researches have been conducted to explore the impact of sales promotion on brand choices, brand switching and brand loyalty and it has been found out that sales promotion has the most impact on brand switching rather than brand

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