Open Access
Subscription Access
Open Access
Subscription Access
The Effect of Sales Promotion on Brand Awareness and Brand Loyalty: Assessment of Walia Beer Brand Management Practices
Subscribe/Renew Journal
Sales promotions have become one of the preferred methods of marketing communication. However, there is a debate on whether sales promotion has a positive effect on brand awareness and brand loyalty. So, the purpose of this study was to examine the effect of sales promotion on brand awareness and brand loyalty; and the relationship between brand awareness and brand loyalty. The research employed explanatory research design to identify any causal links between sales promotion, and brand awareness and brand loyalty. Primary data were collected from a sample of 389 Walia beer consumers using convenient sampling technique; and data were collected using a five-point Likert-type scale, ranging from ‘strongly disagree’ (1) to ‘strongly agree’ (5). Data were entered into SPSS 20, and analysis of the measurement and structural models were made using AMOS 20. The findings revealed that sales promotion has a positive and significant effect on brand awareness and brand loyalty; and awareness has a positive effect on brand loyalty. This indicates that beyond its usual immediate impact on sales volume, sales promotion has an effect on branding.
Keywords
Brand Awareness, Brand Loyalty, Sales Promotional Activities
Subscription
Login to verify subscription
User
Font Size
Information
- Aaker, D. A. (1996). Building strong brands. New York: The Free Press, a Division of Simon & Schuster Inc.
- Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a brand name. Free Press, New York.
- Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3), 102-120.
- Agarwal, M. K., & Rao, V. R. (1996). An empirical comparison of consumer-based measures of brand equity. Marketing Letters, 7(3), 237-247.
- Alkhawaldeh, A., Al-Salaymeh, M., Alshare, F., & Eneiza, B. (2017). The effect of brand awareness on brand loyalty: Mediating role of brand commitment. European Journal of Business and Management, 9, 38-47.
- Allender, W., & Richards, T. (2012). Brand loyalty and price promotion strategies: An empirical analysis.Journal of Retailing, 88, 323-342. doi:10.1016/j.jretai.2012.01.001
- Alvárez-Alvárez, B., & Vázquez-Casielles, R. (2005).Consumer evaluations of sales promotion: The effect on brand choice. European Journal of Marketing, 39(1/2), 54-70. doi:10.1108/03090560510572016
- Anderson, J. C., & Gerbing, D. W. (1988). Some method for respecifying measurement model to obtain unidemensional construct measurement. Journal of Marketing Research, 19, 453-460.
- Arthur, R. (2016). Africa: The fastest growing beer market.Retrieved from www.beveragedaily.com/Article/ 2016/01/12Africa-The-fastest -growing- beer- market
- Atilgan, E., Aksoy, S., & Akinci, S. (2005). Determinants of the brand equity: A verification approach in the beverage industry in Turkey. Marketing Intelligence & Planning, 23(3), 237-248.
- Bagozzi, R. P., & Shahrokhi, M., (1998). The evaluation of structure equation models. Journal of Academy of Marketing Science.
- Barclay, S. (1994). E-service adoption: Process by firms in developing nations. Emerald Books, 23A.
- Bhattaherjee, A. (2012). Social science research: Principle, methods, and practices. University of South Florida.
- Blattberg, R. C., & Neslin, S. A. (1989). Sales promotion: The long and short of it. Marketing Letters, 1, 81-97.
- Bollen, K. A. (1989). Structure equations with latent variables. New York: John Wiley & Sons.
- Bridges, E., Briesch, R., & Yin, C. K. (2006). Effects of prior brand usage and promotion on consumer promotional response. Journal of Retailing, 82(4), 295307. doi:10.1016/j.jretai.2006.08.003
- Brown, T. A. (2006). Confirmatory factor analysis for applied research (methodology in the social sciences).Guildford Press.
- Browne, M., Cudeck, R., & Marsh, l. (1994). Single sample cross - Validation indices for covariance structures. Multivaration Behavior Research, 24, 445-455.
- Burmann, C., Jost-Benz, M., & Riley, N. (2009). Towards an identity-based brand equity model. Journal of Business Research, 62(3), 390-397.
- Byrne, B. M. (1998). Structural equation modeling with AMOS: Basic concepts, applications, and programming. Lawrence Erlbaum Assoc. Inc., New Jersey.
- Cambell, D. T., & Donald, W. (1995). Convergent and discriminate validation by the multitrait-multimethod matrix. Psychological Bulletin, 56(2), 81-105.
- Chandon, P., & Laurent, G. (1999). Hedonic and utilitarian consumer benefits of sales promotions. Marketing Science Institute Working Paper No. 99109. Cambridge, MA: Marketing Science Institute.
- Chandon, P. W., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness.
- Journal of Marketing, 64(October), 65-81.
- Clark, C. R., Doraszelski, U., & Draganska, M. (2009).The effect of advertising on brand awareness and perceived quality: An empirical investigation using panel data. Quantitative Marketing and Economics, 7(2), 207-236. doi:10.1007/s11129-009-9066-z
- Corbetta, P. (2003). Social science research: Theory, methods and techniques. SAGE Publications Ltd.
- Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017).How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?Journal of Marketing, 81(3), 1-20. doi:https://doi.org/10.1509/jm.15.0340
- DelVecchio, D., Henard, D. H., & Freling, T. H. (2006).The effect of sales promotion brand preference: A meta-analysis. Journal of Retailing, 82(3), 203-213.doi:10.1016/j.jretai. 2005.10.001
- Diamond, W. D. (1990). Schemas determining the incentive value of sales promotions. Psychology & Marketing, 7(3), 163-175. Retrieved from http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6793
- Ehrenberget, A. S. C., Hammond, K., & Goodhardt, G.J. (1994). The after-effects of price-related consumer promotions. Journal of Advertising Research, 34, 11-21.
- Gil, R. B., Andre’s, E. F., & Salinas, E. M. (2007). Family as a source of consumer-based brand equity. Journal of Product and Brand Management, 16(3), 188-199.
- Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis (7th ed.). Pearson Prentice Hall, Upper Saddle River, NJ.
- Hair, Jr. Anderson, R. L., Tatham, R. L., & Black, W.C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
- Hu, L. T., & Bentlet, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternative. Structure Equation Modeling, 6(1), 1-55.
- Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. International Series on Consumer Science, 113-132. doi:10.1007/978-1-4939-0277-4_8
- Huff, L., Alden, D., & Tietje, B. (1999). Managing the sales promotion Mix: Brand managers: Response to sales promotions. Journal of Promotion Management, 5(1), 77-89.
- Hughes, M. A., Price, R. L., & Marrs. (1986). Linking theory construction and theory testing: Models with multiple indicators of latent variables. Academy of Management Review, (11), 128-144.
- Hunt, K. A., & Keaveney, S. M. (1994). A process model of the effects of price promotions on brand image. Psychology & Marketing, 11(6), 511-532.
- Joseph, J., Sivakumaran, B., & Mathew, S.(2020). Does loyalty matter? Impact of brand loyalty and sales promotion on brand equity.Journal of Promotion Management, 26(4), 1-20. doi:10.1080/10496491.2020.1719
- Kapferer, J. N. (1991). Strategic brand management. New York and London: Kogan Page.
- Karbasi, B., & Rad, A. (2014). The effect of sales promotion characteristics on brand equity. Management Science Letters, 4(9), 2107-2116. doi:10.526/j.msl.2014.8.008
- Keller, K. L. (2001). Building customer-based brand equity. Marketing Management, 10(2), 14-19.
- Keller, K. L. (2003). Brand synthesis: The multi dimensional of brand knowledge. Journal of Consumer Research, 29(4), 595-600.
- Keller, K. L. (1992) Memory retrieval factors and advertising effectiveness. In Advertising Exposure, Memory and Choice. A. A. Mitchell ed. Hillsdale, NJ: Lawrence Erlbaum Associates, in press.
- Keller, K. L. (1993). Conceptualizing, measuring, and managing customer based brand equity. Journal of Marketing, 57(1), 1-22.
- Kim, W. G., & Kim, H. B. (2005). The relationship between brand equity and firms’ performance in luxury hotel and chain restaurants. Journal of Tourism Management, 26, 549-560.
- Kotler, P. (2003). Marketing research. New Jersey: Person Education.
- Kotler, P., & Keller, K. L. (2009). Marketing management. New Jersey: Upper Saddle River.
- Krishnan, H. S. (1996). Characteristics of memory associations: A consumer based brand equity perspective. International Journal of Research in Marketing, 13, 389-405.
- Lewise, B., Templeton, G., & Byrd, T. (2005). A methodology for construct development in MIS research. European Journal of Information Systems, 14, 388-400.
- Lidwell, W., Holden, K., & Butler, J. (2003). Universal principles of design. Rockport.
- Low, G. S., & Mohr, J. J. (2000). Advertising vs. sales promotion: A brand management perspective. The Journal of Product and Brand Management, 9(6), 389-411.
- McDonalds, R. P., & Ho, M. R. (2002). Principles and practice in reporting structural equation analyses.
- Psychological Methods, 7, 64-82.
- Mohammed, A., Denu, B., & Ensermu, M. (2014).Research methods: Research methodology module for post-graduate students. Addis Ababa, Office of distance education.
- Montaner, T., & Pina, J. M. (2008). The effect of promotion type and benefit congruency on brand image. Journal of Applied Business Research, 24(3), 15-28.
- Morrison, M., & Eastburn, M. (2006). A study of brand equity in a commodity market. Australasian Marketing Journal (AMJ), 14(1), 62-78.
- Na, W. B., Marshall, R., & Keller, K. L. (1999). Measuring brand power: Validating a model for optimising brand equity. The Journal of Product and Brand Management, 8(3), 170-184.
- Palazón-Vidal, M., & Delgado-Ballester, E. (2005). Sales promotions effects on consumer-based brand equity.International Journal of Market Research, 47(2), 179-204.
- Papatla, P., & Krishnamurthi, L. (1996). Measuring the dynamic effects of promotions on brand choice. Journal of Marketing Research, 33(1), 20-35.
- Pauwelset, K., Hanssens, D. M., & Siddarth, S. (2002).The long-term effects of price promotions on category incidence, brand choice, and purchase quantity. Journal of Marketing Research, 39, 421-439.
- Peckham, J. O. (1981). The wheel of marketing. A.C. Nielsen, New York, NY.
- Raut, U. R., Brito, P. Q., & Pawar, P. A. (2020).Analysis of brand resonance measures to access,dimensionality, reliability and validity. Global Business Review, 21(1), 162-175. doi:https://doi.
- org/10.1177/0972150919846964
- Salelam, G., & Singh, A. (2016). The impact of sales promotion on brand equity: The case of brewery industry. Journal of Marketing and Consumer Research, 22.
- Schumaker, R. E., & Lomaz, R. G. (1996). A beginner’s guide to structure equation modeling. Mahwah, NJ: Erlbum.
- Segars, A. H., & Grove, V. (1993). Re-examining perceived ease of use and usefulness, a confirmatory factor analysis. MIS Quarters, 17, 517-525.
- Simonson, I., Carmon, Z., & O’Curry, S. (1994). Experimental evidence on the negative effect of product features and sales promotions on brand choice. Marketing Science, 13(1), 23-40.
- Taylor, S., & Todd, P. (1995). An integrated model of waste management behavior: A test of household
- recycling and composting intentions. Environment and Behavior, (27), 603-630.
- Valette-Florence, P., Guizani, H., & Merunka, D. (2011). The impact of brand personality and sales promotions on brand equity. Journal of Business Research, 64(1), 24-28.
- Van Riel, A. C., Pahud de Mortanges, C., & Streukens, S.(2005). Marketing antecedents of industrial brand equity:An empirical investigation in specialty chemicals. Industrial Marketing Management, 34(8), 841-847.
- Villarejo-Ramos, A. F., & Rondan-Cataluña, F. J. (2005).The effects of marketing communication on brand equity a look into the market of lasting goods.
- Westberg, K., & Pope, N. (2012). Building brand equity with cause-related marketing: A comparison with sponsorship and sales promotion. Journal of Marketing Communications, 20(6), 419-437. doi:10.1080/135272 66.2012.723025
- Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2),195-211.
Abstract Views: 231
PDF Views: 0