A benefit congruency framework of sales promotion effectiveness

Are monetary savings the only explanation for consumer response to a sales promotion? If not, how do the different consumer benefits of a sales promot ion influence its effectiveness? To address the first question, this resear ch builds a framework of the multiple consumer benefits of a sales promotio n. Through a series of measurement studies, the authors find that monetary and nonmonetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value expression, entertainment, and e xploration) and three utilitarian benefits (savings, higher product quality , and improved shopping convenience). To address the second question, the a uthors develop a benefit congruency framework, which argues that a sales pr omotion's effectiveness is determined by the utilitarian or hedonic nature of the benefits it delivers and the congruence these benefits have with the promoted product. Among other results, two choice experiments show that, a s predicted for high-equity brands, monetary promotions are more effective for utilitarian products than for hedonic products. The authors then discus s the implications of the multibenefit and the benefit congruency framework s for understanding consumer responses to sales promotions, reexamining the value of everyday-low-price policies, and designing more effective sales p romotions.