Perception of Consumers on Impact of Sales Promotions on Firm Performance

Abstract

ABSTRACT Marketing strategy has been a focus of organizations and a tool for attaining overall firm performance. The purpose of this study was to investigate the perception of consumers on impact of sales promotions on company performance using consumers at Mataheko in the Ablekuma Central Municipal district of the Greater Accra Region of Ghana. Specifically the study sought to evaluate the impact of sales promotions strategies on patronage, establish the effect of sales promotion on consumer brand loyalty and identify the effect of consumer sales promotions on profit potential. Using the cognitive evaluation theory and marketing mix theory for the study, the Convenience sampling technique was used to gather data from a sample of 120 respondents in Mataheko, Ghana, using a structured questionnaire and data analysis carried out using SPSS version 21. Descriptive statistics were used to interpret the data. The findings showed a significant relationship between consumer perceptions of products on a firm’s performance in the market space. The study further revealed that consumer sales promotions such as free gifts at the point of sale to customers, discount prices and bonus packs influenced consumer perception and resulted in patronages. However, it was also noted that consumers were not loyal but only remained as regular buyers due to continual sales promotional activities of organisations. On the bases of these findings, the study recommends that management and retailers of consumer goods in Mataheko, focus on churning out consumer sales promotion as a marketing strategy to continue influencing consumers’ purchasing behaviour which will in turn lead to firm performance on the market. Also, the use of price discounts, extra pack (buy-one get-one-free) and coupons as types of sales promotion to influence consumers’ purchasing behaviour must be increased whilst focusing also on free sample and sweepstakes and contests. Keywords: Consumer perception, consumer goods customer loyalty, firms, sales promotion