Price promotions and their relation to consumer purchasing decisions

Abstract

In this paper, the relationship between price promotion and the consumer purchasing decisions to a sample of 258 participants, that bought durable goods at department stores in Mexico City, with and without price promotions, was studied. The methodology used for this research was the association analysis by contingency tables and the variance analysis. Both techniques were useful to identify the consumer profile who bought durable goods with a price promotion, finding that consumers sensitive to price, are those that purchase products under price promotion, moreover that women and low income population segments are the major buyers of products in promotion. Another finding was that the consumers purchasing products in promotion have a better knowledge and recall of the prices of the goods purchased.
The findings of this study could be applied for the retailer firms that sell durable goods, in order to be more effective with sells in promotion addressing the communication to the group of consumers sensitive to purchasing price promotions products and, in the other hand, the results of this research could be taken as a reference for future studies.