۱- Introduction

۲- Theoretical framework and hypotheses

۳- Methodology

۴- Results

۵- Discussion

۶- Implications, limitations and future research avenues

References

Abstract

This paper explores in-store sales promotion as a tool for manufacturers in developing in-store relationships with consumers. Our empirical application in the ice cream category examines the effects of sales promotions (non-monetary vs. monetary) on perceived brand expression. The results show that non-monetary promotions generate more relational benefits than price-based promotions. They appear to be a significant lever in developing relationships with consumers within the supermarket retail channel, where brands have no formal control over their distribution. Such sales promotions convey brand willingness to develop relationships during in-store encounters. This research identifies sales promotion programs as tools for influencing the consumer–brand relationship within the supermarket retail context.

Introduction

Supermarkets and hypermarkets are large self-service stores in which thousands of competing branded products are displayed to consumers. Competition is tough and the stakes are particularly high for manufacturers as the channel is very dense with a small number of retailers controlling most of the market.1 To stand out from rivals, brands must find ways to add value to their programs. Sales promotions are efficient tools for increasing sales, but as they are often based on price they can be considered detrimental to brand image (Buil et al., 2011; Yi and Yoo, 2011). Relational approaches have been suggested as bringing emotional and psychological value to brands. However mass retail outlets, which are standardized environments, allow limited possibilities in developing relational strategies. In stores, brand manufacturers have no direct contact with their consumers, except through the products themselves and their promotional offers. Consequently, implementing programs emphasizing relational benefits remains a challenge (Dewsnap and Hart, 2004; Gruen and Shah, 2000). This research investigates how manufacturer brands can use sales promotions to create informal control over the in-store purchase experience and develop customer-oriented offers. Previous research has shown that within stores, brands can keep a degree of control over consumer relationships through specific marketing tactics, including merchandising, category management, trade marketing and sales promotions (Aurier and Séré de Lanauze, 2011; Dewsnap and Hart, 2004). When managing their strategies with retailers, brands may send relational signals to indicate to consumers that the brand is making efforts to provide further benefits. In this regard, sales promotion is a relevant vehicle for direct messages targeting consumers. We posit that under some conditions, it helps consumers to perceive relational efforts and benefits provided by the brand. As such, sales promotions can be an interesting lever for developing consumer perceptions of in-store brand expression, which “covers the different nonproduct elements of the brand marketing expression addressed to the consumer during the in-store encounter” (Aurier and Séré de Lanauze, 2011, pp. 2–۳). Sales promotion is central in trade marketing programs, a core lever in negotiations with retail chains, and a large part of brands’ marketing budgets (Blattberg et al., 1995; Bogomolova et al., 2015). However, sales promotion comes in many forms. Most mechanisms are based on price reductions and price-based value creation. These have been repeatedly questioned in terms of their effects on brand image and consumer perceptions (Buil et al., 2011). Other promotional levers can be considered, specifically in the case of hedonic products that evoke a more emotional shopping focus, which may affect the decision process (Babin et al., 1994; Bell et al., 1991; Lam and Mukherjee, 2005).