Net-Based Promotions: Practices, Prospects and Challenges

Kureshi Sonal and Vyas Preeta

No WP2003-05-01, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: The dynamic technological advancement brought around increasing use of electronic communication. Net as a medium is endowed with unique characteristics that has assisted the growth of e-commerce and in turn increased use of net-based sales promotions. For this study net-based promotions are defined as those sales promotion offers which are announced on internet and are to be availed either/ or online/ off-line. The paper examines the characteristics, practices, prospects and risks of consumer sales promotions through this medium. To gain insight into current practices, consumer sales promotion on three different sites, general, specialised and e-commerce sites were studied. The most frequently promoted product categories across sites were apparel, phones, airlines, books, and watches. Price-off followed by free gift offer was the most commonly used type of net- based promotions. Managerial issues relating to product, design and communication are discussed.

Date: 2003-05-01
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