Popular Online Promotion Strategies among Different Industries

Chin-Shan Wu, Yi-Ting Huang and Fei-Fei Cheng
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Chin-Shan Wu: Tunghai University, Taiwan
Yi-Ting Huang: National Chung Hsing University, Taiwan
Fei-Fei Cheng: National Chung Hsing University, Taiwan

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Abstract: Purpose: The objective of this study is to explore what types of sales promotions are frequently used by online stores from different industries. Design/methodology/approach: The content analysis were conducted based on the data collected from four industries : online music service provider, Internet bank, automobile website, and TV channels website. Online sales promotion activities from ten websites in each industry were collected, resulting in 40 websites to serve as sample website. An online sales promotion framework which includes ten popular sales promotion strategies was proposed based on previous studies to serve as the basis of content analysis. Findings: Contests and sweepstakes is the most popular online promotion strategy used by all the selected websites, followed by patronage awards, price-offs, and free gifts are also confirmed as the frequently used promotion strategies on the Internet. The results also revealed that, for music website, price-off is the most popular sales promotion strategies. Contest & sweepstakes and patronage awards are prevalent for Internet banks. In addition, product warranty is the most frequently used promotion strategy in automobile industry. Finally, contest & sweepstakes promotion is the only one that is frequently adopted by TV channel websites. Practical implications: The online promotion classification framework suggested in current study provided a reference for practitioners to understand the possible online sales promotion strategies to choose. Further, current study provides information regarding the popularities of online sales promotion across different industries. Thus, business owners can take the industrial characteristics into consideration when choosing the appropriate promotion strategies. Originality/value: As most previous studies mainly discussed different types of online sales promotion strategies, current study is one of the limited research that addressing the online promotion strategies used by different industries. The results indicated that different industries adopted different online promotions because of industries characteristics.

Date: 2013
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