Point of Sales Promotions and Buying Stimulation in Retail Stores

Prof Rajagopal

No 2008-03-MKT, Marketing Working Papers from Tecnológico de Monterrey, Campus Ciudad de México

Abstract: This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and satisfaction among customer in building store loyalty have been discussed in the paper. This study also builds arguments around convergence of attractiveness of point of sales promotions and effectiveness of customer services as a tool for gaining competitive advantage in the retail business environment. The results indicate that point of sales promotion programs have become the principal tool of retailing in Mexico to acquire new customers and retain the loyal customers. It is also found during the study that loyal customers are attracted to the store brands during the promotional offers while new shoppers are price sensitive and are attracted by the in-store ambience of sales promotions and volume discounts.

Keywords: Sales promotion; shopping arousal; store loyalty; buying behavior; retailing; customer relations (search for similar items in EconPapers)
JEL-codes: L81 M31 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-mkt
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Citations: View citations in EconPapers (2)

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