INFLUENCE OF SALES PROMOTION CAMPAIGNS ON

CONSUMER PURCHASE DECISIONS:

A CASE STUDY OF NAKUMATT SUPERMARKETS

BY

MIKE S. NGOLANY A D33/10192/02

TIMOTHY K. MAHEA D33/9067/03
EVAN. NG'ANG'A D33/8697/03
FLORENCE S. AMOLLO D33/8807/03
HARRIET W. KAR UIKI D33/8940/03

SUPERVISOR:
MRS.OMBOK

A MANAGEMENT RESEARCH PROPOSAL SUBMITTED

IN PARTIAL FULFILLMENT OF BACHELORS DEGREE
IN COMMERCE, SCHOOL OF BUSINESS
UNIVERSITY OF NAIROBI

APRIL2006
 DECLARATION

This managemem research paper is our ori g inal work and has not been submitted i n any
other un iversity or l e<mling institution for the awcu·d tlJ a degree qualification.

NAME SIGNATURE DATE

MIKES. NGOLANYA
TiMOTHY K. MAHEA
EVAN. NGANGA
FLORENCES. AMOLLO
I-IARIET W. KARlUKl

This managemem paper has been submitted for examination wi th my approval L'i the
University Supervisor

Signed .... ...•. .. ..•..•.....••.•............ Date........ ... ... ..................

MRS. MAR(;ARET OMBOK DEPARTMENT OF

BUSINESS ADMINISTRATION SCHOOL OF
BUSINESS
UN I VERSITY OF NAIROBI
 DEDICATION
We wish to ded icate this research project to our parenLs Cor their in spiration, moti vation,
pati ence and their financial support wi thout which, this research would not have been
possi ble.
 ACKNOWLED<;EMEl\T
We are i ndebted to the follow jng people without whom this resean;h paper would not
have been suc.:cessfu l l y com pleted.
Mrs. Margaret Ombok, for her avai labi li ty, guidance, support. appraisal and perseverance
thruughout the research peri od.
Miss Catheri ne Mugo, Marketi ng Di rector of Nak umau Holdings for her kindness and
wi ll i ngness to provide the. in formation required.
All the respondents who f urnished us wi th all the data that made th is research possi ble.
M r. Fred K yalo, for teachi ng us how to use SPSS i n the data analysis.
Most i mportantly, we thank the A lmighty God for g i vi ng us the strength to accompl ish
the research.
 ABSTRACT
Supermarkets play a signilicam role i n the country as th at of availing goods and services
to the consumers. Because of the various challenges that they face, there is an i ncreao;ing
need for the supermarkets to attract as well as retain these customers. Accordi ng to Fill
(2002) sales promotion is a sure way of increasing store traffic and loyalty of the
consumers to the company. The aim of th is study was to investigate the extent to which
the sales promoti on incentives offered by Nakumau influence the ptu-chase dec;ision of
consumers.

In order to achieve this objective, a population of all the currem customers of Nakumall
Hold ings was taken. Si nce there are 17 branches of the su permarket countTy wide
[ www.nakumatt.com ), by the use of con venience sampl ing techni que, 2 branches that are
located in the NCBDA were selected wi th a further random selection of I 00 respondents
from the branches.

A semi -structured queslionniti re was u sed to collect Lhe ptimary datil. The quesli()tmaire
was di vided into two p<u·ts. The fi rst part was used to determi ne general i n formation of
the shoppers and the second part was used to de.tem1ine the extent at which the sales
promot ion i ncentives i n lluenced the consu mers' purchase decision. The researchers
administered the questionnaires personally to faci li tate clari ication of the questions.

A response rate of 73% was achieved; coll ected data W<l'i analyzed by frequency tables.
percentages, standard dev iation and mean tables. M<or research findi ngs indicated that
38% were females whereathe males accounted for 35%. Majority of the consumers
were aged below 35 years. The fi ndi ngs also i nd icted that sales promot ion tools were
used to a large ex tent i n the various levels o r the consumer purchase decision process.
Most of the consumers were very satisfied with the purchases they made b<L>ed on the
sales promotion i ncenti ves and they talked to h·iends and relatives about thei r
ex peri ences. On the other hand. the f'ew c;onsumers that found themsel ves dissatislied
with thei r purchases requested for refunds and compl ained at the cw;tomer serv ice desk i n
regards to the d issatisfy ing factor.
 TABLE OF CONTENTS
CONTENT PACE
Declarat ion.........,...,......................, ...........................,...,..................,...,...............................i i
Dedication ..... ... ... ... .... .. . . .. . . ........................... ........ .... ... .... ....................i i i
Acknow ledgements......................................................................................................... ...i v
A bstract............................................................................................................................. ..v
Tabl e of contents.................................................................................................................v i
List of tables........................................................................................................................ix

CH A PTER ONE: INTRODUCTION

l.l Background to the Study.................................. . ...................................... ...1
l.l. l Sales promotion campaigns..................................................................2
1.1 .2 Consu mer purch ase deci si o ns... ............. . .... .................... . . .. ........... . .3
1.1 .3 Background of su permarkets i n Kenya..... . ............. . ... ............. . ....... . . ..4
1.1 .4 Nakumall hol di ngs.............. . ... . ........ . .............. .......................... ...6
1.2 StatemenL of the Problem........................ . .... ..........................................8
1.3 Objectives or the Study. . ... .... ... . .... ............ . ....... ... . .............................9
1 .4 lm ponance of' the stud y.. ................ . ................ ... ... ........ . ... . ..............lO

CH A PTER TWO: LITERATU R E REVI EW

2.1 Consumer Behaviour............................................................. .. . . .....11

2.2 Purch ase Behaviour. . . ... .............................. . .. ... . ................................ .. J 2
2.3 Purchase Decision .................... . .. .............. . . ...... .......... ....................13
2.4 Sales Promot ion . ..... .. ... ............ .. ... . ... . ................... .... . ............... . ....J 6
2.4.I Natu re ami scope or sa les promotion . .. .. .......... . . . . . ...........................1 7
2.4.2 Consumer-oriented sales promotion.... .... ............ ... . ... ...... . . . . . . ........18
2.5 I n fluence or ,<;ales promot ion on con su mer purch<L'ie deci sion ........................2 1
2.6 Su mmery of li terature Review........... ......... ... . .......................................23
 7 of67 0, G.

CH A PTER TH REE: RESEA RCH METHODOLOGY

3.1 Research design . .. . ... ....................................... . .... ....................... .........25

3.2 The Popu lation.................... ..... . . ... .............................. . . .. .. . .............. 25
3.3 Sample and sampl ing design . . ........................................... .. ................ .. ..25
3.4 Data collect ion... ............ .......................... ..... .... ....... ....................... ...25
3.5 Data anal ysis...... , ............................. . ......................................................25

CHA PTER FOU R: DATA ANA LYSIS A N D FlN DIN <;s

4.1 I ntroduction............................................................................................................27
4.2 Demographi c prol'i le o r the respondents................................................................27
4.2.1 Gender .......................................................................................................27
4.2.2 Age of respondents....................................................................................2X
4.2.3 Level of educat ion.....................................................................................2X
4.2.4 Frequency of shoppi ng..............................................................................29
4.3 In ll uence of Sa les promot ion on Consurner Pu rchase Decisions.......................... 30
4.3.1 Frequency o r shoppi ng at NakumatL.........................................................30
4.4 The Purchase Decision Process........................................... ..................................31
4.4.1 The need recogn ition stage........................................................................31
4.4.2 Information search stage............................................................................32
4.4.3 Evalu ations of Al temati ves........................................................................33
4.4.4 Buying stage...............................................................................................35
4.4.5 Post-purch ase behav iOLU'............................................................................36
4.4.5. (a): Sat isfac tion...............................................................................36
4.4.5. (b): Dissatisfat,1ion..........................................................................37

CH A PTER FJ VE: DISCUSSION, CONCLUSIONS A ND RECOM M EN DATlONS

5.1 l ntroduction............................................................................................................39
5.2 Discussi on..............................................................................................................39
5.3 Concl usion.............................................................................................................41
5.4 Reco mmendati ons.................................................................................................42
 8 of 67 8_ G.

LIMITATIONS OF TH E STU DY................................................................................42

SUGGESTIONS FOR FURTHER RESEARCH..........................................................42

REFERENCES ............................................................................................43

APPENDICES
A ppend ix 1: I ntroduction Letter.............................. ... ....................... ................46
Append ix 11: Q uest ionnaire. ....... .......... . . .... . . ............................ . . . ........... . . . .... ...47
Append ix [U: Sales Promotion Advertisements...... ........................... ....................56
 9 of67 8_ G.

LIST OF TABLES
Table I: Most f requently used sales promotion tools......................................................20
Table 2: Gender of respondent.........................................................................................27
Table 3: Age of respondents............................................................................................28
Table4: Respondents' level of Education.......................................................................29
Table 5: Frequency of shoppi ng at Nak umatt..................................................................29
Tabl e 6: Frequency of shoppi ng at Nak um att..................................................................30
Table 7: Influence of sales promotion incemi ves duting
the need recogn i t ion staf,se................................................................................31
Table 8: Impact of the sales promotion tools on Nakumau
shoppers when seeking inforrnation................................................................33
Table 9: Extent to which the consumers consider the sales
promotion variables i n the evaluation of al ternati ves....................................34
Table 10 lnOuence of sales promotion incenti ves duri ng the
actual purchase.................................................................................................35
Table II: Satisfaction and dissatisfaction of shoppers at
Nakumau..........................................................................................................36
Table 12: Ex tent o r actions taken when sati sf ied w i th
products of sales promot i on.............................................................................36
Table 13: Ex tent of actions taken when satisf ied w ith products
Of sal es promot i on...........................................................................................37

FIGURE
Figure I: Stages in the Purchase Decision........................................................................l 3
 10 of 67 0_ 0.

CHAPTER ONE
INTRODUCTION
1.1 Background

If there is any single word that that can best describe today's business is 'change'. Man y
forces are cl1angi ng busi nesses and the nature of competi ti on. In the words of Cravens
(2000), the drivers of change i nclude, deregulation. global excess capacity, global
competition, changing customer expectat ions, demograph ic shifts <md changi ng work and
lifestyles. These changes have led organ izat ions to emb;u·k on activit i es that will prov ide
a source competi ti ve advantage.

These changes have made consumers become more aware of their envi ronment than they
did a few years back. Their tastes and prefe rences have taken d ifferent tums and change
constantly. Marketers are therefore forced to keep up with these ch anges by not only
prov iding goods and services that w ill satisfy the consumers but also providing them i n a
way that is con veniem and con vi ncing to them. There is also need for the marketers to
detect the market trends and to be updated on such issues so as to remain competitive in
the m arket.

Market ch;mges retju i re altering businesand marketing strategies. Some or the strategies
that busi nesses can adopt not only on customer retention but also their acquisition are
restn1cturi ng. brandi ng. product development, di versi fication which may consist or
i ncreasi ng product l ines or organization branches ands mergers, and customer service
i mprovemenl.

Over the years there has been a need to i ncrease sales volume especi all y i n the short run
thus the use of sales promot ion compared to the other tools of promotion. Accord ing to
Kotler (1 997), decades ago, advertising to sales- promot ion ratio was about 60:40. Today
i n m any consumer packaged goods compan ies, sales promotion accounts for 65% to 75%
of the combined budget. Sales promot ion expenditures have been increasing as a
percentage of budget expend iture annually !'or the last two decades, and the fast growth
 11 of 67 @. 0.

rate is expected to continue. Sal es promotion is now more accepted by top management
as an effect i ve sales tool and product managers are widely using i t to increase thei r
cu rrent sales. Some of the companies are con cerned with i ncreasi ng the sales i n the short-
run; theref{>re sales promotion is often the resort. Companies use sales promot ion to
create a stronger and qu icker response. I t is also used to d ramatize product offers and to
boost saggi ng sal es (Kotler. 1 997).

1.1.1 Sales Promotion campaigns

Sales promotion i s one of the components of promotion mix. others being; advertising,
pu bl ici ty, personal sell i ng and direct marketing. According to Fill (2002), sales
promotion seeks to offer buyers addit i onal value as an i nducemen t to generate an
i mmed iate sale. Sales promotion is therefore a communicttion tool that marketers or
organ i zations adopt to convey a message 10 thei r aud ience or customers.

Kotler (2003) is on the view that organ i zations should concern themsel ves w ith sale
promot ion campaigns because of factors such as competiti ve pressu res from their
cou nterparts, leading to the need of d i fferentiation of thei r products and services. B uyers
have become expectant in that the consumers ;ue· promotion ori ented and are demand i ng
more deals. There is also a need [{>r the organizati ons to i ncrease customer loyal ty.
theref{>re add ing value to a product orervice i s i mportant. Organizations have <m urge of
short-term results and the application of sales promot ion prod ttces qu icker and more
measurable resu lts ( Fill , 20CXl).

Some or the most common and successf ul sales promotion techniques ai med at the
consumer incl ude: Free samples which 1u·e used by marketers l{>r several reasons that is to
sti mul ate the trial of the pnxluc t. to i ncrease the sales vol ume in the earl y stages of the
product l i fe cycle, or to obtain the desirable tl istri bution. Coupons are usuall y certificates
wi th a stated value which is presented to the supermarket for a price reduction of a
specified item .The purpose or the cmtpon is to bri ng the customer, i nto a particu l;u· outlet
and bu ild the sales volume of a speci f ied brand. Premi ums are i tems wh ich are offered
free or at a substamiall y reduced price to sti mu late the purch ase of the product being
 12 of 67

promoted .lt intended to produce q uick sale. The premium can be anachcd to. or pm
aide, the package of the produtt' ietlf. Conu mer come laml sweer>stakeare both
simila!' in that they both im ply opportunities to wi n something .A contest offel'pl'ice
based on skill of the emranrs. Conrests are used tO generate u·affic in retail omlets ..A
sweepstake on the othe!' hand offers pl'ices b.ased on luck of the emrnnr. Sweepstakes are
usually used to sLimulare lagging sales and like contests, al'-e used with orher sales
promotion methods.

Sales pronlotion is cffect_ivc when rhcre is low-involvement of consumers in the decision

making p!'ocess. Salepmmotion as suggesto!d by Frances and Stephen (1 997). is ai med
m increasing store traffic, frec1uency and amount of purchase. SlOI'C loyalty, even out busy
periods and cowlte,·i ng competition.

L1.2 Consumer Purchase Decisions

Acco!'di ng to Schiffman and Kanuk (2004 ) a decision tihe selection of an action fi'Om
rwo or more alrcmative choices. Thus. fo.r a pc!'son to make a decision. choice of
a1rcmarives mma be available. The purchase- decisiorl process consist-. of stag,ea boyer
goes lh!'ough in making l'hoices; nhom which pmducb and setvices to buy (Bl'rkowirz,
1994). Churchill (1994) funhe!' adds that conume!' buying decision may result from
fol'mal OJ' infor·mal decision-making. The way in which consumers decide. whether and
what to by depends pa!TI)' on the significance of the pw·chaser.

Koder & Am1st:rong (2001 ) suggest rhm rhere arc five mges in rhc pw'Chao;e decision
process whk.h include problem recognition. information search and evaluation of
altemmives. purchase decision and post-pw'Cha'e behavior. Howeve!'. it habeen
obse!'vcd by Schi ffman and Kanuk (2004) that a consume, decision is a process that
con!\istof sragcs: need •·ecognition, pre-purchase scatch and evaluation of ahernativcs. It
is funher elabomtcd by ChUJ'Chi ll (1994) that dle consumer pu!'chaser decision consist of
live :;;tages. need n.:.c.ogni[ion in fonnmion scaJ'ch. c.onsiderarion of options, pu!'chase
decision, pot purchase decision.
 12 of 67

Purchae decision is affected by evcral facrors fol' example consu mer· mood.
unanticipated simational factors. animdes of otherand the perceived risk and reason m
purchae; markerc hould rltCI"efore anempt to give consume!'a very good rea-;on to

purchase dlc prod ucat < they arc communicating to them.

Marlwters have to go be.yond t he varioLIS influences Oil buyers and develop an

understanding of how consumers acmally make thei r buying decision. According to
Schiffema n and Ka nuk (2004), a marl<eter fami l iar with the ptcvaili ng decision nile ca n
prepare a promotion mes age in a fotmat that would facili tate consumer information
processing. lvlarkete,·s should be imerested i n how consumer5 gathe1· and process
information. Before planning its marketing alrograms. a company needs ro identify irs
target consumers and the type of decision proces they go dwough. Marketers must pla1l
differently for 3 types of consumer bu ying behaviou r. these are; complex. dissona nce-
reducing behaviour and varie.ty eeking bchaviouJ'. A matkctel''s job is to understand the

buyer's behaviour at e-ach stage and what influences are opel'ating. This undctstanding
allowthe markctcJ' to develop a significant and effective matketing programme t'br the
target market.

1.1.3 Background of Su perma rket iJn Kenya

Accordi ng 10 Nielson (2002), su permarkets can be defined as self service stores ha ndling

predominantl y food and fast movi ng consu mer goods with at least 1 50m 2 of floor space.
Kotler ( 1997) on the odler hand, de.<e1'i bes a su permarket as a rdatively large, low cost,
low matgin. high volume. self-scJ'vice operations designed to 5erve t.hc customel" !'> total
needs for food, laund1-y and hotL<ehold-mai mcnance product. He f U11hcr a1gues dlat
despite. strong competi[ion from new and innovmh•e competitors like supe.rstores and
discoU1H stores. supermarkets remai n the most ftcquemly shopped rype of 1-etail sto1'C. A
su permarket is a retai l i nstirution that h'l' a moderately broad and lll<XIeratel y deep
product assortmeur spanning groceries and some non-food lines that offer J'elatively few
customer services and that ordinal'ily emphasizes rise in either an offensive or defenive
way (Erzel et al, 2007).

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i essed a rapid i ,.lcreasc in supennarkets broughr about hy

Jn n:-cem years Kenya has wm
lrong forces of globalizarion and urbanizmion, dK·re has been a growth in rhc
urban populmion.The grow1h in supermarkets in Kenya has incrcas.xl from a niche in

the 1990s to1he urban fo<xl marke1in 2003. Kenya has over 200 supcrmarke\S and 1 0
hypcrmarkels
(Wea!l1erspoon and Reardon. 2002). There arc a1 te.as1f\)ur Ke.nyan owned supermarke1s.
indudcd arc, Uchurni. Nakumart, Tusker Manrcss and Ukwala group. Uchumi
and Nakumarr are the two dominant chains accounting fot· 70% of !11e market
share (Wca1hcrspoon et al,2002).

SUj)Crmarke.LS in !he country are faced with he.a\'Y competi tion from kiosks,small
dukas or unlicensed busine$ses and hawkers as well <1.! open air market. These.
and othc·r challenges have gone to an extem of causing othe1· promincm SUf.Jel'lllarkcts

such Uch umi

to bow om (Daily Nmiotl6"' June). Supermarkets that arc still survi ving have 1he task
of
catrying om researches to find out the best ways they can stay above Lhe competition by
increaing sales.profits as well as theri marker share and NaJ.'.Uman is no I!Xccption.

In incre.ani g theil' sales, most chains now operate fewer but larger srorcs. The
pracricc
··scrambl ed rne!'Chandising" and catry many non-food i tems. beauty aid:', hom.e
wares,

toys. prescriptions, appliances,videt".lcassettes., pol'il ng good.g.arden upplies -hoping

co
i lines to improve pmtit:; Supennarkers are also improvn
find high margn i g on theil'
facilitie:-. and se!'viccs to anrl ct more cuswmet. Typical improvements arc

better location. improvn

i g dCcor, longer srore hour:check cashing. delivery and even
child care centers. A lrhough customerhave always expected supermarket:; to offer
good
prices. conveniem locmions and speedy check oms. roday's more sophisticated
food buyer wameven mon:. ?vtany supetmatkct.s. d1erefoJ'e arc ..movn
i g upscale" with
the
marke[ pmvi ding ·irom-scrarch'' bakeries_ garment coumeJ'S. and fresh sea food
dcpal'tment:\ Orhers are cuning costs. establishiug mo1'L' ufficiem operations
and lowc,·ni g prices in order 10 compete more e-ffectively with foo!l
discounters.Finally. ro am-act more cu tomers, many large su pe•·m::,rkcl chains ate
struting ro customiztheir
:-totefor individual neighborhood:;. The.y arc tailoli' ng sto1·e sizes produc[ assonrnent.

p·
t ice and promotions to the economic and e!ltic ne<XIs of the local market.

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Accol'di ng ro Kibel'a and Wariungi (1998), competition has b.::en ovel'come by visible
fol'ms of sales pl'ommion that are aimed ar rhe ulrimare pul'chase of pl'oducr. A gentle
product can be over come £he cuswmer IKttUJ'al hesirancy to try something ne\v. Sales
promotion can also be used lO cncoutage cu tomets ro buy mote of the product at one
cimc.thuincreasing the roralusage. Despilc the logic to the contrary. 1hc c.onsume!' who
has a resen'e su pply of a product wi ll be incli ned 10 use more of ir, that is. i f d1e item i.s in
usc is the only one on hand.The retailer may sm
i ply wam to provide rhe consumer with
addi tional incenli vc to pick the ..righr'' b1-and fmm an often large number of brand:;
avai lable i n the marker place.

1.1.4 Nakumatt Holdings

N:lla1matt begitn operations in 1 965 a'\ a family was concerned wirh deali ng i n furniture
anbedding. In the 1970. the famil y busi01ess was i ncorporated as Nak'llru Manress
Li mited. The company extended in rhc rural areas sell i ng consume•· items ro c-hools.
hospitals and other ot·gani7.arions. ComperiLive pricing and the provision of exc-e.llenr
services. led to an increase in demand for its producl range Lhns creating the need for a
retail ourler. There was need however. for a name thar would suir all orher branches.
lhcrefol'Nakumau was considcl·'ed as an appropriate name. The first Na"-'Uman was
Nakuman Mega. which was founded by the father of Mr. Anti Shah i n Nairobi in the year
1992. who is cun·cmly th-Managing Director. Their motivation is clctived from che
c.oumries IX>tential in tcnns of population si7..c (33mi llion people). The company
c.ons·idel"'$ its customers' incomes and sel:s goals in relation LO dw 1ll ngc of income
people earn. Irs customer base consist> of nn estima;e of 500.000 people, which is
basic.all)' less rhnn I % of rhe total population of rhe cou ntry.

Nak'Hllan currenrly has evcmecn brnnchc in Kenya. T\velve of these branches are
located i n 1 airobi . one in Kisunm, one i n Kisii. two i n tv1ombaa and one in EldoreL
Nairobi branc.hes include: Nakumarr Mega. Nakuman Ukay. Nakumarr .Junction.
Embakasi. 1llika road. Village market, 1-righridge. Ngong road. Kat-en. Nalmmarr
downwwn and Nalmmart Li festyle. Nakum.an Li festyle and Nakumatt Downrown are
centrally located i n the CBD and beca use of d1eir srrargic posi tions they have amacrcd

6
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the attention of many and also increased the consumer base of Nakuman supennarkets.
Naku man l ifestyle was opened soon after the closure of Nalmman Check poi nt in !are
2005.The supermarket is siruated i n Hazina trading centre building in Moni'Ovia Street.
Nakuman Dowmown is simated along the Ki mathi Street i n Woolwo•th building.

The management stl'Uctutes aJ'e c.emralized in a way that e.nsutes efficiem decision-
making and execution of tasks. TI1e suucmre consists of the managi ng di rector who hold<
tlle top position, followed by d1e financial comrolle.r. Below the financial controller is the
operations director and the operations coordinator. TI1e financial conrroller is the person
who plays the most important mle of invento•y conttol and hannonizing the operations of
the various branches.

Nal:uman experie.nces tough com petition from its counterpartS such a< Tusker
Mattresses, S·y Matt supermarkets and Ukwala chain stores. It has however, tried to
remain ahead of competition by strategically locating its branches all over the coun uy
and the latest is the introduction of the Nakuman Smart Card, the first Smart Loyalty
Card in Afdca (Sma1t Li festyle Magazine for Smart shoppers. issue April - June 2006.
Pg S). The Card wa< introd uced i n August 2003 and is a loyalty card that earns points for
purchases at Nakumatt and other participating outlets. The points are then redeemable at
participating outlet< for goods, services and gift vouchers. Holder,; also enjoy special
benefits by way of preferential discounted prices for products and services at the outlets
and promotional offers exclusive to them. Cun·ently, according to (Smart Lifestyle
Magazine for Smart shoppers, issue April -June 2006. Pg 8}, Nakumatt Holdings Ltd i s
in 1e process of introduci ng Cyber Cash so as to take Smart C..ards to the next level,
whereby a payment function is being added. It entai ls d1e cardholders pre-loading value
on the ca1'ds and then either withdrawing the money or spending the money at any of d1e
outlets.

Nabunatt uses both trade and consumer promotions though the latter cru1·ics a heavier
weight. Trade promotions seek for discounts f rom thei r suppliers, which then CJeate room
for high vol u mes sales and suppl ie<.. Fo1· inslance, attaching samples of new products to

7
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alread y existi ng ones. It al!'o uses pauonag.e 1ewt:rds like smart cards and gift cards.
Advertising is also a majol' mol used in this company. It is meant to push ptoducts whose
lins have bee extended or have been differentiated. Tile comi)Sil}' consider·how its
promotional tools would influence consll!TlCI'S. decision by. finding om what
dK· consumer$' needs are, finding out how well nformed consumers are about slow
moving products and findi ng out what altemative tohoices of producLconsume,·s pl'efel'. The
main
challenge in sctring sales promotion tools is tryi ng to reach thei1· tatget matkcts by
cre.·uing place mil ity to consumets. Tiley are trying ro overcome this by locating their
branches.in strnlegic places and also u·ying lo diversify ln many pans of rhe counuy.

l n defining their promotional roles nccording to all int('rview cond ucted with Miss. Mugo
dle marketing Dil'ector of Na 1.unan Holdings Ltd. !:he supennarkec considel's the value
dley offer to customers, how they defend dleir margin of safety and the reward they wi II
offer to their customers. All considemions h aving been made. rolecS such as: Supportive
role to allow repeat purchase. i ni timivc role rhar Cl"('ates awareness and allows for new
leads and creative role i n order to beat com petitors are identi fied. To measure the imi)3Ct
of sales promotion on rheir sales volume. promorional objectives and tal'gets are set and
lhe ac.hicvemems obtai ned through lhes-e objectives arc ctitically C\'alualC'd. Nakum m
believes rhar each promotional tool works om well glver1 l.l1e righr stratcg·ic moves.

1.2 Statement of the problem

Supermal'kets play" significam role i n the Kenyan e onomy. They aJ'c lllajol' employers
and comriblllOJ'S towards in frastrucwral de\'elopmem through payment of taxes. They
also i m prove d1e standards of living thmugh the pl'ovision of bask food smff. However
supermarket.; in Kenya face greate1· com tition from small retai l shop. ope11 air markers
including hawkers. kiosks a\Nell as among rhemsclves. NaJau-nan supermarket is no
cxceplion. even though it is a matket leader ]n cities such aNairobi. Kisunm. Kisii and
Momba>a.

Aa \vay of beating compet jtion and striving to be (he leading supem1u·kcr i n Kenya,
Nakumatt has engaged i n aggressi ve pi'Omot ionaJ campaigns through advertii ng and rhc
 17 of 67

sales pmmorion. Prominent among thL'$t' arc the sales prommion campaignrhat it
undeJtakes on regular basis such as p1ice offs. coupons and deals (Daily Nation. 26'" May.
t11 June and 3 1 l> 1 Nl ay. respecrively). Besides. a major sales promotion weapon ir uses is
dle Sman Cards.

Accordi ng to Fi ll (2002) sales pmmotion is a sure way of increasing stOI'C traffic and also
the number of people who become loyal to 1he company. Gi ven that sales promotion i>
expensive. il only makes sense if i1 brings positive resuiLc;. i.e.achieving rile objectives it
was intended for. This would no'quire first and foremost the unde.c<tandi ng of consLune•·
purchase decisions, wheLher ir has been i nfluenced by the promotions. Sales may i ncrease
but not necessa1ily because of promotions. Henee. Nakumait should not necessarily
appoJtion the incr\"as.e in sales or stot-e Lraffic on i[S sales promotion efforls. The
management should understand the fact chat consumer plll-cha'e decisiou may be
influenced by several factors.

Acade.mic reseM he' can·ied om by Naik-uni (2001), Ndcg.wa (2003). Mulili (2000),
Chcge. 1200 I ), and Julie ( 1992) concentrated on the broader aspett of rhe proulotion mix
on V:ltiouorganizations. None of thee tudies however, targeted the specifics of sales
promotion tools on consumers' pu1-chase decisio1lS as used by Supennarkets. Nakumau
management needs to establish how the sale-s promotion campaigninfluence consumer
l>urcha>e. decisions. If these a1'C known. rhe firm mayhem a beuer position to 1-edesign iLs
sales promotion su'tltegics as well as other marketing programs co ensure chat it swys
ahead of com petition. The proposed smdy d1creforc intended to close this gap by seeking
n:-sponscs to the following J Cseatch question; how does rhc sales promorion campaigns by
Nakuman Holdings Ltd influence consumer purchase decision fot its ptoducts0

1.3 Objective of the Study

n1e objective of rhe smd y was LO determine d1e influence of sales pmmmion campaigns
by Nakumatt Holdings Ltd on consumer purchase decision>.

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CH A PTER TWO LITE

RATU RE R EV IEW
2.1 Consumer Behaviour
Schiffmat·! & Knuk ( 1 994) defines. The stUd)' of consumer behavior is concenletl with
not only with what consume,-,; bu y. but with why they buy it ,when a.nd whe!'e and how
t.hey buy it ,and how often they buy j[ Jt iconcerned with the specific meaning t.hat
pi'Oduc.ts hold for consume!'s. Kotlel' ( I 997) has brought us to the attemiotl that consumer
Jxhaviol' is influenced by four factors, basically cu ltural (culture, sulxulrure and social
class), social (reference grou ps. famil y and roles and sroruses), per.;onal (age, stage i n life
cycle. occupation, economic circumstances. lifestyle. personality and self-concept) and
psychological (moti vation, perceptiotl, learni ng, bel iefs ;uld anirudes). Research into all
these factors can provide clues as 10 how lO reach and serve conrumcrs more effectively.

The concept of C.(lllSLHner behavior is l>asically 1he l>chaviors Ihat consumers display in
searching for products. Using everlasting and disposing of products services and ideas.
Tile srudy of conswner behavior com prises external forces such a< family and cu lmre.
imer'llll forces such as anirudcs. and behavior in rhe form of paniciparion in exchange
activities (Churchill & Peter. 1 995). At the social level. cultuJ'C and subculture intluence
consumer hehaviot thJ'ough direct and indil'eCL message rh:n shape values. Social clas.
simila,·ity in income levels. compatablc \Walth, skills and power. all have an influences
people's behavior. Re.ference groups ate groups of people used a,; a basis for evaluating
1eir own belief,and animdcs.One of the most imponam t-efcrence groui)S is the family.
M3rkercrs are imcrested in knowing which family meml>e1'S make bU}'ing deci!\ions as
well as which rype of purchase decisions arc associated with various stages in the family
li fe cycle. At d1e indi vidual level consu mers are i ntluenced by thcit· perception,
morivarion. attimdes and life style. TI1erefore. marketers are ]merest in how consumers
tocess info·tmarion. as well as dtc dtives that propel them 10 fulf ill a val'iel)•
gather and p·
of needs.

To pr'edict buying behavior. ma!'kerers smdy anirudes, or the combination of beliefs

about and evaluation of somedling thar leaLls to a tendency to act in a panicular way.

II
 20 of 67

Marl<ercrs Sllld)r const1111crs' lifestyles through usc of psychographies. whci h caregolize

pt'-Opl c according to the way in which they conduct their live>. Consumer
buying decision:- may result from formal Oi' infol'mal decision-making. Consumers
are most
likely to use a formal decision-making process when the price is high, the product is
complex and rhtn:-. ate many altetnatives. Consumers may look for infom1ation abom
producLs from internal soutce-s, group soutces, marketing sources public sources Ol'
cxperiemial sources.Once they have chosen a product especa
i lly a big -ticked item, they
may experience cognitive cJjssonance. a loss of confidence in theil' choice. Marketers can
counter this by providing suppolt after a huying decision ha!' been made.

2.2 Purch ase llehaviour

Kotler (1997) has brought 10 our anemion laow consumers actually make there buying
decisions, buyers' level of involvement and rhc number of b1·a1 ld availahllO detennine
whether marketers mustidentify who makes and has input into buying decisions:people
can be initiawt. intluencers. deciders. buyers. or users. uld differem marketing
campaigns might be targeted to each kind of person. Marketers must also examine

consume.1-s are engaged in complex buying behavior, di sonance n:-ducing buying,

habm
i al buying behavior,or variety-seeking buyn
i g behavior.

Shi ffman and Kanuk (2004) argue that consw11crs make three types of purchases
basically,rrial purchase, repeat P"rchase and long-tcnn commi tment purchases.When a
conslllner purchases a product (or brand) for the first time 11nd buy a smaller quantity d1an

usual, this pw·chase would be considered as a triaL Thus a u1aJ is the exploration phase
of purchase behaviour which consume•· arteutpts to evau
l ate a pmduct rl1rough direct
use. Fot instance. when consumerpurchase a new brand of laundry dercrgems about
whk.h d1ey may be unce11an
i .d1ey are likel y to purchase .mailer o ial quamities than if it
were a familiar brand. Consumers can also be encouraged to try a new product through
such promotional tactics as fn'.C samples,coupons and or sales prices.

Whetla new brand is an established product category (tooth paste.chewing gum.or cola)
is found by ttial to be mote misf>1ctory OJ' bencr than other brsnd>, consumer are.likely ro
12
 21 of 67

repeat the purcha e. Repeat purchase behaviotll' in close!)' related to the concept of brand
loyalty, which mosr firms uy w encourage because it comrihmc.s ro great srabiliry in the
market place. Unlike tl'ial i n which rhc COilSlllllCI' u'e the ptoduct on a small scale and
wirhom any commim1em a repent putchasc usually signifies that rhc prodult meer.!' with
the consumers approval and that he OJ' she is willing to usc it again and in a large
quamiries. Conumcrs c.an be encouraged to cominuc buying a product through bonus
packs, price off deals.conte.ts, and sweepstakes.

Ttial is not always feasible, for examples with most dutable good;, ( fo,· instance
refl'igetarors. wa;;hing machines OJ' electtic ranges) a consumer usually movedil'etrly
from evaluation 10 a long-term commiunent tlltough pua-chase without rhe oppomtniry fot
an acmal trial. One can encourage consumer to cominue buying d1rough sweepstakeand
event sponsorshi p.

2.3 Purchase Decision

Kmler (1996) defines purc.hae decision as rl:ie stage at which the buyer or the consu mer
actually buys the prod uct. He further states ttilat the constune•· wi ll buy rhe most prcfcl'rt>d
brnnd. Dcrkowitz ( 1994) however. proposes that behi nd the visible act of making the
purchase decision l ies an i mportant process that must be i nvestigated. lie therefore
defines the purchase deciion process as the stages a buyer passes Lhrough in making
choices abom which products aud services co buy or consume. l ie furthel' suggests th3!
there are ti ve stages involved \Vhen con umers arc making a purchase decisio1l. They are
as follow$:

Figure 1: Stages in 1he Purchase Decision

Evak.laticn Purchase R:9-

- d -t Decisi:ln .1-+ p.ld-.ase
A'lematives fleha\,icf

Saun'e: Berkoll'itz K. aut! /-/artier 1?. ( / 994). Markeliflg 4'A Ed. Pg 90

13
 22 of 67

Problem Re.cognition is the initial srep in dte purchase decision. It can be asimple as
finding an empty packet of milk in lhe refrigermor. ln lllatketi ng. advertising or sales
people can activmc a consumc{s decision process by showing 1hc sho•1comingof
competing product. TI1e :.:honcornings may include differences in prit-:es, whereby Lhe
c.ompetimrs' produc1s are priced rela1ively higher than lim of the company.
Nakuman can offer premiums so as ro atU'aCl her comperirol'$· customers.

After recognizing the problem, Lhe consumer begins m setu-ch fol' illfonnation. The
consumer may scan his memo1y for previous expcl'lences wirh the brand or producls.
11t s action is known as imernal search (13erkowitz. 1 994). The consumer may also

undenake an extental search for infonnmion, this is especa

i lly if 1he past experience or
knowledge is insufficient. Primary sources of extemal information ate: personal sources
fol' example ,.cla1ives and f1·iends whom the. customer LJ'USL<. public sources fol' example
product J':uing organizations like consumer report!'. govemmcm agencies and TV
consumer programs and marketel' dominated sources such as infom1arion from sellers
dtat include: adve.rtising, poim of purchase displays in stores a1 d inquiry from
sales fX>.ople.

1lle infoJ'Ination search stage clarifies the problem for the consumer by suggesting
criteria 10 use for !he purchase and yieldingbrand names rhar might nl eer the criteri a The
infomtaiion 1he consLuneJ' has may not be adequate because it does not all 1he
coman
i
factors to consider. It is therefore important d1at the consume1· come up with evalumive
J b tim represem both !he objecti ve anribures of dtc brands rhey may conside1·
crile·
imp011am. Knowing fiLl'Se rhe m:.wketer seeks to identify the most imponam evaluative
critc:tia consumers use when judging produns or services.
Having examined lhe alte1·nmives In the evoked set. the consumer makes a decision. An
evoked sc1 i 3 final shon lis1 of se•·ious appraisal Howard and Shedl (1999). Anmher
defn
i ition by £lerkowi1z (1994) states 1ha1 1he evoked sc1 is a set or gi'Oups of bi'31lds
in dlc product class of which Lhe con5LHner is aware.

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 23 of 67

l m pulse buying occurs often dul'ing the pw'Cl1ase d cision "age. Kotler (1997) expresses
rhar impulse buying is the putcha.se of goc.x:l.without any planning or research cffons.
rvrari<eters mu5r rake advanrage of simarions involving impulse buying. The may offL'r
consumers something of value so d)at rhc consumers are tempted w buy the products and
if the value is convincing enough. rhcy may jt1s1 end up purchasing the product.. Purchase
decision stage may be a nam!'al omcome of thL' evaluation smgc, if one suppliel' is
noticeabl y more i mpressive on all the im portanr (TiteJia than the rest. [f the choice is not
as clear-cut as .this. the consumer may prio,·it ize the ctireria fiurhcr perhaps deciding that
rhe price or convenience is rhe one overriding facror.

Cravens (1996). is on the view that consLHlle,·s do not always follow the process on theiJ'
imenrions. He- argues Lhat dcvelopmcnL-; m lhc purchase !'tagc. may cause the consumer to
make a less pteferred choice and nor to buy at all. CircLunstances at the ti me of sale may
influence purchase decisions, the shoppr·s preferred brnnd may be om of stock leading
to no sale or tal ki ng to the sales person ma y cause a shift i n ptefctence to a brand that the
shopper had not ]mended to buy when she cnrered the stOJ'C.

Reaching con:-umers who engage in low-involvemem decision-making process is a

challenge for marketers. So linle li me and effon is spem on the pw'Chase choice. dlat
information airned at convincing consume1'S of rhe benetirs of the brant! is likely to be
seleclively ignored. Getting the con umcr m cry Lhe producL on the spur of the moment is
crucial. Free samples, coupons and promi11em displays in SLOI'L'S are. mcrics used t6
cncoutage con:;umel's ro li"Y a low involvement product Funllel'. building an overall
positive feeling mw:wd the pmducr among consLune1·s a..:;, opposed to emphasi1.ing on
specific anributcs is an impol'tant objecllve for the emil'e marketing offel'.

The final step in the pu rchase decision is d te post-purchase behavior. After purchasi ng
dtc product. the consumer com,)aJes ir widl his or her expectations and he ma y be either
satisfied OJ' dissat isfied. If the consu mer is dissatisfied, marketers must decide whcrher
dte producl was deficient or consu mer expectations too high . PfOduct deficiency may

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 24 of 67

require a design change.. If ex pectations are roo high. perh3p> the company's ad,'el'tisi ng
or·sales person owrsold the prod uct"s features.

2.4 Sa les Promotion

Kotler (2003) contributes by sayi ng d1at sales pmmmion is media or non-media
marketing pressure appl ied for a pre determ i ned. li mited period ar the level of consumer.
n:'tailer OJ' wholeales in order to stimulate 1rials:. inct'ease consurnct demand 01· improve

product availabilicy. For instance, a few sample of a p1·oduct induces many consumers ro
u·y ir sales promotion may be directed towards u lrimare uset·s or inret•me.:liat·ies.

At the consumer le\•el , promotion typically rakes d1e form of coupons. li mi ted time
discount offers, free samples, tic- i n ..gifts ·. two - for - one pricing. rebates, conh!St or
sweepstakes. spet"ial events or similar e.ffon:. Sale promotion Ltually takes place in
conjuncr ion wi th ad vertising or personal selling. For example a cou pon may a ppear in a
newspaper ad '01' in a piece of direcr mail. Sometimes companies te.am up in single S.'.lles
pmmoLion imended w capture custome1-s fo1" both busine scs.

Accordi ng to Robctt, 131anberg and Scott ( 1 990) in Kork r (2003), sales promotion is a
key ingredicm in marketing cnmpaign. consist of a divci'C collection of incentive tools
mostl y short-rer m. and cle:;igncd to sri mulatc quicker or greater purchase of particular
products or se.1·vices by consumers OJ' tht' u·adet. Sales. promotions al'designs to ptoduce
quick rcsuitLhat will nor onl y boost sales in the imme.:liare. future. but will translate 10

loyal cus.romers 1n rhe long tu n (Churcllill and Peter. 1 995). 1-loweve.r. sales promotion
cannot be conducted on a continuous. basi. because evcnrually rhey become i neffecti ve.
A perpetual "sale". a cou pon wi th no expi ration date. rhe commils otTer of lc same gift
with 1>urchasc all can cause the consumer ro delay purchase. After· aiL ther-e is no sense of
urgency in thee promotions. Thus lO tmly effective. rhe s\les promorion mma be shon
and sweet: offered for a l i mired time and perceived ro haw value.

AccoJ'djug to Kmlet et al. (200n. sale._' promotion consisr of shol't-tenn incentives, in

addition ro >e basic benefits offered by rhe glroducr, or se.t vice, ro encour'!lge rhc pur'chase

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 25 of 67

or sales of a p1'0duct or service. Whereas advertisn

i g offers reao,ns to buy a pmduct or a
seJ·vice, alepromotion offers reasons rhat would achieve immediate sales. It acmall)r
seeks ro mmivare the customer ro buy now.

2.4.1Nature and scope of Sales Promotion

Sales prommion is the clemcm in an organization's pJ'ommional mix llla t serve.s to

inform, pe1suade and remind the market of a product and or d1c organization selling it, in
hope of influencing the rccipiems·feelings,beliefs. or behavior. According to Etzel e.t al.

(1997). sales I)I'Omotion is a demand-stimul ati ng activity design.xl to SLlpplemem

ad veJtisi ng and faci limre personal selling. This means. for sales pmmmion ro be
effective. it has to be used together with thother forms of promotion. This is because
each of th(' various forms of sales promotions have d1cir strengths and weaknesses but
when they are used as a combination they help mn
i imize the weaknesses and max imize
the so·engdls. Sales promotion is paid for by the sponsor and frcquenll)' involves a

temporary incentive to encourage a sales or purchase.Many sales promotions are dirccred

to final consumets. Ilowe.vel'. rhc majo1'itics are designed to encourage company !\ales
force or othe-r members of irs distribution channel ro sell its pi'OdUCLS aggressive-ly.

fnside rhe company. product managers face grearer pre%ure to increase rhcir currenr
sales. and promotion is increasingl y \'icwed as an effective short-nw tool. ln mature
markers. nKmufacmres ru'L' Sll'iving 10 maimai1l market hare through a balance between
long-tL'J'lll ·share of value' gained from advel'tisn
i g and shan-term incentives fol' rhc
consumer.Sales promotions arc LLually conducted by producers and middlemn. Thel"e
ru'e two cmcgol'ics of ale.s promotion: TJ'ade promotions which are ditecred m 1he
members of the dis ribution channel and Consumer promotions which al'e aimed at
consume,.·s. Etzelet al. ( 1997), concLn'S thar manuf:K mrs as a group spend about twice

as much on trade promoLiom; as thC)' do on :. dvenising. and an amoum equal to their

adveJtising on ..::onsUJner promorions.. Several facrors in the matketing cnvironm('nt

comribute 10 popularity of sales p1'0motion.

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 26 of 67

2.4.2 Consumer-oriented Sales Promotion

Accotding to Berkowitz and Hanley (199'4). consumer oriented sales promotion
is ditccred ro ultimate consumers. Consumer-<>ticnted sales prfnnotion lools are use

to support a company's advertising and petsonal selling. 11lese tools arc. coupons,
deals, premiums. contests and sweepstakes, sample, rebateand refund, pmronage 1'CWards
and
cominuiry programs, point of purchac promotion and clispl:tys and advertising 5-pecialties
as suggcste.d by [lcrkowitz and Hanley ( 1994).

Coupons are sales pmmotion tools that usually offer a discoumed price to the consumer.
which encoutages Lrial. Smdies suggest that ma1·ke.r shatc does inc!'caduring the period
immediately after coupons are distribmed. 11let-e are asl o indications. however. that
coupons can 1'\."duce gross revenues by towering the price paid by alt-

ead)•·loyal consume!'!>. Coupons are often far more expensive. than the face
''alue of
the cou1XJn.
111cy may be mailed. enclosed in other pi'Oductor anached to them.111ey may be.also be
inscned in maga7.ines or news,mpers ([lerkowitz and Hanley, 1994).

De3ls are shon-rerm price reduclions. commonly used to .i ncrease trial among potential
customers or m l'etaliale against a COillJletitor's action&. f\)r example, if a rival
manufacrut-er inti'Oduccs a new cake mix,the company t'CS )Onds with a ''two packages for
the price of one" deal. This short-term price reduction builds up the stock on the ki
tchen
shcl\'es of cake mix bu)'ers and makes the competitot-s' intmducrion more difficult.

A Promotional wol often used with consumersis the prem um. which consists of
merchandise offered free or at a significant savings over retail. This laner type of
premium is called self-liquidating,bet·ausc tile cost chatged to the consumer covet'S the
co:..r of the irem. Dy offering a premium at 3!. low pl'icc. companie$ encow·age customers
m n:-mrn fl'cqucnrly or to use more of the pi'oducr. rn continuity pmgrsms however, are
sales promotion tf>01 uto encourage and reward repeat purchases by acknowledging
each purchae made by a consume1' and offeri ng a p1·cmium apurchases accumubne.
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 27 of 67

In conrests consumeapply theil' analytical or creative rhinking ro Lry to win a pt·ice.

Consumers compere for prize and money on rhe basis of skills or abli ity and wn
i ners are
derc.nnined by judging rhe emries or asccnaining which enll'y comes closed to ome
prederem1incd crireria. They usually provide a purchase incentive by requiring a prf>Of
of purchase to emcr OJ' an entry form thm is avaiIable fmm a dealer or adver1iseme.ms.
On rhe other hand sweepstakes requires participanrs ro submi t some kind of emry
form bLH ate purely games of chance requiting no analyt cal or creative effons

by rhc consumer.

Anmhet common consume!' sales pmmotion iampling. which is offering the product free
or m a gre.arly reduced price. Kotler (2003iis of rhe view rhar sampl es offer a free
amowu of product or service delivered dooHo-door. scm through rhe mail, picked up in
a srore.anached ro anorher pmduct,or fe.arurcd in an adve11isn
i g offel'. If s often used
for new producLs. Sampling puts rhe pmducr in the conswncr"s hands. A trial
siz.e is generally offere.d that is smaller rhan rhe regular size, if consumers like rhe

sample, ir is hoped they wiII remember and buy rhe. lroducr. Sam1lling can also be

used wirh
estabilshed pi'Oducts.

Advenisi ng spl!ciahic.s are. useful anide...i mptimed with an advenising name and gi ven
as gifts to consumers. Typical iccms inc lude pens. caleJ)dats. key rings. matches.
shopping bags. T-shirr. cap,; and coffee mugs. Such items ate usually ve1y effect ive.
Refunds offer the ren1m of the money based on proof of purchase.Uuileve.- has used dlis
rool in promoting O IJO detergent Packaged goods often Lt'l.C l'l'hates offers as way to

induce trial of a brand new producr or ro encourage usen; of another bnd swirch. Bonus

packs offer the l:On!-umcr an extra amouJlt t.)f product ar the regular price by providing
larger containers or extra units. Event sponsorship on the orhcr hand is whereby n
company develops ponsorship relations wilh a panicular evem.

Palronagc rewatds are cash ot Olher rewardoffered for the l'egular ue of a cc-•·mi n
company"s pmducts o.- services. For example. aitlnieoffet ·f.-equem flyet· plans·
awatding points for miles U1l\eled rhm ca!!l be rume.d in for free aitline trips. Some

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intenlational hmels like holiday i nn and Marrion hotels have. an 'honored guest" plan that
awards points ro users of dlc hotel:. Comi1mity programs arc ales promotion tool used ro
encoutagc and reward repeal purd1ase.s by acknowlt"dging each purchase made by a
consumer anti offe1·ing a p1·emium as purchas acctunulatc.

Point of purchase (POP) Jl•'Omotions and displays are mt1C1' im ponam 100b !lm take place
at the poi m of sale. POP pmmmions include displays and tlemonstrati()l)s 1ha1 take place
at !11e point of pw·chase Of' sale. Ullfonunatel y. many •·etailers do 1101 like 10 handle. h
und reds of displays, signs Of' postets they recciw fmm the mrumfacmres each year.
!VIanufacmres have tesponded by offering bener POP mate.,·ials, tying them i n with
televisions or pl'int messages and offe.ri ng to set them u p. Point-of-purchase display take
d1e form of adven.isi ng signs. which someti mes actuall y hold or display the pmducL. and
are often located in high-t raffic areas near tl:le cash register or the end of an aisle. The
folluwiug types of consunK'J'-oricnted promotions art• rhe mosr frequently used:

Table ·1: Most frequrntly used sales promotion tools

TYPE OF PROJIIOTI ON FREQUENCY OF

USE
Coupons (di1ecl to consumel's) 100%

Refu nd' 87%

Cents- off prommion 77%

Premium 70%

Cou pons (in rerailcl's' ads) 66%

Sam ples (new products) 64 %

S\veepstakes 64%

Source: !Jerkowit: K. am/ Hartley II. f /994 ).Marketing 4' '1 Ed. Pg.509

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 29 of 67

Most of the manufacturers pUI'eiy undcl'stand that the key to d1eri succ.ess is increasing
i g of their costs. 'TI1iis the highway to pmducti •ity hence their
d1eit- sales and lowern
major concern on these. Therefore. fol' manufacmrers and produceJ's to increase their

sales. they have to stimutate consLlfllCJ' purchases using the various promotional tools or
techniques. Their choice of techniques ro use also delCrrnines their success in achieving
their objectives.Therefore,it becomes importam for them to determine whci h
techniques are the imfX)1tam ro use in ordel' to achieve their goals. T1ley need to establish
\Vhm ways will enable them to dJ'aw cusromel'S to theit·pi'Oducts and not those of the
competi!Ors.
'TI1e.y need to identify what d1e consumers· need, what they aJ'e anracrcd to. what they
value as well as the dri\'ing force 1.har influence thei1· putchase:-..

On the othel' hand,consumel's perceive the various pt-omorional ways used di ffet'Cmly.
TI1is is because each of rhe consumers is unique in his OJ' her needs. castes and
preferences, mtimde rowards a producr among orher facrors. Therefore. when
manufactUI'CI'' and middlemen come up with theri choice of promotional method to use
Lhey have to pu1 these factors into consideration. Au o1·ganizat:ion therefo1.. nctd.s lO
dcwnnine how the varioupromorional tools used influence lhe consumers. Thb.. e.nabks
an organization achieve itmain objective of irexisrcnce. thmugh miuimi1.ing cosrs and
incrcaing sales.

2.51nlluencc of sales promotion on consu mer purchase decisions

Adcock et a,l (2001) agt'CCS dlal c\'Cn when a purchase decision has been made. the
purchase decision can be affected by unanticipated sm
i ational factol's. Some of these
factors coul d he directly associated with the pul'chase. for instance rhc outlet where
rhe purchase is to be made. d1e quamiry to be boughr. when and how ro pay. Very ofren
rhe
traders or uppliers re.rnove the need to make this decision by either including rhe
essentials in rhe form of sals pmmmion wols, for instance coupons. deals. rebates and
samples. 'TI1e. ti ming decisions often linked to the paymcm decision and !he aceptancc.of
cr-edir cards has lO large extent reduces thi:' imponance of these decision!-> fot many
purchaers. Howevc.r, emergence of new technology will ()ave. more of an effecr on
c.ons:un1er!'.
2.1
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11le additional benefit whethe•· in c.ash or i n kind offercxl to consumers dll'ough sale$
promotion is highly likely to influence their purchase behavior (dedsion). After
considering dle possible options, the consumer makes a purcha.<>e decision. The

consumer's choice depends in part on d\e. reason for the purchase (Korlcr et al. 2003).
11le consumer ma)' act quickly. especially if sales promotional tools arc used OJ' rhe
consumer may r>OIpone making any purchase.

When dle consLuners are making their pltrcha.<>es, they find om what products and
sel'viccs anavailable, whm f.amres and benctilthey offer, who sells them m what
prices, and where they can be pmchased (Stanton 't al. 1 994). Without the m3J'ket
information there wouldn't be a purchase decision process sn
i ce there wouldn't be any

decisoi n to make. The manufacruJcrs,J'Ctailers,ad1•eniscr' and sales people provide the

marker in fomlmion when rhey engage consllmers in effons ro inform OJ' persuade in an
anempl to communicate wirh consumers. Sales promoLion ptovides a sujmhle link by
providing c.onsume·,s with samples of d1e products for them to rest them in

small c1uamiries as well as provide consumers wiLh the most neL"ded in fonnmion
concerning the pi'OdUCl.

Davidson et al, ( 1 984) says that a purchase decision ma)' be between objt>etive. or
emmional motives: nevel'theles. in all cas- the sale is: made or nm made in the
c.ustome.rs mind and not in the. mind of the seller.A product is not purchased for its own

sake but for its ability to satisfy a need.The uses of some of these promotional tools help
in determining d1c use that consumers :ll'el ikely to put d1c product imo and
d1erefore guide them wward d1e ri ght pi'Oduct (Cox and B1irran
i .2000). Consumers a1'C
provided wiLh televam infonnmion. get a chance to try a ptoduct and ger to know

whether iL satisfies their needs and also enjoy a price reduction. Sales promotion can
be used to drnw consumers to the product and they cod up making an impulse purchase
as a J'Csult of the sucngth of the sales promotionaltooL

Berkowitz and Hanley, (1994) propose that in the purchase decision process, at the
recognition stage and the information search stage, the sales ptomotion tool rhar imore
 31 of 67

applicable is the f ree samples bcause it helps gain low risk u·ials. Consume•'S will he
more l ikely to take the 1isk of t ryi ng a samp le l'athel' than buying the whole product and
being disappointed. He fu1'ther suggests that at the alternative eval uation and the purchase
decision stage. coupons. deals. !X>im of purchase dis)lays and rebates ate suitabll! sales
promotion tools as they encouragdemand and repurchase of the same pmduct by the
consumer. He fi nall y proposes thm at the post purchase stage, d1e be-<r sales promotion
rool would be the ttw of coupons again, as [hey encourage repeaL purchase from ticst time
buyel's.

2.6 Summary of literature re1•icw

Consume,. behavior is d1e behavior that consumers display i n searchi ng fol' prod ucts. This
behavior may be influenced by facml's such as culture. family, and occupation among
od1crs. This behavior is extended even in the purchase of goods a11d servicewherL'by
consumerI)QI1ray .some behavior when making lhe purcha!\e d -x:ision. The behavio1· is
shown i n a series of step$ thai the consumers follow booth mentally and phyically a.
rhey purchase d1e products. The$e steps incl ude, the recognition of a need sl3ge, where
rhe COJIRUmcrs• needs are 1riggcrcd by imen1al or an extemal stimuli, i[ is [hen followed
by the information search whe11! the consumr.- actively seek for i nformation abom the
products t hat may sati sfy thcil' neds. Aftel' acqu iring this infonnation fmm various
soutces the.y have to e.valume all dle altemarives available to them then finally decide on
the product to buy. CO!lSumers rend to show some post-purchase behavior depending on
their level of satisfac[ion. I f th..:'y wertsaristied with the purchase. actionlike talking
JX>Sitively about t.he purchase to friend-; anU relatives mLY be common. rf they a.l'c
dissatisfied with the purcha;.e then they will probabl y tal k negativel y a bom the product or
rhc whole pul'chase experience and may nor repurchase t he product the next ti rne.

Nfarkercrs have realized a need lO carry om safes pmmotion campaign that an:- undcnaken
lO stimulate tJ'iaJ of pmduns. increase consume!' demand or improve ptoducr
avai labi I iry. Some of the sales promotion tools include coupons, deals, premiums.
comesL.; and sweepstakes. fre amplcs. advcrtiing spedaltie. refunds and rebates.
pau'Onage rewards. poinl oi llllrc.ha.<e promoti ons and poi nt of purchase displays.
 32 of 67

Tite sales promotion tools ca n be. u ed to i nfluence purchase dcciions that consumers
have ro make. '"nley can be tailol'ed in such a way to fit t.hc acmal decision the con:mmer
is facing for example al the recognirion of a :need stage and the information eaa·ch tage.
rhe ales promotion tools thai can be used and arc more applicable arc the frt'>C samples
because lowers the risk of trial. At !he alternai!vc evaluation tage and the actual
purchase s1age, coupons. deals. poim of pU1-chase displays and rcba1es can be used. as
rhey encourage demand.
Fi nally a1 dte post ptu-chase stage, cou pons would be the best toollk'Cause !hey encourage
repeat purchase especially from first ti me buj•cr, .

Nal.:umart has applied various forms of ales promotion tools as we have discussed in
the litemtu re. Some of these tools are premi ums "!Oo comfortable by far" (Nakumatt.
Daily Nation. LS"' may 2006} whereby .they give two free pillows with every pu
rcha'c of slumber ta nd double sized manrcsscs and or chivan. Anmher premi um is the
advert on
3 r·• may 2006 on by Kenchic capon of 1 .4kg and get one pack of chicken burgers.special
offer advert of royal ehophanr rice and gcr free Santa Lucia spaghetti. Another tool that
has been u ed is the coupon whereby according to a Nakuman adven, Dail y Nation 7'"
June 2006 gives a l\Vemy pel'cem discouru on rhousandof item. during n crazy mid yeat
sale, rwenry tlve percem off at Nakuman rneg_a pecial cleamncc- comer 26 u, may 2006.
1l1ey have also used contest in the going on ·Shika more' !'t-ason whereby a consumL"r
shops for goods \VOJ1h five hundred shillings and above. and then lC.Xts a cettain pin
num ber front the ,·ecei pt and qualifies to emc•·in dte draw. Deals have also been used, for
example I'' J une 2006. dtc company offered ·cool prices fo1· cool season' where pdce
had been reduced for the period. See appendix m.

Tite c1uestionthercfore wai f these sales incc mi ves offered by Na 'llman. play all)' pal'l in

rhc decision making pl' :>cess. and if so. ro what exrem did rhcse incentives offt red
influenced the conslttllCJ'$· purchadecision as they go about bnying various goods and
services ro !-.misfy their need.
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CHAPTER THKEE RESEARCH

METHODOLOGY

3.1 Research design

1llis was a descriptive smdy aimed at determining th!! infiuenc.e of ales prornmion
campaigns unde11aken by Naku marr Holdings Ltd on rhe consumer purchase decision.
Accordi ng 10 Malhotra ( 1996). a descriptive srudy has irs objecti ve as a description of
somethi11g in regard to who, whal wherewhen. 3J)d how of a phenomenon. which is the
concc.m of rhe cun·cm study.

3.2 Tl1c population

TI1e population of ime•·esr in rhis study included all rhc cu,·rent customc.rs of Nakuman
supermarket. Accord ing ro Naktunan (2006), there we1·e ,;evemeen branches counnywide
with a total of approximatel y five hundred thousand cuswmers.

3.3 Sample and sampling design

111c1were evemeen branches of NLkwnan coumrywiderwo of these branchewere
sehc[ed using convenience sampling, wirh a funhel' selection of one hundrc.d

respondents.

3.4 Data collection

A self ad ministered srrucrured q uestionnaire was used to collect dat3. The que>tionnai rc
consisted of open ended and closed ended questions and had two mai n pans. Part A
consisted of questions aimed at obtaining general information niX>ut respondenrs: Part B
on the other hand. consisted of spcci tic questions aimed m obtai ni ng data for the
objective of the srud y.

3.5 Data analysis

Given that rhe study was a descriptive desigc1, descriptive statistics was ured co analyze
the data.Data on Part A W:l:'-1 nnalyzcd using freque.ncy disLribution and pe!'centage:-.. As
for -Part B, the data was analyzed using nlcan score and. standard clevimion so as to

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derennine rhe influence of salcs promorion campaign 011 consumer pm'Chase

decision.
Tables and percentages were included to rcpl'csem the response rate.

6
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CHAPTE.R FOUR
DATA ANALYSI"S ANDINTERPRETATION

4.1 In trod uction

This chapter is presented in several sections. The first section looks at the dcmographlc
p1ofilc of the respondents that is d1e gender. age. a nd education le,el. The dam has been
p1-esented in tabular fom1. The second section looks at the imerpretation using
percentages and frequencies. Pan D of the questionnaire used to collect uata consisted of
quetions rhm sought ro find om the extem w which consumer purchase tlecisions are
influenced by rhc sales ptomotion mols. The· response$ \Vere analyzed using de...;cripLi\'e
statistics.
Out of 100 q uestionnaires d1at had been administered to the i nterviewee;,. 73 of them
were returned for anal ysis. This translates i n 10 73.0 percem response. Overall , the rerum
rate can be considered to have been moderately high.

4.2 Demographic profile of t he respond-en ts

Sinee rhe srudy focused on rhe consumers. rhe re.se.;'l(\".:hers found it ne..:-e saty ro analyze
d1c demographic data, as constuner' are diverse. The demographic daw 'ouglu included
gendcl'. age, educmion fevel. occupation and rxsidcncc.

4.2.1Gender
TI1e reseatchers collectd data on the gender of the regpondcnts so ao; to be able to
interpret tlk,i r responses.The findings are presemed in d1e table below.

Table 2: Gender of respondent

Gender F•·cquency Percent

Male 35 47.9

f-emale JS 52.1

Total 73 100
 36 of 67

Fmm !able 2, if ievidem !hat majority of !he respondenLs were females i.e.53% while

35% were male. This implies 1m mos1 shoppers a1 Nakuman are females a opposed 10
1he males.

4.2.2 Age of respondents

Because of differences in dle consume!' age groups. rhe researchers ought ro find our age
brackcls of !he respondc.ms so as 10 know wh.ich bracket shops frequcmly.

Tabl e 3:Age of respondents

Age FrcqurnC)' Percent

13elow 25 27 37.5
26-35 25 34.2
36-45 II 15.1

46-55 7 9.6
56 and Above 2 2.7
Total 73 100.0

Fmm 1.he table 3 above. we can see that mosr of rhe respondents that were imetvicwed
were aged below 35 (52%). A fe.w werel>e!wcen 45-55 years of age (9.6%) while only 2
(2.7%) were above 56 year-s old. This implie!hat majoril)' of!he shopJ>ers in Nakuman
are generally young people.

4.2.3 Level of education

Tile level of education of the respondentwas of imponance because rhis would
dererminc theil' level of undcJ'standing of the sales promotion ac1iviries can-ied om by
NakumarL. l'indings nre presenred on table 4.

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Table 4: Re.spondcnts' level of Education

Level of Education Frequency Pe1·ccnl

Primary 2 2.7
Seconda1y 6 S.2
College 21 28.8

Uni versity 44 60.3

Total 73 100.0

Table 4 howthat 44 (60%) of the people who shop at Nakumau have attained
univerity education. 21 (28.8) have gone u p to collnge level while only 6 and 2 ha\'e
gone up to secondary and primary education :·cspecrjvely.

4.2.4 Frequency uf shoppi ng

1l1e. re earcher saw j[ relevant ro determine rhc frcquencic at which Nakumatt
customers ,;sit rhc su1>ermarket. The Table below shows their flnding,.

Table 5: Frequency of shopping at Nalwmall

Frequency of Shopping Frc.quency Percent

Very often 14 1 9.2

Often 25 34.2
So1nerimcs 29 39.7
Rarely 5 6.8
Total 73 100.0

Tile Table above shows that most of the J'eSJ>Oildents (39.7%) shop at Nak umau
su pe11narkcr frequently, 14 (19.2) shop very often a11d su bseq uently onl y 5 (6.S<Jt) of rhe
respondents rarel y vi il the .supe1·1narkeL

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4.3In fluence of Sales promotion on Consumer Purchase Detisions

Tile smdy was aimed ar eta blishing the extent to which consumer purchase decisions ate
infl uenc.cd by sales promorion camr,aigns. A Ii kert scale was used 10 translate le mean
scon·s. The mean scores were d isttibmcd in.ro rhe dusters of varia bles accordi ng to the
sales promotion incentives being offe1'ed. A mean score of above 4 means rhat rhe
variable was used ar a very lal'gc extent, a mean core of between 3.01- 4 means rhat rhe

variable was used 10 a latgc exrcm, a rnean.s scol'e of between 2.01 - 3 means thaL the
variable was used to a moderate exrem.a menn sco1·e of 1.0I- 2 mt'.allS that rhe vari1ble
was used 10 a I itlle ex1em and a mean score of less or equal 10 I means that rhe ,·ariablc
was not ustxl at all.A standard deviation of above Ol' equnl m I means shows Lhat [here
we1'C significant variations in dK· respondenl.

4.3.1 Frequency of shopping it! Nakumall

11ils was to d!.!termine t he exl ent LO whlch ales incentives offered by Nakuman
; u pem1a1-kct had influenced the frequency of hopr>ing at the omlct.

Tahle 6: Frequency of shopping at 1\a.k umatt

Variahks Mean Std. Deviation
Layout of pwd uctin shelves 2.27 1.23

Displays on su permarket wi ndow 3.06 1.20

Di!'countt; offered such as 25% discou nt!-. 0111 electronics 2.61 uo
Contems of Nakummt magazine given to 5man card 3.32 1.29
holders
Free samples for cus.wme-r trial 3.24 1.28
An.tlchmcnt servic\!s offered like warranties 3.00 1 .49

Free gifts accom p3nied with pun:hase of prod uct and 2.86 1.32
t hbuy-get onc offer
;\\rcragc 2.91 1.30
--
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 39 of 67

Table 6 above howan average mean score of 2.91 which means!hal fo·equency of
shoppi ng at rhe supen narkeL had to a moderate ex1enr ben i nfluenced by the variables i n
thL'. above table. IToweveJ' attachment of serv ices offered such as warramees, fe samples
and customer trials. and the contems displayed on the Nak-umarr magazlnegiven to the
loyalty card holders have been used to a VCJ) ' large exrent ro i nfluence dle f requency of
shoppi ng. On rhe other hand layou t of products ln the shelve. discou nrs on elecu·onics
and f ree gifr offers had only i nfluenced the frequency of shoppi ng to a moderate. extenr.
There was an average sta ndard deviation of 1.30.Standard deviai!ons for all t he vao1ables
rested were greater d1an one implying that there were significant val'iations in the

responses.

4.4 The Pu rchase Decision Proce.ss

Tile consumcJ'S undergo ti ve stages dLH'i11g the ptH'thase dccfion as follows: need
recognition. information search. evaluation of altemmives. purcha.;c dedion and post-
purchasbehavior. Thel'e was need to determine lhe extent ro which the sales incenti ves
offered by NakumaLl i nfluenced the lll ntioned purt ha.e uecisions

4.4.1 The need rec.ugn ition stage

Tilis is the i nitial step in !he purch,t<e decision. Thesearchers wamcd 10 find out if the
sales promotion variables liS!ed below and used by Naku maLt su pcn narket helped the
respondent' in recognizing a problem OJ' a need of a cert.lin product or en.rice. The table
below shows their findi ngs.

Table 7: Innuencc of sales promotion incentives during t he need recognition stage.

Variahlcs Mean Std. Deviation

Layom of prod uc!s in shel ves 2.2R 1.14

Displays on su pcrmarker wi ndows 2.93 1.23

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 40 of 67

Discount< offered such as 25% discounts or1 electronics 2.96 1.25

Contents of Nakumatt magazine. given to smart catd 3.44 1.3 1

holder,

Fl'ee.samples for cusromel' trial 2.94 1.46

Anachmenr seJ·vices offered like waJTanties 3.06 1.38

Free gifts accompanied with purchase of pl'oduct 81ld 3.03 1.27

the buy-get-one offe1·
Average 2.95 1.29

Table 7 indicates that the anac.hmem of ervicesuch a" warramees. magazine comcnt5 or
advenisemcms in lhe Naku matt magazi ne and free gifts offered of buy one geL one free
have to a large extent helped dle J'espondents realize some of the unmet needs they hnvc.
Layout of products io the shelf (2.28), displays on the supermarket windows (2.96) and

fl'cc sample (2.94) all helped the consumc1'S to l'ecognize a need.but only to a moderate
extenr. The table also shows an avcmgc mean score of 2.95 which means that
recogniricm of the need of a product OJ' servic.e !)ad to a mf>t.:lerare extent been in tluenced
by the s.aii!S promotional variablein the above table. An average randatd deviation of
1 .'29 uggestdl3i then:" was a significant variatiOii in d1e re$ponses gotten from the
1 spondems

4.4.2 [n format ion search stage

Af1er the l'ecognition of a nec<l, the conswner seeks to look for infol'matlon of how the
need c.an be sari>fied. The rcsea,-chers saw i t best to find om how some of the

sales promotion activities carried out by the supennru·kel 1lfiucnced Ol' heJi>ed in their
sca1'Ch fol'information dley required.The J'esul ts we·rc indicated in the tableS.

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Table S: Impact of the sales promotion tools on Nakumatt shoppers '11lcn seeking
information
Variabks ;\ lean Std.Dc\'iation
Layom of prod ucts in shel ves 2.21 1.1 4

Displays on su pcrma!'ket wi ndows 2.74 1.1 5

Nal u mart magazine-g-iven w
Come.ms of
- - srnrut card 3.39
-1.47
holder!<
F!'ce samples for custome!' trial 3.1 0 1.39
Anachmem sc!'vices offered like watramie .l.0-1 1.45

ProducLs rhat are exclusively avnilable at Na'Umatt 2.1 0 1.24

and no mhc!' su permarket
A •·cragc 2.76 1.31

Table 8 shows that the magazi nes given to the respondemsuch as ·smart Lifestyle
Magazi ne for Sma n shoppers· assisted them at a large extent du ri ng their search for
information. also free sam ples fol' trial and an,lchmem of services 011 goods such as
warramies helped to a large extent while seeking for information. Having producL
exclusively available in t he omlet only and llO other outlet. window displays and layout
of t he prod ucts on the shch•cs only assisted them at a moderate extcm. The table also
!'hows an average mean s-core of 2.76 whic.h means £hat rhe sales incentives mentioned
had assi ted but only at a modemte extent in the. search fo1· information. 11tere were
sign iticant differences in the responses as there was an average standard deviation of
1. 31.

4.4.3 Eval uat ions of A l ternati ves

TI1e consumeJ'S always .seek to evalume all the allematives :n hand befote making the
acmtl purchac;e. '11le re:;earcherwere imetetcd ro find om to whm extent the sales

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 42 of 67

i bles assist [hL.' consumers espe:e.ially when ev;iluat.ing the prfxlucts aud
promo[ion vara
services.The responses dlal were given to tile rcscarchet'S are rep!'esemetJ in wblc 9.

Table 9: Extent to which the consumers consider the sales promotion variables in
t he evaluation of alternati ves
Val'iable.s Mean Std.De,1ation
ProducL that arc exclusi vely available 31 Nak"tt man 201 1.18
and no mher 'u permarket
Auachmem setvice-s offered like wru·ramic!'\: 2.63 1.1 8
Layour of prod ucts in shelves 2.51 1.15
Discounts offered such as 50% discounts on all 2.41 1.30
electronic go<Xls.
Redeemable poingLai ned by dle sman caJ"d holders 3.03 1.46

CompCLitions .!o-uch as the Otigoing 'shikamore' season 2.86 1.47

comests
Free samples for cuswmet· trial 3.1 0 us
Shon tct·m red uction i n price.< e.g. d uring tD1e holidays 2.82 1.34

Average_ 2.67 1.30

Tile table alxwe shows that the usc of free sam ples and rhe use of loyalty cards held by
the c.ard holde!'s influence them to a large exrem while choosing fmm the.
altematives they have. Exclusive producr. anachment of services.l ayout of prOOucts on

the shelves. discoum oftCrs. comperjtions and draws and finaJiy short term
reduces on pl'cis
influence d1e shOflJlCI'l<· evaluation of altcrnati\'e stage to only a modemte extent. An
average meancore of 2.67 ml'ans that the sales incemlve variables helped to a mode1'alC

extent in £he evaluation of the choiceor ahemmives the consume1'S had. A standatd
deviat ion of 1.46 and 1.47 indicaLed that there was a signific.am vara
i tion in
the

responses. Funher an average S(andard deviation of 1.3 suggested thnt there

waan overall significam variation in £he response:;_
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 43 of 67

4.4.4 Buying stage

Tite. resea1"C hers sought to f ind out how the listcxl sales promotional vatiables had
i-nfluenced [he fonh stage in the purchase deci.ion which is [he aclllal buying of lhc
p1"0duc.r s and se1·vices

Table 10: Jnlluencc of sales promotion incentives during t he actual purchase

Variables Mean Std.De viation
Timing of lhc sales promotions e.g. during the holidays 1.94 1.01
OJ' festive seasons

Payments on installmems 3.31 1 .42

Cash paymcnL'> Wilh anached discounts <>n the cash 2.43 1.16
discounts.
Size of the discounts 2.26 1.10
Type of Jli'Oduct being discounrcd 2.39 1.12

Validi ty of the offer 2.31 1.20

Average 2.44 1.17
I I
1l1e. :able above shows :hat for some particular goods, paymentin insmlhnents ro a large
extcm influenced thei r acmal putchase of the ptoducts. Cash discounts, size of tJtc
discount. type of ptodnct being discounted and validicy of the of fer i nfluenced the acmal
pul''Chase to a moderate extent. whe1·eas the timing of the promotions for example du1·ing
t he hol idays onl y influenced thpurchase of rhe products to a small extent. Table 1 0 also
shows an average mean score of 2.44 which generally means that d1e actual buyi ng had to a
la·
,gc extent been i ntlucnced by the variables in the mentioned. Timi ng o f the sales
pi'Omotion records a ' tandard deviation of LO I which i mpli-< that thete we1-e almost no
significant vati:uions in responses as compared £O payme.ms on installment\ ( 1.42}.
J Iowever an nveragc standard deviation of 1.1 7 wa$ tccorded which uggestcd that

gcncl'ally rhere \\'CI'''t' significant variations in rhc re.sponses.

 44 of 67

4.4.5 Post purchase beiHt•• ior

After the purchase of promotional prodLtcts. the consumers always ex pe.-icncc some post
purchase behavior, they may be satisfied or dissatisf ied with the purchase. and this greatly
de.rermines whether or not rhey wi I I s-e.purchase the produc1. remain loyal to dte
su pe.-marke.t or whether dtey will speak positi vely or negatively about dteir ex pe.-ience to
dtcir friends and relatives. Table I I indicate.< the percentages of those who we.-e satisfied
or dissaLisfie.d wirh lheit ptu'Cha;;es.

Ta ble 11:Satisfaction and dissatisfaction of shoppers at Nakumatt

Frequency [ Percent
I
Satisfied 70 95.9
Dissari,fied 2 2.7
Total 73 100.0

The table above shows that 95.9% whieh represents majority of the respondcnLs. were
satisfied after purchasi ng products and setvice> from Nakumart su permasket on the basis
of salepromotion s.uch as shorr tel'm price reductions. discounts. free gifts accompanied
by the purchase of a product and after sales ses-vicc. Onl y 2<:< of the respondenL< showed
some dissatisfaction with the pw·chase of the pmmmional products of Nakumatl.

4.4.5. (a): Satisfaction

TI1c ta ble below ghows actions dlat were taken b)' the ·
scspondcms aftcs· they were
satisfied with rhei1· purchases from Nakumau gu pemuukel.

Table 12: Extent of actions taken when satisfied with products of sales promotion
Action :l•lean Std deviation

[ tL'srifiL'd lO fl'iends and relativeabout the i nceutivc 2.47 1.14

I testified to friends and relatives about the Nalmmatt 2.50 1.07

su permarket ltd
I made a repear purcha,;eiwoul d make a repeat purchase 2.06 1.09

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 45 of 67

f1om Nakuman

I i ncrease the ftcquency ar which I shop at Nakumatt 2.40 1.04

I have become more Joyal to the supermarke t e.vet since 2.51 I.I 4

T acred as. a referee ro othcl' cutome1'S who needed ro 3.01 UJ

shop
Total 2.49 1.13

As depicted i n the table. most of d1e ,·esporldems acted to a latge extent as refetecs to
ot hel' customc"' who needed w shop. Other shoppers test ified 10 friends and relatives.
made repeat putchases, i ncteased thei t fteq uency of shoppi ng and became loyal 10 the
outler bm only m a moderare extent The- table fu11.her shows an average mean score of
2.49 which means actions taken after shopping m Nakuman had to a latge extent been
influenced by the sales prommion variables memioned earlier. An ll\'erage standard
deviation of I. IJ suggei\ tcd gc:nl'l""dlly that rhcrc were significam diffctcnccs in the
response< that were obtai ned.

4.4.5. (h): Dissatisfaction

Tile table below shows the extent of actions taken by consumers after being dissatisfied
with dle purchase of items m Nakuman supetmatket.

Table 13: Extent or actions taken when satisfied with products of sales promotion
Action ;\'lean Std de, iation

[ ignored the dissatisfyi ng featLU'CS of the promotion!' 3.30 128

and prod utcs·
I grumbled to friends and rclalives abom Na -uman 3.63 1.2 I
supem1arket ltd
[ shifted or would shi ft to another supermarket 3.52 1.3 1

l 1·equested a ,·efund 4.06 1 .40

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 46 of 67

r tegisrered complains with a consumer bureau 4.14 1.48

Total 3.73 1.34

From table 1 3 the consumerrequested for refu nds and al registered wi th the custome,·
care bureau in the evems of dissmisfaction to a vety large extenL The rest 10 a moderate
extent. ignored the dissatisfyi ng factors. gnu11blcd to friends and relati ves or shifted to
od1er upennarkets. 1l1e table also shows an average mean score of 3.73 which means
actions take.n after shopping at Nakumarr had 10 a latge cxtem been infl uenced by the
variablein the above table.. An average standard deviation of 1.34 suggests that there
was a little a sign ificant diffcn:nce or variation in the responses.

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 48 of 67

CHA PTE R FI VE
DISCUSSION, CONCL USI ONS AND R ECOMMENDATIONS

5.1 In trod uction

The objective of this research was to find out whether the consumer sales pmmmion
incemives offered by Nakumaninfluenced the purchase decision of !l1ei,. consume,.s
and also to whm extem they influenced d1ese purchase decisions. The extem to
which the
sales inccmi vcs i nfluenced the conumers' pnrchasc dedion wasmdicd through d1e use
of the like,.t rype questions. This chapter focuses on the analysis of the
findings.
imerp,.ctation of the results by comparing them ro the theoretical background p,.esented in
chapte,. two. and then finall)' the conclusion. Limitations of the study wli l also be

menlioned.

5.2Discussion
TI1e research srudy indci ated that consumers acmally use the sales promotion incemives
i g. The extent to which the con:-umets use he sales
during rhcir putch<t<\e decision makn
promorion incemive:\ ranges in a continuum from a very large extem to a small
extem. TI1e >rudy also indicated that mo't of the goods ,m,·chased on the basis of
salesincentives
include food sruff. electronics. and toi Iettie:; among t)thers. Fumirure inot frequently
purchased on thee bases.

Tile smdy has shown that in the need recognition stage, most of the consumets rdy on the
i es offered by the supcrmatket fre.e of charge as well
magazn 3$ the free gifts attached ro a
good. Consu mers are larg.ely inflLl enced by rhe anachmenr ervices offered for
irbtance
warramies .Freeamplcs offered to tonsumers and di::;coun.t; for instance. dicoums on
i e•·able influencein helping consume,-i dentify the needs.
electronic itenK also h3d consd

However, lea"influence came fmrn the layout of pmduct< in the shelve$ of

Nakumart
supermarket'\.

Before consumers made a purchase dec,i;iolll, they searched fot information abom the

product of interest. Pmper information l)rior to the purchase enhanced cuWIIlCI'

39
 48 of 67

satisfaction. From the finding!; more customers searched for int\)l'lnation from the
Nak-uman magazine given ro the smart card holders. Orher souJ·ces of information mostly
used were free sam ples on customet· trials and attachment se"tvices offered like
warramies" On the mher hand" prod ucts that are exclusi vely avai Iable at Nakuman and no
mher supcrmatker only assisted m a small extent

\Vith regards to evaluation of ahernatives. the sales ptomotional rools that assisled
consumers a lm in evaluation of alternatives WL'rc fi'''C.C s1::1nple.." fol' CU$LO!llCJ' trials which
enabkd them ge"t a feel of rhe products be-fore they buy them, as well as redeemable
points gained from smart card 1\olders which cou ld be reckemed for school fees or
shopping vouchers. Comperition such as rhe 'shik:amore' contC:.'.iland the shon-rerm price
reduction in prices, for example during holidays had considerable impact. Less influence
came fmm products exclusi,•ely available at Nakumarr and not in other supermarkets"

rurther" fi ndings of the study showed that paymem on i nstallmems influenced the buyi ng
decision to a large extent since most customers were able to acquire a product and pay
for it convenienrly, asley detived sarisfaction from rhc product Type of pmduct being
discoumed also largely influenced consumers" However the riming of the sales
prommion, for in tance. dLlring the holidays or rhe fetive .season impacted the consumers
only ro a smaU extent in making the buying decision.

The last stage of the purd\ase Jetision process is rhe l)()'t purchase behaviot·" The
findi ngs ,bowed rhar lll3jority of rhe Nakuman shoppers were satisfied aftel' rhey had
made the purcha$.e and their misfaction was enhanced by the ue of alepromotion by
NakumatL Howevet·" rhete was a small number rhat was not satisfied after rhc put·chase
and of major concern wns to acquil'e information 011 po5t- purchabehavior. Of th('
consumers d1m wer·e sati ficd. majoriry of them aclcd as n::fen:cs to other customers who
needed to shop through pmvidi ng information and advice to rhem" Another large number
became loyal to the supermatket ever since while a small perccnmgc made repeal
purchase as a rerult On the other h3nd, most of 1e dissatisfied consw11ers eithet
registered complainwith thl! consumer bu1-e.nu or l'iXJLleLed for a J'('fund. A small numbcJ'

40
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of rhe dissat sfied consumers ignored rhe dissatisfyn

i g fcanu·es of the promotions and the
producrs.

1n general. the findings indicate that the consumer purchase decisions a1-e influenced
largely by sales promotion campaigns. The sales promotion campaigns are
premiums conrests, free-samples. attachmem of services and f1'CC gifts thai enable
there to be frequency of shopping. lt has also been realized rhat consumers are

made to make purchase decisions rhrough srages. This is mainly rhe need
recognition. informalion search,evalumion of ahernativcs pu1"Chasdecision and post
pu1'Chase bchavio1·.
It was evident from the research that the firm applied the sales promotion campaigus
to influence the consumer purchase decisiou.

5.3 Conclusion
Tite findings of dte study were consistem with the theories discussed in the litcrdtuJ'C
review. The matketing manager mus.r develop a promotiont1l mix d)al prcci!'ely meers rhe
needs of the people in the targer man-er. The sub elemenrs of rhe consumer
purchase
decision would include: - need recognition, informatior1 rch. cvalua1ion of alternatives.
buying tage and po t-pUJ-dla.behaviot. In every stage of the putcha!'e decision. various
sale'.i pmmotion tools play a major rote in ('llhancing the consumer's decision. The
challenge comes in when rhe markcte1·has to blend these promotionaltools to Jpmrc and
innuence the actual smge:;; in the putchase docision.

ln the li erarure review there were- suggestions 1ha1. at the recognition stage and the
informatiou search stage. rhc sales promotion tool thar is more applicable is the free
samples: m the alternati ve evaluation and the purchase decision srage. coupons. deals,
pon
i t of purchase displays and 1-ebares arc suimble sales pmmotion tools and fiually at rhc
IXlSt purchase sragc.the best sales pmmotion tool would be rhe use of coupons again. as
d1ey encourage repeat putchae from fim time buyers. The marketers should therefore
be aware of ome of these .su1negics and use theun to their adv:-mage m cnconragc

frcque-JKY and loyalty together with satisfaction of lheir customers.

5.4 Recommendations
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 50 of 67

Titis srudy ha< shown that the consumel' purchase decisions al'c influenced by the sales
promotion l'ampaigns. Fot there to be a grea1 i nfluence, it is howcvel" i mportam ro tailor
rhe sales promotion to each stage of the consumer pul'chase decision sn
i ce each
promotion has an influence of irs own 3t each stage. Proper J'eseatch is imponam befote
derennining which tools will be c.ffective in influencn
i g the pw'Cita<e decision of
each pmduct at each stage. Fol' instance. fl'ec samples are effective fol' small
consume,.

i>roducts whlie after sales seJ'\'ices arc eftecrive for electmnic pl'oducl<>and fttmimn;,.

LIMITATIONS OF THE STUDY

i) Some consumei'S did not understand dte questions asked pi'Opcrly and ended up
giving wrong answers wilich we1'l:' not applicable in the smdy hence wen:- of less
importance.
ii) The study was conducted during the weekdays and therefore, views of shoppers

who onl}' shop during the weekend wen:. nm achieved.

iii) Some of dte shopJX!I'S at Nakuman weJ'e nor the decsi ion makers but were only
sent to undel'take the purchac and this might have affected the smdy.

SUGGESTIONS FOR FURTHER RESEARCH

Mark.:Li ng r nanagers of V3rious instinuions.. must he able to deccnnine which sales
promoLion wols yild the. greatest impact ininfluencing the consume!' purchac decision.
Ya11ous products ben
i g sold re.:1uire different sales promot ionalcampaigns and \ercfore
each .pl'omotion must be tailol' made. Al'cas recommended fot further researchinclude:

i) Expanding the srudy to include all Nal1.111tan SUJX!I'Inarkets

ii) More involvement of rhe managemem of dle. supe-rmarket in canyn
i g om rhe

stud y.
iii) Estabilsh the impact of the new promotional c:unpaigns being used and their
im pacl in achieving the d sircd object i ves

REFERENCES
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Adcock. D, Hal borg A . and Ross .G (20() I ) Marketing Principls And Practice 4"'
Pe.arsons Educmion Hal'low England.

Oerkowitz K. Hartley R, Kerin RA and Rude.lius W.(1994), Marketing 4"' Ed Irwin,

Boston.

Churchill. GA. and peter JP. (1 995). Marketing: Creating Value for CtL<tomcrs
l1wi n. lnc Bul'r Ridge.

Chege C (2001\ The extent of usage off marketing mix va.-iahls in the shipping
industry in Knya. Nai mbi, Un ivcl'si ry of Nai l'obi

Cooper & Schindler. P (2000). Business Research Methods, McGraw rlill, Irwi n
london.

Cox. R. a nd Bl'inain. P (2000). Rtail Management. 4"' Pea.-sons Educmion. Hal'low.

Engla nd.

· (2006) Nak"lllll31tt Sales Pmmotion Ad verrisement< David W

Dail y Nation Newspapc•·

Cravens (2000), Strategic Ma1·kcting 6'" Ed Me Graw-Hill. I rwin Davidson.

WR.Sweeney, OJ and Stampfl RW ( 1 984). Retailing :VIanagmcnt 5"' Ed

John Wiley and Sons New York.

Etzel MS.Wal ker IlS.. and Stanton W. J. [1 997) t\farkcting II'" E<:l . Irwi n McGraw-
Hill. Boston

Etzel Wa nd Stanton (2006).1\'larkting 14'" Edition Me Graw-Hill. Irwi n

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Fi ll C. (2002). Marketing Communication, Contexts.Strategies and Applications

3'11 Ed. Pearson Education li mjted. Eui'Ope

rrances B. and Stephen P.( 1 997), Principles of Mar·keting, Pitman Publishing..

Assael H (1993) Marketing Pt'iuciples and Stratc.gy2'l<l Ed Dryden Press. USA

Jonathan Be11y ( 1994) "Wilma! What happened to the old Ad?" Busi ness We-ek,
June 6, 1 994 pg54-58

J ulie J B (1992) The extent to which conuncrcial banks in Kenya usc promotional
mix elements to market tbcio· scn•ices. Nai robi . University of Nairobi

Kihera and Wariungi (1 99R), Fund.amentals of Marketing: Au Afr·icau

perspective, USA, Cambridge Uni versity pres'

Korler P. ( 20<H) Mar·ketiug Management 11 °' Ed Premice flail, New York

Kotler P.. Armst mng G., Saunders L and Wong V.(20()1 ) Principlc.s of Marketing
3'11 Ed Premice llall. Harlow. England.

Kotle,· P ( 1999}. Marketing i\'lanagemcnt Implementation And Control,911' Ed

Prentice Hall. Harlow. England

Luck DS and Rubi n RS (1987) Mnrkctin:g Research 7'" Ed Prentice Hall. New Delhi
I ndia.

Mal hotra NK. (1 996), !\1ar·keting Research and Applied orientation 2'"' Ed NJ
Premice hall.

Mugo C (2006). Interview at Nakumatt Head Offices. Mombaa Road. r I 1.30am)

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Mulili B M (2000) Utili?.ation of pmmotional mix clements by small business

cnterpdscs: the case of Nairobi Eastlands. Nalmbi. University of
Nai robi

Naikuni J A (200I) An empirical investigation of the application of promotional

mixes clements within multinational phaml3ccutical companies in
Kenya. Nairobi. University of Nairobi

Ndegwa S M (2003) A sur vey of the application of promotional mix in the Agro-
chcm ical ind ustry Nai mbi. University of NaiJ'Obi

Shiffma n. Land Kanu k. L (2004) Consumc.r Behavior 811' edition. Prentice Hall.
New Delhi India.

Sman Li festyle Magazi ne for Smart shoppers. issue. April -June 2006.

Stanton IV,J , Etzel , M J, and Wal ker, B.J ( 1994) Fundamentals of Marketing 10 11 '
Ed mcgmw-hill New York.

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APPENDICES
A ppendix I:

Letter to the respondents

Dear Respondent,

'We are u ndergraduate students. currently u ndertaki ng a survey on

'I nfluence of sales Promotion Campaigns on Consumer Purchase
Decisions: The Case of Nak umatt Supe.rmarkets within Nairobi Centra l
Business Disirict'.This study is in partial fultlllrnen t of the requi rements of
a Bachelors Degree in Commerce, Un iversi ty of Nairobi.

You have been selec ted to partici pate i n this stud y and we wou ld high l y
appreciate if you assisted us hy responding to all questions as completely,
correctly and honestly as possible. Your response w ill be treated wi th utmost
con fidence and will he used on l y for pmposes of th is srudy.

TI1ank you.

M ike. S. N.
Ti mothy M. K.
Eva. N. N.
Fl orence.S. A.
Hani·ct, W. K.

Bachelor of Commerce Students, 2006

Uni versity of Nairobi

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Appendix II:
The Questionnaire
TI1e.quetionnali'e below hatwo pan. Pan Ais aimed m giving the pmfi of the
respondent. Pan B lrics to gauge £he in fluence of sales promOLion campaign undeJ'mken
by Nakumatt Supermarket on the consumer purchae decision.

Ple<tse respond to the following questionand where applicable,mark the relevant box
wirh a tick.

PART A
I. General information
a) Respondent'name (optional) .
............................................................... b) Occupation....
............... ............... ............... ....................................
c ) Place of J'esi dence..............................................................................

d) Gender

Male ( ) Female ( )

e) Age group (tick one)

Below 25 ( )
26 -35 ( )
36-45 )
46 - 55 )
56 and above ( )
I) Level of Education

Primary
Secondary
College )

tJniversiry

g) How often do you shop at Nnkumau?

Ve.1-y often ( } Often ( ) Sometimes ( Rately () Never ()

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PART B
2. Which ty peof sel'vices or pl'oducrs (e.g. electronics. fun>ituJ'C. food stuffs and mhcr
accesso•ies) do you purchason the basis of thfollowing sales i ncentives offcrro ar
Na uman Supennarket' 1

Incentive Produc ts purchased

s
i ) Short tel'm pl'ice offs. during
certain oc.caions for example on ...... ..... ·····
· ··········· · ······ ........
· ····
the holidays
.......
.............................................
i i) Discounts on speci fic irems
.....................
............................
iii ) Free gilh accom panied l>y the
pw·chase of a pl'ollucts e.g. buy- ................. .... .... .................
........................... .. .
.................
.. .
one-gcr -one fl"'!c. ..

i v) Anachmem serviceoffered for ...................................................

exam ple free i nstallation of .............................. ....
clecrronic productor waJ'1'3.ntics ,................

anachro ro the products

...........................
.... ..............
; ;

v) Rroeemable poi nrs gai ned by the

SmHrt card holde,-,; .................
........ .... .,..........
.........
,....... .... .............
........ .....

........................... .....................

vi) Competitions such athe on going

' Shi/..a more season comes.ls .
.......... ... .................
..................

................................................
...

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3. Indicate on a scale of one ro five. where: 5 .:: very large extent, 4 :: large extenr. J =
some extcm, 2 = small extem and I = no extent. the extem to which the following
sales i ncentives offet'Cd by NakttJJtatt Supetmatket have inc.t·ead yow· frequency of
shopping at the su petmatkct.

Very large I Large Some Small No

Incentives Extent Extent Exrem Extent Extent
5 4 3 2 1
Layout of the ptoduciLn the
shelves of the supennatkct
Displays on the windows of the
supermat·ket
Discounts offered such as the 25%
discount offer on electronics.
Comenrs of the free Nakumau
I
magazine.s given to the Sman catd
ho[dCJ'S
f'ree samples offeted for consumer
Lrial
Anachmem services oftered foo·
I
exam ple free installation of
electtonic productor warrnmies
anache;:l to 1he. ptoduc.ts
Free gifts accompanied wiLh the
purchase of a ptoducr and the buy-
aN-one fre<.- offe1'S

4. [lefore. any purchase of a pmduct a coobumer first real izes a problem rhus recognizi ng
the need foJ' l'11ac pmduCL or sc1·vice. On a scale of one to five. where: 5 ::: vety large
extent 4 :: large extent. 3 -= some extent. 2 :: small l'Xtem and I = no exlem indicatc
the ex[ent to which lhe following incentives have helped you recognize lhe need of a
product or a service.

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Very large Latge Some Small No

Incentives Extell!
5
I Extent
4
Extern
3
Exte11t
2
Extent
1
Layout of the prod ucts i n the
shel ves of the su pennarket
I
Displays on the wi ndows of the
supermarket
Discounts offered such as the
I I
25% discou1lt offer on
electronics.
Comcms of the free Nakuman
magazine$ given to the Smrut
card holders
Free gifts accompanied wi th the
purchase of a product and the
buv--ger-one free offers
AnachmC'nl sel'vices offered for
example free installation of
electronic producLor warranrie.$
ar:tacl1ed to the products
Free samples offered fo1·
consumer trials
I
4. Having idemi tied the ne.ed, a consumer usually searchcfor informmion on what
to buy from several SQLU'C<:S e.g. friend. adveniemcms, ptommions and inquil'ies
from sales people. I ndicate lc exte nt to which sales i nce.nri,•cs carried our by
Nakumart has as.,isted you when you are looki ng for the products to buy.

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 59 of 67

Very large LargL' Some Small No

Incentives Extell! Extem Extcm Exte.m Extem
5 4 3 2 I
Layom of the products on the
shelves in the supermatkc-t
Displays on the windows of the
SLlpctmatket
Contems of the free Nakuman
magazilles given m rhe Smal't
card holders
Free sample-< offen!d for
conumer trials I
Anachmem services offered for
example free Installati on of
elecu·onic product.; or warranties
anached to thel)roducts
Pmducts that are exclusively
available at Nal-u: marr
supermarket and no mhel'
suoetmarket

5. Once you have all d1e information acquired for d1e products ot services needed.
there is need to evaluate all rhe altematives.E.g.you may have idemified the TVs

you like.however d1ere are several brands like the Sony.Sanmlllg,Panasonic

and the like. there i s therefore a need to evaluate all the brands and come llJ)
with a choice. n a scale of one to five, indicate lc extem to which the follownig
sales incentives have helped youin makn
i g a choice of the product to purchase.

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Ve.ry large Large Some Small No

Incentives Extent Extem Extcm Extent ExLt·.nt
5 4 3 2 1
Pmductthat are e.xcluiv.cly
available m Nal:umart
supetmaJ'ket and no mhcr
suoermarket
A!lachmem services offered for
example free installation of
eleclronic pmdncts OJ' warramie
alltlclled to the omducts
Layolll of the prod ucts on the
shelves in the su permatket
Disco urm offered such as the
50% discoums on all decu·onic
goods.
Redee mable poims gai ned by t he
Sman card holder'!'.
Competitions such as rhe on
going 'Shika more' season
conres:t-;
Free samples offered for
consumer trials

Shon tel'ln reduction of pl'ices on

certain occasions for example
d uri ng dle holidays

6. I n the. actual 'tage of buying.one should consider the tim ing.ofrhe purchase, i.e. when
to buy, the quantities to purchase, the mode of paymem whether i n installmcms OJ' by
cash and the servicethat are anad1cd to the producr. To what extent do the following
influence the acmal buying of the prodUC[5 OJ' ervi.:e:·
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Very large Large. Some Small No

Incentives Extent Extent Extem Extem Ex Lent
5 4 3 2 1
-1- -
P1'0ducts that are exclusively
available at Nalmmatt
supermarket and no other
SUI)Crmarket
Anachmem services offered for
example free installation of
electronic pmducL.; OJ' warranties
anached to the p_roduscl
Layom of the products on the
shelves in the supennarker

Discoums offered such as the

50% discounts on all electmnic
Is
Redeemable points gained by the
Smart card holders.

Competitions such as the on

going 'Shika more· season
ConteSL
Free. samples offered for
consumer rrial:;

Short term reduction of prices on

certan
i occasions for example
duri ng the holidays

6. ·J n the actual stage of buying, one should consider rhc timing of rhc purchase. i.e. when
to buy. the c1w1.ntides to pU!'Cha. the mode of payment whether in installments or by
cash and the services that are anached to rhe producr. To what extent do the follo wn
ig
influence the .acmaJ buying of the pmduns Ol' services'?

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Events Very large Large Some Small No

Exrem Exrem Exrenr Exrem Exrem
5 4 3 2 1
Timing o f the sales
promotions e.g. during
holidays, festive seasons.end
of the month or at
Payments
the midd eonof installments
rhe month e.g.

Cash payments with attached

discounts on the cash payment
Sizes of the discounts

Type of product being

discoumed
Validity of the offer.whether
the incentives last for a month,
a week or a weekend

7. After purchai ng the products or service:;. from Na 'Uman su permarket on the basis of
ales prommions such as shon tcl'm price reduclions. discount.;. free giftc;
accompanied by the pLt'lChasc of a pmduc-t and after aleservices.ate you

Satisfied ( )
Dis:>atisfocd (rick one) )

8. In generaL whenever a consumeJ' is satisfied wil11 any purchase of a producL he or she

may tak(' ccnain aclions. On a cale of one to fiv. where 5 = very large exLcnt. 4 =
laJ'gc extcm, 3 -= ome exLent, 2 -= small extent and 1: no exrt nc indicre the extem
ro v.1ilch you would undenake or undcJtook the follown
i g actions at'ier rhc purchase.

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Action Ve1vy large Lstge Some Small No

Extent Extent Extem Extem Extent
5 4 3 2 I
I testified to friends and relatives
about the incemive I
I testified to friends and relatives
about Na'Uman Supermarket Ltd
I made a repeat purchase/ would
I
make a repeat purchase fmm
Nalmmart
I i ncreased dle frequency at which
T shop at Nak'Umatt
T have become more loyal to the
I
supe1·marke[ ever siJlCe
J acred as a referee to other
customers who needed to shop. by
convincing d1cm lO shop from
Nalmmart

9.Please indicate i n what other ways you re ponded or would respond for being satisfied
with Nakuman Su pennarkel and the incentives they offere<l.

····'-······..... ········•···· ....................'..

1 0. Alternati vely you may ha·,e been dissari fied with the pw·chase of a product. Pkase
indicate to what extem you responded to the following actions

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Ve1y large large Some Small No

Actions Extem Extelll Extem Extent Extenr
5 4 3 2 1
l ignored the dissa[isfying
fearure.s of the promotions
and JlJ'OOUCtS
I grumbled ro friends and
relmi vc$ abom Nak.'llman
Su!lermarket Ltd
I shifted or would shift
to another Supermarket
T requeste<l a refund

I registered s complainr wi[h

a consumer bureau

I I. Indicate in what other ways you responded for being dissatisfied wirh Nakumatt
Supermarket and theincentives they offe,-ed.

THANK YOU FOR YOUR COOPERATTON

APPENDIX lli
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