EFFECT OF SALES PROMOTION ON CONSUMER BEHAVIOUR: A

COMPARITIVE STUDY ON LG AND SAMSUNG

SYNOPSIS

SUBMITTED FOR THE PARTIAL FULFILLMENT OF DEGREE OF

B.COM (HONS.)

IN THE

DEPARTMENT OF BUSINESS ECONOMICS

(COMMERCE)

UNDER THE SUPERVISION OF: SUBMITTED BY:

DR. BHAWNA JOHRI TAMANNA SINGH

ASSISTANT PROF. B.COM (HONS.)

DAYALBAGH EDUCATIONAL INSTITUTE

(DEEMED UNIVERSITY)

DAYALBAGH, AGRA-5
CONTENTS OF SYNOPSIS:

 INTRODUCTON
 SALES PROMOTION
 CONSUMER BEHAVIOUR
 LG
 SAMSUNG
 REVIEW OF LITERATURE
 RESEARCH GAP
 NEED OF THE RESEARCH
 OBJECTIVES OF THE RESEARCH
 METHODOLOGY
 PROPOSED CHAPTER PLAN OF THE STUDY
 REFERENCE
 JOURNALS
 WEB REFERENCES
INTRODUCTION:

SALES PROMOTION:
Sales promotion is a marketing strategy which has been studied for years and has become a

crucial factor in modern marketing. The purpose of promotion is to reach the targeted

consumers and persuade them to buy. Promotion has been defined as the coordination of all

seller-initiated efforts to set up channels of information and persuasion to sell goods and

services, or to promote an idea. Sales promotion is a vital element of a promotional

mix.modern marketing is more than just producing good products, suitable pricing and easy

access to them sales promotion is one of the promotional mixes other than advertising, public

relation and personal selling. Here effort is made to increase the sale by motivating everyone

who is involved in the sales of the product. Major part of it normally revolves around

salesmen, dealers and customers. The efforts can be targeted to any of the three mentioned

above to increase the sale in the short term. Moreover it can be customer oriented, trader

oriented and sales force oriented today, attracting new customers has become so important in

modern retailing in addition to loyal to them and efforts have been paying in that perspective

as known, the cost of keeping consumers present is less than the cost of gaining new

customers. World of today’s world is a benefit-cost. Firms have to rethink the relationship

between attitude and behaviour of their consumers. All businesses need to communicate to

the consumer what they have to offer. Sales promotion is one of the promotional mixes other

than advertising, public relation and personal selling. Here effort is made to increase the sale

by motivating everyone who is involved in the sales of the product. Major part of it normally

revolves around salesmen, dealers and customers. The efforts can be targeted to any of the

three mentioned above to increase the sale in the short term. Moreover it can be customer

oriented, trader oriented and sales force oriented the success of business organization very

much depends upon understanding the buying behaviour of the customers and providing

them with the goods and services as per their requirements along with the specifications. This

understanding is also essential for the estimating the future trend of the customers buying
behaviour and forecasting the demand for the products. Consumer behaviour can be

examined as to how; when, what and why they buy. The basic objectives of sales promotion

is to introduce new products, attract new customers, induce present customers to buy more to

help firm remain competitive to increase sales in off season among others.

CONSUMER BEHVIOUR:
Consumer behaviour is the process; thoughts, feelings and actions related to consumption

process, this Behaviour is the dynamic interaction of the individual thoughts, feelings, actions

and behaviour in the environment by which the human being conducts exchange aspect of

their lives. The environment refers to the external factors that influence the human being,

these factors such as cultural and social forces in the society and in personal lives as well as

physical and situational forces relates to the actual shopping experiences. The behaviour is a

dynamic interaction and communication between consumers and the marketers doing

exchange the sales party needs to be motivated as they serve a proper link between the

company and the traders, and the customers and the company. The dealers are also to be

motivated when the products are sold through them. All these parties are needed to give their

full effort to get a better output. There are many sales promotional tools which are unique in

its own meaning. These sales promotional methods may be aimed at increasing the sales of

current, obsolete, slow moving, or seasonal products so that the profitability can be increased.

The decision for adopting any particular method of sales promotion is taken by the marketing

team after considering many variables.

LG:
LG Corporation is a South Korean multinational conglomerate corporation. It is the second-

largest company of its kind in South Korea, following Samsung, and its headquarters are

situated in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG

makes electronics, chemicals, and telecom products and operates subsidiaries such as LG

Electronics, Zenith, LG Display, LG Telecom and LG Chem in over 80 countries. Created in

1947 as “Lucky-Goldstar”, it assumed the abbreviated name of “LG” in 1995. LG is also an

abbreviation of “Lucky Geumseong” in South Korea, which is translated into English as

Lucky Goldstar. Before then, many electronic Products were sold under the brand name

Goldstar, while some other household products (not Available outside South Korea) weresold

under the brand name of “Lucky.” The Lucky brand was Famous for producing household

cleaning products and laundry detergents in South Korea.The history of LG Electronics has

always been surrounded by the company’s desire to create a happier, better life. LG

Electronics was established in 1958 and has since led the way into the Advanced digital era

thanks to the technological expertise acquired by manufacturing many home Appliances such

as radios and TVs. LG Electronics has unveiled many new products, applied new

Technologies in the form of mobile devices and digital TVs in the 21st century and

continuesto Reinforce its status as a global company.

SAMSUNG:

Samsung, South Korean company that is one of the world’s largest producers of electronic

devices. Samsung specializes in the production of a wide variety of consumer

andindustry electronics, including appliances, digital media devices, semiconductors,memory

chips, and integrated systems. Samsung was founded as a grocery trading store on March 1,

1938, by Lee Byung-Chull. He started his business in Taegu, Korea, trading noodles and

other goods produced in and around the city and exporting them to China and its provinces.

After the Korean War, Lee expanded his business into textiles and opened the largest woollen

mill in Korea. He focused heavily on industrialization with the goal of helping his country

redevelop itself after the war. During that period his business benefited from the

new protectionist policies adopted by the Korean government, whose aim was to help large

domestic conglomerates (chaebol) by shielding them from competition and providing them

easy Financing. During the 1970s the company expanded its textile-manufacturing processes
to cover the Full line of production—from raw materials all the way to the end product—to

better compete in The textile industry. New subsidiaries such as Samsung Heavy Industries,

Samsung Shipbuilding, and Samsung Precision Company (Samsung Techwin) were

established. Also, during the same period.

 REVIEW OF LITERATURE:

AUTHOR YEAR TITLE OBJETIVES FINDINGS

Focuses on Consumers
consumer would be easily
1.SINHA AND SMITH 2000 Impact of sales evaluations of convinced to
promotion on store with buy products
store promotional deals that do not
preferences. that are equivalentrequired
on a unit cost but additional fees
are worded and higher
differently. perceived by
consumer
values.
Effect of sales Impact of sales Sales promotion
2. SHAHRIAR 2012 promotion on promotion on has direct
ANSARI consumer consumer impact on
CHAHARSOUGHI
behaviour behaviour based consumer
AND TAHMORES
HASANGHOLIPOR based on on important cross behaviour and
YASORY culture cultural models. culture has
significant effect
on the behaviour
of individuals as
well.
sales promotion
act as a
moderator of the
effect of culture
on the consumer
behaviour and
may effect
consumer
behaviour
independently of
culture
 Analysing the This study seeks This study
3. RIPON KUMAR 2013 Effects of Sales to demonstrate the found that sales
CHAKRABORTTY Promotion and impact of sales promotion and
Advertising on promotion and advertising is
Consumer’s advertising much more
Purchase simultaneously on effective in low
Behaviour consumer’s involvement
purchasing category
behaviour products where
a simple
promotional
signal can lead
the consumers
to buy a
product.. This
study found out
that sales
promotion is
most effective
on the
consumers who
travel through
the peripheral
route and it can
leads the
consumer’s
mind to brand
switching.
Impact of sales To find the The results
4.SONI NEHA 2013 promotion tools various sales shows that
VERGHESE MANOJ on consumers promotion tools among the
purchase decision and its impact on various sales
towards white purchase decision promotion
goods(refrigerator) towards white tools:offer,
at drug and Bhilai good(refrigerator). premium and
region of CG, contests are the
India. most
influencing
variables for
consumer
purchase
decision.
5.SALVI 2013 Impact of Sale To identify the This research
Promotıon various sales reveals that sales
Technıques on promotion techniques promotion
Consumers’ Impulse and the order by activities play an
Buyıng Behavıour which they influence important role in
towards Apparels at the consumers’ the process of
Bangalore decision making framing the
towards apparels. marketing
To identify the most strategies by the
effective sales retailers. Sales
promotion technique promotion
that influences the techniques are
customers’ impulse used by the
purchase decision. retailers and
marketers to
attract the
customers and
increase their
sales by providing
different deals
and additional
incentives to
enhance their
product purchase.
On the basis of
the above
findings, the
research work
concludes that
sales promotion
techniques play a
significant role in
consumers’
impulse buying
decision.
A study on impact of To determine the As per this study
6.PARIDHI 2014 sales promotional impact of sales sales promotional
BHANDARI activities on customer promotion technique activities do have
buying behaviour in customer buying impact on
with special reference decision. consumer buying
to Rathi build mant, behaviour
Raipur. majority of the
customers Rathi
build mart is
having belongs to
businessman
group.
7.WEERATHUNGA 2015 Impact of sales Study the impact of results suggest that
AND PATHMINI promotion on various sales supermarket
consumer's promotion techniques authorities should
impulse buying those used towards give higher
behaviour (ibb); influencing IBB in attention on loyalty
study in supermarkets; programs and,
supermarkets in examine the most secondly buy-
anuradhapura city effective sales one get-one free as
promotion techniques strategies to
which influence the establish the
customers’ impulse market via impulse
purchase decisions buying behaviour.
provide
recommendations to
supermarkets
authorities on IBB
to strengthen their
sales.

The effect of The objective of The results of

8. BEIMNEL ADELA 2017 sales promotion this study were to the study
on consumer analyse the effect revealed the
buying of sale promotion sales promotion
behaviour:the on consumer tools have a
case of buying behaviour relationship with
commercial in case of CBE consumer
bank of Ethopia buying
behaviour in
case of CBE

The effect of Effect of sales Sales promotion

9.CHRISTOHN 2018 advertising and promotion on as one of the
LOUSE NANGOY sales promotion consumer buying independent
WILLEN ALFA on consumer decision of variables does
TUMBER
buying decision indovision TV not partially
of indovision cable provider affect consumer
TV cable buying decision
provider significantly
10 .MOHAMMAD 2018 Impact of sales To study the Sales promotion
SALMAN SHAMSI promotion on concept techniques are
AND MOHAMMAD
consumer Of sales effective for
ASIF KHAN
behaviour: An promotion and influencing
analytical study consumer consumer
of readymade behaviour. purchase
garments and decision.
footwear Different
segments. promotional
tools influence
consumer
decisions in
variying trend.
RESEARCH GAP:

After reading the various reviews of literature available on the topic, it is evident that there

are many studies that have been conducted which all are focused on the different electronics

companies. Whereas, this studies shows the effect of sales promotion on LG and Samsung

companies.

NEED OF THE STUDY:

This research would be significant to understand the influence of the promotions on the

consumer’s Behaviour. The study would determine the relevant short-term marketing

strategy that would have greater impact on increase in sales volume and market share. The

outcome this study would be Relevant to different companies to determine the various factors

that influence the consumer’s Purchase decisions and adjust their sale promotion strategies

accordingly. It would also help the Companies to utilize their resources in optimum way and

increase profitability and the market share. This study would determine the importance of

understanding of consumer’s buying decision and their dynamic attitude before making

decision regarding the sales promotion and the implication of the consumer’s behavior on

sales.

OBJECTIVE OF THE STUDY:

The general purpose of the research is to study the significant role of the sales promotion

that Influence the consumer’s buying behaviour. With the increasing competition, today all

businesses are using the sales promotional activities for competitive advantage in the

marketplace.

This research seeks specifically:

1. To find out the impact of the sales promotion of selected companies.

2. To find out the impact of sales promotion on consumer buying behavior.
RESEARCH METHODOLOGY:

Synopsis will represent the practical methodology and the theoretical assumption that support

the methodology used for this research. Research methodology determines the systematic and

scientific procedures that drive the study to the results and the findings of the study.

SAMPLE SIZE:
Two companies have been selected for the comparative analysis.

*LG

*Samsung

TYPE OF DATA:

*primary data will be collected through questionnaire. The no. of respondents will be 100.
*secondary data collected through previous literature published, e-books, journal articles

and authentic web page.

TOOLS TO BE USED:
*Questionnaires

*Computer extensions

PRESENTATION TOOL:

Data will be presented through graphs, tables,etc.

PROPOSED CHAPTER PLAN FOR THE STUDY:

Chapters No. Contents

Chapter 1 Introduction
Chapter 2. Review of literature
Chapter 3. Selected companies
Chapter 4. Analysis
Chapter 5. Conclusion
Chapter 6. References
REFERENCES:

Web references:
https://Ukessays.com

https//www.britannica.com

https://www.slideshare.com

https://www.scribd.com

journals:

Anuraj Nakarmi “Effect of Sales Promotion on Consumer Behavior”(2018)

“Analyzing the Influence of Sales Promotion on Customer Purchasing Behaviour” by Mahsa

Familmaleki, Alireza Aghighi and Kambiz Hamidi.(2015)

“Impact of sales promotion on consumer buying behavior towards colour television: an

empirical study” Dr. D.p. misra*, Dr. S.k. chaudhury.

“Impact of Sale Promotıon Technıques on Consumers’ Impulse Buyıng Behavıour towards

Apparels at Bangalore” by Salvi

“Analysing the Effects of Sales Promotion and Advertising on Consumer’s Purchase

Behaviour” by Ripon kumar chakrabortty.