ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 0976-7193 (Print) ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn.2349-2317/2014

www.elkjournals.com

“STUDY OF SALES PROMOTION TOOLS ADOPTED BY “MORE” AND IT’S IMPACT ON

CUSTOMER SATISFACTION”

Dr. Atul Kumar,

Associate Professor and Deputy Director, Siddhant Dr. Jena Joshi,
Institute of Business Management, Pune, Maharashtra, Assistant Professor, Siddhant Institute of Business
India. He is the corresponding author and can be reached at Management, Pune, Maharashtra, India
[email protected].

Dr. Vinaydeep Brar,

Associate Professor, SNG Institute of Management & Research, Pune, Maharashtra, India

ABSTRACT

The present study is based on different tools of sales promotional as adopted by supermarket chain of Aditya
Birla Retail Limited -“More”. This paper studies the impact of sales promotions on customer’ satisfaction
level as well as on their purchase intention with respect to various sales promotional tools applied by the
organized retail industry. The sampling is done through Non-probability Convenience Sampling method with
a sample size of 200 respondents. Data on the various promotional tools is collected through primary method
specifically through personal interview of the customers visiting the retail store - More. The study is based on
descriptive research design with a structured questionnaire furnishing information regarding behavioral
characteristic and demographic variables.

KEYWORDS
More, Organized retailing, Customer satisfaction level, Sales promotion, Customer purchase intention.

1. INTRODUCTION promotion including discounts, contests, schemes,

prizes, free gifts plays an important role in increasing
The retailing industry is driven by the the sales of the organized sales industry, market share
revenue generated through transaction happened with and tapping new customers. Sales promotion also
the customers which are driven by the intention of the helps in building customer loyalty and motivating
purchase of customers. Sales promotion plays an them for carrying out repurchase. The attractive
important part in influencing the customer’s schemes help in elevating customer satisfaction and
psychology and emotions. This persuades the thus further increase the word of mouth publicity.
customer for carrying out not only frequent purchases
but also in enhancing the number of goods purchased. The present study is carried out in “More”,
Implementation of different strategies of sales the retail store brand of Aditya Birla Retail Limited

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(ABRL). Its products include groceries, vegetable In this competitive era, it is important to
and fruits, personal care, general merchandise, and study and understand consumer's buying behavior so
home care. More believes in providing Extra- quality, as to develop a retail business. Studies have revealed
rewards, savings, care and choice. The four different that there was a change in consumers' buying
cornerstones of More are more- convenience, variety, behavior towards the retail sector due to varied
quality, and value. With more than 640 supermarket reasons (Sharma et al., 2012; Kumari, 2012).
outlets in all over India, the retail store provides a
good shopping experience to customers across India. 3. RESEARCH METHODOLOGY
In order to increase sales, to build the trust of
customers and to emphasize the need to repurchase, Based on the descriptive research design, the study
different sales promotional tools are applied. collects data through both primary and secondary
data. By using secondary data through websites,
2. REVIEW OF LITERATURE journals, magazines, books - research variables were
identified and a structured questionnaire with closed-
The literature and previous studies show that
ended questions was developed for carrying out the
there is a positive relationship between sales
personal interviews of the customers in More. Scales
promotion and the effect on consumer buying
like nominal, ordinal along with five points Likert
decisions. Specifically, the coupons and price
scale was used in framing the questions. Convenience
reduction are amongst the most extensively used
sampling was used to identify 200 respondents.
offers (Krishna and Zhang, 1999; Huff and Alden,
Analytical tools include percentage analysis. To find
1998; Leone and Srinivasan, 1996; Bawa and
out the degree of agreement and satisfaction of the
Shoemaker, 1987, Blattberg and Nelsin, 1991).
respondents, Kolmogorov-Smirnov One sample test
Sales promotion helps in communicating
is used. Bar graphs were used to represent the data.
with the intended target market and comprises of the
promotional activities that originate and stimulates
Objectives of the study
the sense of purchase (trial) as well as the interest of
1. To study different sales promotional tools
the customers for the products (Bagavathi Pillai,
adopted by More.
2007). At the same time, it doesn't include
2. To study the demographic variables of customers
advertising, personal selling, and publicity. The
visiting More.
distinctiveness lies in that it provides an extra
3. To analyze the impact of sales promotions on the
incentive for the action (Palmer, 2004).
purchasing intention of customers.
Shamout (2016) in the research, studied to
4. To study the level of customer satisfaction with
find out the effect of the frequently used tools of
respect to sales promotional tools adopted by the
sales promotion in the retail sector like buy one get
organized retail industry.
one free, coupons, price discount, sample and on
consumer buying behavior with respect to two
Research hypothesis
aspects; brand switching and customer loyalty. This
study was mostly based on the conceptual
framework, literature review and testing hypothesis  Hypothesis 1:
 Null Hypothesis Ho: There is no significant
which help in increased opportunity for future
influence of sales promotional tools on the
researchers to study furthermore in this field.
purchase intention of the customer in More.
De Pelsmacker and Maggie-Van den Bergh
 Alternate hypothesis H1: There is a significant
(2001) studied sales promotion as a technique which
influence of sales promotional tools on the
is aimed at increasing sales in a short period of time.
purchase intention of the customer in More.
It is lower in cost as compared to advertising and
offers good control. The important characteristics of
sales promotions are that it provides better value for  Hypothesis 2:
money and thus aids in getting instant responses.
Ndubisi and Oly (2006) studied sales  Null Hypothesis Ho: Customers are not satisfied
promotion and revealed that the technique helps in with sales promotional tools adopted by the
attracting new customers and sustaining loyal organized retail industry
customers and helps in persuading them to build  Alternate hypothesis H1: Customers are satisfied
stronger relations with the organization and also with sales promotional tools adopted by the
involves working on all the motifs used by the organized retail industry
producer to successful trade with the members of the
sales channel.

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ISSN 0976-7193 (Print) ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn.2349-2317/ 2014

Limitation of the study

4.2 Demographic Variables of Respondents
 The study was restricted to only ‘More’ It
used only a few customers and study was The demographic variables of respondents
limited to Pune city. which have been measured on nominal as well as
ordinal scales have been shown in Table 2.1 shows
that among all the 200 respondents, 51.5% were male
4. RESULTS AND DISCUSSION and rest 48.5% respondents were female. It can be
seen that 82% of respondents were married. 48% of
The descriptive data has been analyzed with the help respondents were of the age group of 31–50 years
of percentage analysis, bar chart representation, and and 62% of respondents were educated (Graduate and
Kolmogorov-Smirnov One sample test Post Graduate). 63% of respondents were working
and out of which, 43.5% belonged to salaried class
4.1 Different Sales Promotions Schemes Used By whereas 19.5% were from business class. 85.5% of
‘More’ respondents belonged to income group bracket of
more than one lakh per annum. Only 25.5% were
Table 1.1 provides the summary of different staying as joint family rest 74.5% belonged to the
sales promotional tools which are applied by ‘More’. nuclear family. Majority i.e. 68.5% of the
The data was collected through customers from respondents had family size comprising of 2-5
More. members.

It was found that in order to develop Table 2.1: Descriptive Statistics of Demographic
customer loyalty, More has come up with a scheme Variables of Respondents (Ref. Table 2.1)
of ‘club more’ membership in which many facilities
are provided like cardless convenience, additional 4.3 Behavioral Characteristics of Respondents
discounts on purchases, spend based gifts for Behavioral characteristics of respondents
members, tailor-made offers based on the shopping can be studied through response questions based on
needs, free membership for a lifetime, etc. Attractive the questionnaire for a personal interview. The
scheme for monthly shopping persuades customers to questions were based on multiple choice questions.
buy more than planned in a particular month which Table 3.1 and Table 3.2 reveals that the majority
can provide them free gifts. For stimulating sales, (60%) of the respondents took their own decision for
limited offers scheme is employed by the retail store purchase making, (40%) had to rely on additional
by offering a discount on merchandise for a specific information while making purchase decisions. 43%
period of time. Schemes like best buys of the month of respondents took the required information from
help in tapping new customers for the company’s advertising, 41% took from their friends/neighbors/
own brand by providing extra discounts. Schemes relatives, and the other 34% of respondents took the
like “Buy and Get Free” helps in increasing the sale information from their family members. 83.7% of
of specific products which are having lower sales. respondents looked for the information from
Schemes like giving discounts while buying bulk Television, 70.9% from Newspaper, and 37.2% took
purchase are provided to attract the customers to the information from pamphlets. Majority of the
motivate them to buy extra. In order to increase the respondents behaved in the following manner: in a
sales of some specific items, Combo pack scheme is month, majority i.e. 79% of respondents visited the
used. Some schemes are exclusively provided to retail outlet for more than 3 times, 44% spent Rs.
‘club more’ members to entice the customers to be a 2000-5000 per month and 51% bought the quantity
member of ‘More’. Own labeled- free samples are for the duration of one week. Majority of
distributed to test whether customers like the respondents’ i.e. 68.5% buying decisions was
products or not. More provides free gifts on specific influenced by their family members, majority 60% by
products and also gives gift hampers on some special their own self, 48% took it from
occasions to their loyal customers. Apart from neighbors/friends/relatives, and 44% because of sales
conducting attractive contests like lucky draw, promotion. Majority of respondents i.e. 53.5%
“More” also provides SMS alerts for timely bought all types of merchandise like grocery, frozen
intimation about different attractive schemes and foods, fruits, staples, vegetables, beverages, personal
provides free home delivery. care, and home care. Apart from these, more also
provides products related to home furnishing, sports
Table 1.1: Different Sales Promotional Tools and fitness, toys and stationery, luggage and bags,
adopted by ‘More’ (Ref Table 1.1) entertainment and IT and small appliances.

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ISSN 0976-7193 (Print) ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn.2349-2317/ 2014

Table 3.1: Descriptive Statistics of Behavioral 4.5 Satisfaction Level of Customers With Regards
Characteristics of Respondents (Ref. Table 3.1) To Sales Promotional Tools Adopted By ‘More’
In order to analyze customer’s satisfaction
Table 3.2: Descriptive Statistics of other level, customers were enquired about the sales
Behavioral Characteristics of Respondents (Ref. promotional tools of ‘More’ on the Likert five-point
Table 3.2) scale (highly dissatisfied to highly satisfied). To find
From table 3.3, it can be seen that majority of the out the degree of satisfaction between a set of the
respondents i.e. 62 considered brands as their first value observed and values specified by the null
preference, 53 considered quality as the second, 48 hypothesis, the Kolmogorov-Smirnov One-Sample
considered discounts as the third, 43 considered Test has been applied. Table 5.1 shows the calculated
quantity as a fourth preference, the scheme as fifth values of Kolmogorov-Smirnov D for all the
and again 59 considered quantity as sixth preference. variables. At the 5% alpha level, the critical value of
D is 0.096. As the calculated value of D is more than
Table 3.3: Cross Tabulation of Preference of the critical value of 0.096, the null hypothesis is
Respondents (Ref. Table 3.3) rejected. It implies that the customers are satisfied
with sales promotional tools adopted by the
organized retail industry.
4.4 The Influences of Sales Promotions on Table 5.1 : Kolmogorov-Smirnov D Value for each
Customer Purchase Intention Variable (Satisfaction Scale) (Ref Table 5.1)

Respondents were asked about the specific

questions on the Likert scale (ranging from strongly 5. CONCLUSION
disagree to strongly agree) and these statements were
studied to analyze the impact of sales promotions on More store tries to provide the experience of
the intention of customer’s purchase. Kolmogorov- complete shopping to customers and has come up
Smirnov One-Sample Test has been applied to find with quality products that are best in class, superior
out the degree of agreement between a set of the store experience with high-quality customer service.
different values observed and values specified by the More has rolled out Mission Happiness Project for
null hypothesis. Table 4.1 shows the calculated enabling their customer to experience customer
Kolmogorov-Smirnov D Value for all of the delight. Highly efficient store staff is employed and
statements. At the alpha level of 5%, the critical wide aisles are made to enable free access/
value of D is 0.096. As the calculated value of D is movement. It also believes in being environment-
more than the critical value of 0.096, the null friendly by switching the lighting from CFL to LED.
hypothesis is rejected. Thus, there is a significant More is the first grocery and food retailer in India to
influence on sales promotions on customer purchase. get the Food Safety Management System (FSMS)
certification. It has many of its own brands like
Table 4.1: Kolmogorov-Smirnov D Value for each Kitchen’s promise, Feasters, Selecta, more Life,
Statement (Agreement Scale) (Ref. Table 4.1) Bluearth, Kruff Jeans Company, more Choice,
Karinee, ChatterKids, Yo!, Incheels, Prarthana and
Vow. The study reveals that sales promotions attract
Fig 4.2 shows that majority of respondents i.e. 83% customers and results in increased buying and
accepted that the sales promotions persuade the furthermore in increased customer satisfaction. It
customers to visit ‘More’ supermarket. plays an important role in persuading customers to
spend more money with their increased frequency to
Fig 4.2 Percentage of customers visiting More’s visit More and thus encourages buying increased
outlet due to Sales Promotion (Ref Figure 4.2) quantity along with repurchase. Moreover, it can be
seen that sales promotions have a significant impact
Fig 4.3 shows that the majority of respondents i.e. on customer buying intention. Attractive sales
62% visited ‘More’ because of its sales promotion, promotional tools namely monthly schemes and
but 38% expressed that other retailers’ sales limited offers scheme, membership scheme, best
promotion attracted them to visit their outlet. buys of the month scheme, discount on bulk purchase
scheme, Buy & Get Free scheme, combo pack
Figure 4.3 Customers’ visiting retail outlets due to discount scheme has a positive effect on customer’s
sales promotion (Ref. Figure 4.3) buying behavior with increased sales of the organized
retail sector. Many exclusive schemes for

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loyal/member customers are arranged like prizes, Buying Behaviour”, Marketing Mastermind,
contests, rebates and free gifts. Additional facilities ICFAI University Press, Feb. 2010, pp. 21-24.
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customers to go for increased buying from retail Investigation of Consumer Response to Sales
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[14] Kumar, Atul (2012), “Store Image - A
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List of Tables:

Table 1.1: Different Sales Promotional Tools adopted by ‘More’

Sr. No. Sales Promotional Tools

a) Limited Offers Scheme

b) Best Buys of the Month Scheme

c) Clubmore membership Scheme

d) Monthly Shopping Scheme

1) Schemes
e) Discount on Bulk Purchase Scheme

f) Buy & Get Free Scheme

g) Exclusive Schemes for Clubmore members

h) Discount Scheme on Combo pack

2) Free Samples a) Yes, but only of the few more’s owned brand

a) Free gift on purchase of specific items

3) Gifts b) Gift hampers on special occasions like festivals

c) Shop for Rs. 8000/- in a particular period and get a free gift

a) Combo pack discount

4) Rebates b) Discount on Bulk Purchase

c) Discounts on the purchase of specific items

a) Get extra points on the purchase of specific items

5) Prizes
b) Save rupees and earned point

6) Contest a) Lucky Draw

a) SMS alerts to members about discounts & schemes

7) Additional Tools
b) Free home delivery

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Table 2.1: Descriptive Statistics of Demographic Variables of Respondents

Sr. No. Variable Sub-Variable Frequency (Percentage %)
Male 103 51.5
1) Gender
Female 97 48.5
< 21 23 11.5
21- 30 36 18.0
2) Age (Years) 31-40 55 27.5
41-50 41 20.5
51-60 27 13.5
> 60 18 9.0
Single 36 18.0
3) Marital Status
Married 164 82.0
Illiterate 5 2.5
Below 10th 18 9.0
4) Education Status 10th to 12th 53 26.5
Graduation 64 32.0
Post Graduation 60 30.0
Yes 126 63.0
5) Working Nature
No 74 37
Student 18 9.0
Salaried 87 43.5
6) Occupation Status Own Business 39 19.5
House Wife 42 21.0
Other 14 7.0
< 1 Lakh 29 14.5
7) Family Income (Yearly) 1 - 2 Lakhs 86 43.5
2 - 5 Lakhs 62 31.0
> 5 Lakhs 23 11.5
Nuclear 149 74.5
8) Nature of Family
Joint 51 25.5
2 -3 Members 46 23.0
9) Family Size 4-5 Members 91 45.5
6-7 Members 49 24.5
> 7 Members 14 7.0
Total 200 100%
Source: Primary data collection

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Table 3.1: Descriptive Statistics of Behavioral Characteristics of Respondents

Sr. No. Characteristics Sub-Characteristics Frequency (Percentage %)

Self 120 60.0

1) Purchase Making Decision
Other 80 40.0
Yes 102 51.0
2) Information Collection Decision
No 98 49.0
1 Time 7 3.5

2 Times 18 9.0
Frequency to visit outlet
3 Times 17 8.5
3) (Monthly)
4 Times 59 29.5

> 4 times 99 49.5

< Rs. 1000 32 16.0

Rs. 1000-2000 54 27.0

Money Spend (Monthly)
4) Rs. 2001-5000 88 44.0

> Rs. 5000 26 13.0

1 week 102 51.0

2 week 52 26.0
5) Quantity Purchased for a Duration
3 week 27 13.5

> 3 week 19 9.5

Total 200 100%

Source: Primary data collection

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Table 3.2: Descriptive Statistics of other Behavioral Characteristics of Respondents

Advertising 86 43.0

1) Sources of Information Family Members 68 34.0

Collection Neighbors/Friends/Relatives 82 41.0

Others 25 12.5
Television 61 70.9
Newspapers 72 83.7

Source of Information from Magazines 14 16.3

2)
Advertising Hoardings 18 20.9
Pamphlets 32 37.2
Others 12 14.0
Self 121 60.5
Family Members 137 68.5
Sources of Influencing Neighbors/Friends/Relatives 97 48.5
3) Buying Decision
Advertising 73 36.5

Sales Promotion 88 44.0

Fruits 29 14.5

Vegetables 36 18.0

Grocery 62 31.0

Types of Products Frozen Foods 14 7.0

4)
Purchased Beverages 27 13.5

Home Care 51 25.5

Personal Care 47 23.5

All 103 51.5

Source: Primary data collection

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Table 3.3: Cross Tabulation of Preference of Respondents

Preference Brand Quality Price Discount Scheme Quantity Total

1st 62 49 31 23 19 16 200

2nd 50 53 39 31 17 10 200
rd
3 35 39 43 48 21 14 200
th
4 29 22 33 34 39 43 200
th
5 11 17 25 28 61 58 200

6th 13 20 29 36 43 59 200

Total 200 200 200 200 200 200

Source: Primary data collection

Table 4.1: Kolmogorov-Smirnov D Value for each Statement (Agreement Scale)

Sr. No. Statements D Value

1 Sales Promotions influence customer purchase intention 0.20

2 Sales Promotions increase customer satisfaction level 0.18

3 Sales Promotions affect the frequency to visit an outlet 0.17

4 Sales Promotions play a vital role to spend more 0.17

5 Sales Promotions entice to repurchase 0.16

6 Customers purchase more quantity due to sales promotions 0.19

7 ‘More’ does adequate sales promotion activities 0.13

8 ‘More’ justifies its punch line: “Hamesha Extra” 0.10

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Table 5.1 : Kolmogorov-Smirnov D Value for each Variable (Satisfaction Scale)

Sr. No. Variable Kolmogorov-Smirnov D Value

1 Overall Schemes 0.20

2 Clubmore membership Scheme 0.17

3 Monthly Shopping Scheme 0.16

4 Limited Offers Scheme 0.15

5 Best Buys of the Month Scheme 0.17

6 Buy & Get Free Scheme 0.13

7 Discount on Bulk Purchase Scheme 0.16

8 Combo pack Discount Scheme 0.14

9 Exclusive Schemes for Clubmore members 0.18

10 Free samples 0.10

11 Gifts 0.14

12 Rebates 0.18

13 Prizes 0.16

14 Contest 0.12

15 Additional promotional tools 0.12

16 Overall sales promotion activities 0.21

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List of Figures

Fig 4.2 Percentage of customers visiting More’s outlet due to Sales Promotion:

Figure 4.3 Customers’ visiting retail outlets due to sales promotion

40