Impact of Seasonal Promotions on Customer

Satisfaction in e-commerce Industry

Ajith Naduvilveetil

Student Number: 10515942

Dissertation submitted in partial fulfilment of the requirements for the degree of

Master of Business Administration (General)

At Dublin Business School

Supervisor: Shaun Hayden

May 2020

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Declaration

I, AJITH NADUVILVEETIL, declare that this research is my original work and that it has never

been presented to any institution or university for the award of Degree or Diploma. In addition, I

have referenced correctly all literature and sources used in this work and this work is fully

compliant with the Dublin Business School’s academic honesty policy.

Signed: Ajith Naduvilveetil

Student Number: 10515942

Date: 20th May 2020

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 Acknowledgement

I would like to acknowledge my debt of thanks with gratitude to all the people for their advice and

encouragement. I would especially want to convey my thankfulness to my professor SHAUN

HAYDEN, who has guided and assisted me whenever I needed any help during the study. Finally, I

would like to thank my peers and family members who have given me immense support during

the conduction of the entire research study.

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Abstract

The aim of the research was to analyse the impact of e-commerce firms’ seasonal promotions on

the satisfaction level of customers. Correlation design was used for identifying the relationship

between the variables. Positivism philosophy, deductive approach and quantitative data analysis

was used. 50 online customers were selected using purposive sampling.

The results of the study are the seasonal promotions are important for improving brand awareness

and to influence purchase decision of customers. E-commerce firms providing free samples of

products and gift cards are not effective. Combo discount pricing, flash sales promotions, gift cards

and return policy have a significant impact on customer purchase intention. Free shipping offers

and regular discounts do not have a major level of impact on customer satisfaction level. On the

other hand, free samples, cash back offers, conducting contests for customers and limited period

discounts do not have an influence on customer’s purchase intention.

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Table of Contents

Abstract 4
Chapter 1: Introduction 9
1.1 Research context 9
1.2 Research question 11
1.3 Research objectives 11
1.4 Hypothesis 12
1.5 Research rationale 13
1.6 Research recipients 13
1.7 Research scope and limitations 13
1.8 Major contributions of the study 14
1.9 Organisation of the dissertation 14
2. Literature Review 16
2.1 Introduction 16
2.2 Importance of seasonal promotions to e-commerce industry 16
2.3 Importance of customer satisfaction to e-commerce firms 18
2.4 Various strategies of seasonal promotions in e-commerce sector 19
2.5 Impact of seasonal promotions on customer satisfaction in the e-commerce sector 22
2.6 Conceptual framework 25
2.7 Literature Summary 26
Chapter 3: Methodology 28
3.1 Introduction 28
3.2 Participants 28
3.3 Research design 29
3.4 Materials 32
3.5 Procedure 33
3.6 Data analysis 33
3.7 Ethical considerations 35
3.8 Summary 36
Chapter 4: Result 37
4.1 Introduction 37
4.2 Frequency Analysis 37
4.3 Descriptive Statistics 53

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 4.4 Inferential Statistics 56
4.5 Summary 63
Chapter 5: Discussion and conclusion 65
5.1 Introduction 65
5.2 Brief summary of findings 65
5.3 Statement concerning support or otherwise of hypothesis 67
5.4 Discussion of findings 68
5.5 Potential problems in the research 74
5.6 Strengths and weakness in study 74
5.7 Ideas for future research 75
5.8 Implications of the study 75
5.9 Conclusion of the study 76
5.10 Recommendations for e-commerce sector 77
Reference 79
Appendices 84
Appendix 1: Survey Questionnaire 84
Appendix 2: Correlation analysis - Impact of Seasonal promotion on customer satisfaction 89
Appendix 3: Comparative Analysis - Gender Difference in customer satisfaction level 90

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List of Figures

Figure 1: Conceptual framework 19

Figure 2: Participants’ gender 29

Figure 3: Participants’ age group 29

Figure 4: Customers always give more importance to seasonal promotion 30

Figure 5: Sales promotions improves brand awareness among customers 31

Figure 6: Flash sales promotions offered by online shopping sites are attractive 32

Figure 7: Customers always get free shipping offer from online shopping sites 33

Figure 8: Customers can return products without any extract cost 34

Figure 9: Customers get cashback offers for their online purchases during seasonal festivals 35

Figure 10: Online shopping sites offers free samples of new products 36

Figure 11: Customers get discount coupons from online shopping sites regularly 37

Figure 12: Online shopping sites offer Gift cards to encourage customers’ purchase intention 38

Figure 13: Limited period discounts are frequently offered by online shopping sites 39

Figure 14: Online shopping sites conduct contests for consumers during seasonal festivals 40

Figure 15: Customers get discount price for a set of items 41

Figure 16: Customers’ satisfaction level towards the seasonal promotions 42

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List of Tables

Table 1: Descriptive Statistics of the effectiveness of Seasonal promotion 43

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Chapter 1: Introduction

1.1 Research context

Background of the topic

Seasonal promotions are special sales promotion strategies used by organisation for a short term

around popular holidays and festivals. It helps attract customers through gifts, discounts, vouchers

and samples. This aids in increasing the satisfaction of the customers towards the e-commerce

companies and motivates their buying intentions. It facilitates in enhancing the customer loyalty

towards the e-commerce brand (Sardana, Talwar and Gulati, 2018). In 2019, the e-commerce sales

in Ireland was €2.2 billion which was 12.9% rise compared to the previous year. There is tough

competition between the e-commerce companies with several international retailers and local

retailers making their presence in the e-commerce market (Kennedy, 2018). In order to beat the

market competition and attract more customers to the online store, the e-commerce companies in

Ireland offer attractive seasonal promotions throughout the year. This is instrumental in gaining

the satisfaction of the customers to the e-commerce brand.

Seasonal promotions are that which are being used by firms during March Madness, World Cup,

Super Bowl, Christmas, Mother’s Day and Black Friday. Firms develop a promotional calendar

that aids the firm to increase their sales (Fuggetta, 2012). E-commerce in the industry is found to

run promotional activities during Halloween, Thanksgiving and many more. Promotions could be

planned for an entire year for these seasons since they are recurring every year during the same

month. This helps in influencing the satisfaction of customers (Nah and Siau, 2019). Thus, it could

be seen that e-commerce firms influence customers’ satisfaction through seasonal promotions.

Average e-commerce industry growth in Ireland during the year 2014 to 2019 was 9.1%. The e-

commerce industry is found to sell numerous products via online. Upward trend towards online

shopping continues and the strong growth is being attributed to increasing mobile connections and

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fixed broadband. Number of business operating in the industry is 9,759 and the industry employs

18,772 and market size is €2 billion. Amazon holds the largest market share in the e-commerce

sector of Ireland (IBIS World, 2019). Revenue is the e-commerce sector is $3,701 million USD in

the year 2020. By the year 2024 the annual growth rate is expected to reach US $4,283 million by

the year 2024. Fashion is the largest segment that is being sold through online platforms. 68.0% is

the user penetration in the year 2020. By the year 2024 it is expected to reach 77.5%. US $ 915.23

is the average revenue per user in Ireland’s e-commerce sector (Statista, 2020). Thus, it could be

seen that the industry in Ireland has been forecasted to grow in the future. The industry contributes

to the economy through employment and revenue generation. This industry is found to play a vital

role in the economy of Ireland. Thus, this e-commerce industry has been used as the case study in

the research.

Problem statement

Seasonal fluctuations have an impact on the sales of an organisation, the demand among customers

for various products vary due to seasons. Right from toys to goods every product faces sales

fluctuations during seasons (Markowitz, 2017). E-commerce industry in Ireland is that which sells

almost all products online. Hence, the seasonal fluctuations would deeply impact the sales of e-

commerce companies. Hence, as identified from the background section, seasonal promotions

could be used by the firms. As identified from the research of Sardana, Talwar and Gulati (2018),

customer satisfaction is improved due to seasonal promotions. Whether the e-commerce firms in

Ireland improve their customer satisfaction through seasonal promotions in unknown hence, this

research has been carried out.

Current relevance of the topic

By 2024, the e-commerce sales in Ireland are expected to touch €3.8 billion which is double to

€1.05 billion that was registered in 2010 by posting a 11.2% CAGR. This has shown the high

10
adoption of the online shopping by the customers in Ireland (Taylor, 2019). Considering the high

revenue potential available in the e-commerce sector of Ireland for the local and international e-

commerce companies operating in Ireland, the e-commerce companies are focusing on various

seasonal promotional strategies in order to boost their sales and increase the market share while

enhancing the customer satisfaction levels. This helps in greater profitability for the e-commerce

companies.

Research gaps to be addressed

It was identified that there are several researches conducted to examine the impact of seasonal

promotional on customer satisfaction in the e-commerce sector. Nevertheless, they were focused

on different sectors or other countries. However, there was no research that was undertaken in the

context of Ireland. Hence, this research shall address this gap.

1.2 Research question

Main research question

● What is the impact of seasonal promotions used by the e-commerce organisations on

customer satisfaction?

Sub research questions

● What are the various strategies of seasonal promotions used by e-commerce organisations?

● How to effectively improve the seasonal promotional strategies in order to improve the

customer satisfaction in e-commerce sector?

1.3 Research objectives

● To determine the importance of seasonal promotions in e-commerce industry

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 ● To identify the various seasonal promotional strategies used by the e-commerce

organisations

● To evaluate the impact of seasonal promotions on customer satisfaction in the e-commerce

industry

● To recommend way to effectively utilise seasonal promotional strategies to improve

customer satisfaction in e-commerce sector

1.4 Hypothesis

The following ten hypotheses were developed using the seasonal promotional factors covered in

the literature review.

H1: There is a significant relation between attractive flash sales promotions and Customer

satisfaction

H2: There is a significant relation between free shipping offer and Customer satisfaction

H3: There is a significant relation between return policy and Customer satisfaction

H4: There is a significant relation between cash back offers and Customer satisfaction

H5: There is a significant relation between free sample offers and Customer satisfaction

H6: There is a significant relation between discount coupon offers and Customer satisfaction

H7: There is a significant relation between gift card offers and Customer satisfaction

H8: There is a strong correlation between limited period discounts and Customer satisfaction

H9: There is a strong correlation between seasonal contest and Customer satisfaction

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H10: There is a strong correlation between combo discount price offers and Customer satisfaction

1.5 Research rationale

The current research was undertaken in order to analyse the role of the seasonal promotional

strategies implemented by the various organisations in the e-commerce sector. It shall identify how

effective were the seasonal promotional strategies of the e-commerce in enhancing the satisfaction

of the customers in the e-commerce industry.

This research will offer key insights to the e-commerce companies in Ireland on the effectiveness

of the seasonal promotions adopted by them and the extent to which it will attract the customers

to their e-commerce website and boost the customer satisfaction levels.

As I am an active e-commerce customer, the insights that I obtain from this research will contribute

to me professionally with regard to developing seasonal promotional strategies that are effective

to enhance the satisfaction of the customers in the e-commerce industry in my future career. This

will help me gain the perspective of the customers in the e-commerce sector.

1.6 Research recipients

The present study will be beneficial for the e-commerce companies in Ireland and more

specifically, the management and the sales and marketing departments of the Irish e-commerce

companies that are responsible for the development and implementation of the seasonal

promotional strategies in their respective e-commerce companies. The study will also be useful for

researcher who has the intention of performing researches on seasonal promotions and e-

commerce sector of Ireland.

1.7 Research scope and limitations

Research scope

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This research shall focus only on the seasonal promotional strategies for the e-commerce

companies in Ireland and its impact on the customer satisfaction levels.

Research limitations

On account of the limitations in time and resources to perform this research, the researcher

employed a small sample size of 50. This also led to the researcher adopting the survey technique

to collect the research data which is cost effective and faster. The findings of this research will

only be applicable to the e-commerce companies in Ireland. The research would not be suitable

for other industries and would be only applicable for e-commerce sector. The research objectives

and aim is broad since the entire e-commerce industry had been considered by the researcher.

1.8 Major contributions of the study

The research focused on testing the research hypothesis that analysed the relationship between the

seasonal promotions and satisfaction among the customers in the e-commerce sector of Ireland

from the basis of the research results. This study shall offer empirical evidence on the effectiveness

of the different seasonal promotional strategies that are adopted by the e-commerce companies in

Ireland towards increasing the customer satisfaction levels. The study would render information

for the e-commerce firms operating in Ireland, they would be able to make use of the study for

improving their seasonal promotions. The study shall also prove useful for researchers in a way

that this provides information about seasonal promotions that are specifically related in Ireland e-

commerce firms.

1.9 Organisation of the dissertation

Chapter 1: Introduction – The first chapter offers an overview of the research context. It specifies

the research objectives and research questions that was focused. The rationale, scope and

limitations of the research are also discussed.

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Chapter 2: Literature Review - This chapter shall present the critical review of the literature on

the research topic provided by different researchers on this research area in accordance to the key

themes focused in this study.

Chapter 3: Methodology – The third chapter shall discuss the different processes and procedures

that were deployed by the researcher to carry out this research including the data collection method

and data analysis method.

Chapter 4: Results – The fourth chapter shall present in a comprehensive manner the results that

were generated by the current study.

Chapter 5: Discussion – The fifth chapter shall discuss in detail the findings obtained in this

research which is compared with the relevant literature. This chapter shall also present the main

conclusions derived from the research and recommendations shall be offered.

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2. Literature Review

2.1 Introduction

Impact of seasonal promotions on customer satisfaction in the e-commerce sector was analysed in

the current research. The literature chapter is divided into numerous themes that focus on certain

aspects that revolve around the topic to be researched. The themes have been derived from the

objectives and research questions that have been framed in the research. The themes are

importance of seasonal promotions and customer satisfaction, various strategies of seasonal

promotions used in the e-commerce industry and impact of seasonal promotions on customer

satisfaction in the sector. Peer-reviewed journal articles were used for gathering required

information on these themes.

2.2 Importance of seasonal promotions to e-commerce industry

The descriptive research carried out by Sardana, Talwar and Gulati (2018) using secondary data

identified that seasonal promotions involves directing marketing efforts towards specific global or

national holidays or major events in order to generate higher sales for the specific products and

services that are in demand for each season from the e-commerce customers. It was identified that

Christmas, New Year, Valentine’s Day, Easter and Halloween are seasons that are highly popular

for the seasonal promotions. The survey conducted by Shamout (2016) on 200 customers showed

that seasonal promotions are instrumental in showcasing the season specific products for the

customers. In addition, it helps in boosting the online traffic for the e-commerce sites by putting

automatic buying pressure in the customers in order to encourage them to engage in spontaneous

purchases. Hence, it is clear from Sardana, Talwar and Gulati (2018) that seasonal promotions are

highly valuable marketing tools used by the different e-commerce companies to generate higher

sales for the different seasons in the year whereas Shamout (2016) identified that the seasonal

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promotions are used by the e-commerce companies to showcase new products and promote

spontaneous purchases by the customers in the e-commerce industry.

The study by Sujata and Menachem (2017) on the data obtained from the seasonal promotions

undertaken by online retailers such as Amazon, Flipkart and Snapdeal from 2011 to 2016 in India

clearly identified that the seasonal promotions facilitated in generating massive amount of sales

and revenue for the online retailer in limited time that are held just before a festival season. It helps

create better brand image and exposure. It serves as the time to gain new customers while clearing

out the excess inventory help by the online retailer. The systematic review by Akter and Wamba

(2016) indicated that the seasonal promotions offered by the e-commerce companies are beneficial

in encouraging the seasonal buying behaviour of the customers, as they are motivated to capitalise

on the various price based and non-price based seasonal promotions that are offered by the e-

commerce companies to its customers. It is evident from the views of Sujata and Menachem (2017)

that the e-commerce companies use the seasonal promotions to boost their revenues for each

season through greater brand exposure and acquisition of new customers by the attractive seasonal

promotions offered. On the other hand, Akter and Wamba (2016) identified that the seasonal

promotions are beneficial for the e-commerce companies to stimulate the customer buying

behaviour through the price based and non-price based seasonal promotions.

Thus, e-commerce companies are found to place huge significance on the vital marketing tool of

seasonal promotions to help showcase new products and promote spontaneous purchases. It is

beneficial in promoting greater brand exposure and clearing out old inventory, thereby, leading to

higher profits for the e-commerce companies. It also aids in attracting new customers and causing

customers to buy the seasonal based products and services from the e-commerce companies.

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2.3 Importance of customer satisfaction to e-commerce firms

The survey on 380 online customers in Colombo, Sri Lanka by Perera and Sachitra (2019)

indicated that the customers of the online retailers are satisfied with the e-commerce company

when they are provided with a wide range of products at low cost and different discounts and

promotions. This includes free delivery, easy returns policy, special discounts and attractive

promotions. This helps in ensuring that the organisations in the e-commerce sector benefit from

higher sales and revenue. According to the research by Khalid, Lee, Choi and Ahn (2018) on the

e-commerce sector of Saudi Arabia through the survey of 149 e-commerce customers, it was seen

that the e-commerce customers are satisfied when they find attractive prices and good quality

products on a simple e-commerce website. This is instrumental in lifting the profits of the e-

commerce companies by influencing the customer buying behaviour. It is evident from the views

of Perera and Sachitra (2019) that the e-commerce firms are constantly looking to enhance the

satisfaction of its customers to beat the stiff competition in the market. In addition, Khalid, Lee,

Choi and Ahn (2018) pointed out that customer satisfaction is deemed to be highly important for

the e-commerce companies to enhance its sales and profits.

The online survey on 300 individuals in the online market of Serbia by Vasic, Kilibarda and Kaurin

(2019) identified that e-commerce companies look to enhance the satisfaction of its customers by

focusing on offering high quality products, security, shipping, attractive pricing and information

availability in order to attract more customers to the organisation. The personalised website, user

friendliness, easy navigation, product range, various shipping facilities and different payment

options are also instrumental for the e-commerce companies to provide a good online shopping

experience for the customers of the e-commerce industry to help increase the customer satisfaction

levels. The quantitative study by Vakulenko, Shams, Hellström and Hjort (2019) on 250 research

participants in Sweden pointed out that the e-commerce companies strive to boost the customer

satisfaction levels in order to make its current customers become loyal to the online retailer.

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Additionally, the high satisfaction and loyalty of the online customers are beneficial in influencing

the repeated purchase decisions of the satisfied and loyal customers of the e-commerce companies.

It is clear from the statements of Vasic, Kilibarda and Kaurin (2019) that customer satisfaction is

important for e-commerce companies to attract more customers whereas Vakulenko, Shams,

Hellström and Hjort (2019) mentioned that it is important to convert them to loyal customers.

Thus, the organisations in the e-commerce sector are found to place huge significance on

enhancing the customer satisfaction levels. This is attributed to the fact that a satisfied customer

base with the overall shopping experience delivered by the online retailer ensures a loyal customer

base. This will help in considerably increasing the sales, revenue and profits earned by the e-

commerce companies through a highly satisfied set of customers. It was also seen that there are

various aspects that contribute to the satisfaction of the online customers to the e-commerce

companies such as product range, quality, prices, promotions, shipping and payment options.

2.4 Various strategies of seasonal promotions in e-commerce sector

The research carried by Shamout (2016) showed that e-commerce companies are now increasingly

using flash sales such as the lightning deals and deal of the day for specific products in the various

product categories in order to bolster the sales and revenue for the selected period. This trend is

now seen in the sales of new smartphones for a limited period offer extended to the customers.

According to the study of Sheikh and Basti (2015), the e-commerce companies offer special

seasonal promotional offers such as free returns and free shipping for all orders from customers

for a long duration around the season. This serves in attracting customers towards buying from the

online retailer, as they do not have to pay extra delivery charges and avail special discounts on the

products purchased from the online retailer. It is clear from the views of Shamout (2016) that the

seasonal promotional strategies that are deployed by the organisations in the e-commerce sector

include flash sales while Sheikh and Basti (2015) identified that free returns and free shipping that

19
are very popular among the customers of the e-commerce companies, particularly during the

festive period.

According to the study by Al-Zyoud (2019), Black Friday is the day that comes after Thanksgiving

which is very popular for shopping among customers across the world. This day is known for its

steep discounts and extensive promotions in order to attract the customers towards purchasing

product for a lower price. Discounts are found to aid customers to take purchase decisions

instantly. The research carried out by Thomas and Peters (2011) also focused on the popular

holiday of Black Friday in the USA. It was seen that the high discounts offered for the early

shoppers such as early bird specials and the limited period discounts on select products were well

received by the customers, particularly, the women customers. It can be said from the statements

of both Al-Zyoud (2019) and Thomas and Peters (2011) that Thanksgiving and Black Friday are

key holidays that e-commerce companies use to offer seasonal promotions such as discounts and

early bird offers.

The study undertaken by Khouja, Pan and Zhou (2016) showed that for online retailers, holiday

season accounts for most of their sales and are considered as peak season sales for their entire year.

During the holiday seasons, the retailer has sufficient information about the demand by calculating

the previous year’s holiday sales. This helps the retailer to determine the product discount that

could help the e-commerce firm to maximise their profit by offering special discounts and stocking

up on the products that are in high demand among the customers. In the research carried out by

Jiang, Shang, Liu and May (2015), it was seen that the seasonal promotions such as gift cards and

cents off are being used by the customers while making purchases during the festival seasons in

the year. Almost every product available in the market place is available through online. Hence,

the e-commerce industry offer numerous promotional activities. The end of season sale is being

carried out by firms that specifically focus on price reduction for the different seasons in the year.

Thus, Khouja, Pan and Zhou (2016) identified that seasonal promotions are offered during the

20
holiday season and Jiang, Shang, Liu and May (2015) mentioned that gifts and cents off are various

seasonal promotional strategies for offering seasonal promotions to e-commerce customers during

the end of season sale.

According to the research by Tong, Lai and Tong (2012), the multi-ethnic population in Malaysia

has led to e-commerce companies holding six seasonal promotions in a year. They focus on the

Ramadan month for the Muslims, Diwali for the Indians, Chinese New Year Sales for the Chinese,

Retail Anniversary Sale, Christmas Sale and Malaysia Mega Sales Carnival. The research of Jiang,

Liu, Shang, Yildirim and Zhang (2018) identified that seasonal promotions is a short term

marketing strategy that are instrumental in improving sales of the online firms considerably. This

has led to e-commerce companies commercialising several holidays and special days to sell its

products through the seasonal promotions. This includes Men’s Day, Daughter’s Day, Women’s

Day and Valentine’s Day. For instance, Alibaba in China introduced Singles day on November 11

(11/11) and December 12 (12/12) for increasing and balancing customer traffic. It can be identified

from the views of Tong, Lai and Tong (2012) that the e-commerce companies hold seasonal

promotions to cater to the multi-ethnic population in the country while Jiang, Liu, Shang, Yildirim

and Zhang (2018) pointed out that the e-commerce companies in China are introducing seasonal

promotions for holidays such as Singles Day and Men’s Day.

The study conducted by Familmaleki, Aghighi and Hamidi (2015) indicated that the e-commerce

companies offer various seasonal promotions such as price discounts, free samples, coupons, gifts,

member card, extended warranty period and purchase in instalments. They help in attracting the

customers to the e-commerce website during the festival period and effectively manage the

competition with its competitors in the e-commerce market. Additionally, the research by Shamout

(2016) identified that e-commerce companies are now offering cashback offers to customers for

availing their seasonal promotions, as they look to mitigate the high competition in the market by

attracting more customers to its online store. This short term strategy of seasonal promotions

21
engaged by the e-commerce companies has proven to be beneficial both for the customers and the

organisation. It is evident from Familmaleki, Aghighi and Hamidi (2015) that the e-commerce

companies are using various techniques for its seasonal promotions extended to its online

customers such as free samples, lower prices and gifts and Shamout (2016) identified that cashback

offers are also offered. This serves the dual purpose of attracting customers and gaining a

competitive edge in order to beat the competition by the e-commerce company in the highly

competitive e-commerce market.

It can be understood that there are a wide range of seasonal promotional strategies that are adopted

by the organisations in the e-commerce industry. This includes flash sales, lightning deals, deal of

the day, free returns and free shipping. In addition, the other seasonal promotions are cashback,

free samples, coupons, gift cards, extended warranty period, purchase in instalments, limited

period discounts and early bird offers.

2.5 Impact of seasonal promotions on customer satisfaction in the e-commerce sector

The study of Jiang, Liu, Shang, Yildirim and Zhang (2018) mentioned that with the advent of

internet, e-commerce or online shopping trend is growing among the customers. Seasonal

promotions that offer discount on pricing are found to influence the customers for enhancing sales.

Decreasing dissatisfaction of customers is found to be the aim of the e-commerce firms and this is

possible through promotions. According to the research work of Al-Zyoud (2019), the shopping

spree across the globe during Black Friday and customers are found to prefer online shopping than

visiting brick and mortar stores. The holiday seasons are when people are increasingly involved in

shopping behaviour thus, the seasonal promotions are attractive to the individuals and helps in

improving their satisfaction level. Different views regarding seasonal promotions are being

exhibited by the above research studies. The research by Jiang et al (2018), exhibits the fact that

seasonal promotions helps in supressing dissatisfaction of the customers of the e-commerce

22
industry. On the other hand, Al-Zyoud (2019) revealed that seasonal promotions improve

satisfaction of customers who engage in online shopping to avail the seasonal promotions during

the various popular holiday seasons in the year. Though different in perception, the studies are

found to agree on the impact of seasonal promotions on customer satisfaction.

The study carried out by Mathe-Soulek, Krawczyk, Harrington and Ottenbacher (2015) clearly

highlighted that the new product promotions are found to have positive impact on the e-commerce

customers. However, these vary with seasonal conditions effects. For instance, erratic weather

during the various seasons of the year have hampered the effectiveness of the seasonal promotions

in boosting the customer satisfaction levels in the e-commerce industry. Nevertheless, seasonal

price based promotions are found to be attracting customers. Perceived price and quality are found

to have positive impact on customer satisfaction. According to Hwangbo, Kim and Cha (2018),

fashion products are always seasonal and the general preference of the customers is found to be

changed over the year. In accordance with customers, promotions also changes and these in turn

influence customer satisfaction. The e-commerce companies offer special discounts on clothing

items for the entire family for specific seasons and festivals in order to boost their customer

satisfaction levels towards the e-commerce store. Thus, it is clear from the studies of Mathe-Soulek

et al (2015) and Hwangbo et al (2018), that seasonal promotions influence the customer

satisfaction level among the customers of e-commerce companies. However, it could also be seen

from the research of Mathe-Soulek et al (2015) that, weather conditions might decrease the impact

of seasonal promotions on customers’ satisfaction. This study had rendered information on both

positive and negative stance, this would be instrumental for the research to identify the impact of

seasonal promotions on e-commerce customers.

The study by Das, Rao, Kamath and Prasad (2019) on 50 e-commerce customers identified that

the seasonal promotions offered by the e-commerce companies have been instrumental in

enhancing the satisfaction of its customers by offering value to them and to promote future sales

23
among the customers for the organisation. This causes even irregular customers of the e-commerce

brand to be drawn towards buying from the e-commerce company in order to avail their seasonal

promoted products and services. However, when the seasonal promotions ends, there is a high

likelihood for these irregular customers to return to their preferred brand. The research of Khouja,

Pan and Zhou (2016) showed that through the seasonal promotions, customers are able to purchase

sufficiently and they satisfy their wants and need of the season, as the e-commerce companies offer

them various products and services that are essential for the specific season or holiday in the year.

These help the customers to improve their satisfaction level, as the e-commerce store serves as the

one stop store to meet all the festival or season needs for the customers. In addition, the e-

commerce firm stocks more products to satisfy the holiday product redeemers. It can be argued

based on the study of Das et al (2019), that the seasonal promotions are instrumental in attracting

customers including the irregular customers of the e-commerce company. However, retaining such

irregular customers is not possible with the help of seasonal promotions. The studies of Das et al

(2019) and Khouja et al (2016), clearly does agree on the point that seasonal promotions influence

customer satisfaction.

The research of Familmaleki, Aghighi and Hamidi (2015) clearly indicated that the e-commerce

companies offered seasonal promotions for its customers in order to encourage the buying

behaviour of the customers by satisfying them with incentives offered through seasonal

promotions that cause huge satisfaction for the customers. This facilitates the e-commerce

companies in retaining its existing customers while attract new customers towards its online store.

In addition, Sheikh and Basti (2015) identified that the seasonal promotions of the e-commerce

companies helps boost the sales volume and profits generated by the e-commerce companies

during the festival seasons in an accelerated manner by effectively satisfying its customers. From

the research of Familmaleki et al (2015) and Sheikh and Basti (2015) it is clear that seasonal

promotions do impact satisfaction of customers by influencing their purchase behaviour. This

24
perception is quite new when compared with all other researches such as Khouja et al (2016) and

Das et al (2019).

It is clear that the seasonal promotions are an effective marketing tool that is used by e-commerce

companies to offer value to the customers and attract them to the online store by offering them

with a wide range of seasonal promotions during the different seasons and holidays of the year.

This has been instrumental in gaining the satisfaction of the customers towards the e-commerce

companies through the attractive incentives offered to the customers of the highly competitive e-

commerce market.

2.6 Conceptual framework

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Figure 1: Conceptual framework

Source: Adapted from the study

2.7 Literature Summary

The current research was performed in order to determine the impact of seasonal promotions on

customer satisfaction in the e-commerce industry. It was identified that both seasonal promotions

and customer satisfaction are highly significant for the organisations in the e-commerce sector to

help increase its sales and profits. The different seasonal promotional strategies used by the e-

commerce companies include flash sales, coupons, gifts, membership card, cents off, free shipping

and free returns. It was evident in the above literature review carried on the research topic that the

seasonal promotions are used by the e-commerce companies in order to have a significant impact

on the satisfaction levels of the customers. This is attributed to the fact that it helps in attracting

the customers through the various incentives provided to the customers through the seasonal

promotions in order to offer high value to the customers and motivate them to buy the products

from the online retailer for the various festival seasons in the year. The next chapter shall present

the results generated in this research in a detailed manner.

26
27
Chapter 3: Methodology

3.1 Introduction

Analysing the impact of seasonal promotions on customer satisfaction in the e-commerce sector is

the aim of the study. For being able to perform this research, suitable research methods should be

applied. Explanation for the methods that were used in the study is being portrayed in this chapter.

Information pertaining to participants, design, materials, procedure, data analysis and ethics are

elucidated in this chapter.

3.2 Participants

The population of the study was customers of online retail firms, it is quite obvious that the retail

firms and their customers are more in number. Practically including everyone in the research is

impossible. Hence, a sample from the population was selected using a sampling method. The

research requires collecting information from customers who possess knowledge or experience of

using seasonal promotions offered by the e-commerce firms. Without which the respondents’

response would be unreliable. Thus, purposive sampling was used in the research. Since,

purposive sampling is that which is being used by the researchers for selecting the respondents

based on their knowledge and/or experience. But, the respondents’ willingness to participate is

important (Tashakkori & Teddlie, 2003). Extreme or deviant case strategy in purposive sampling

helps to select information rich sources because they are outstanding (Patton, 2002). This strategy

helped in selecting customers who possess the information related to seasonal promotions provided

by the online retailers. Thus, the respondents were not forced to participate even if they were

exposed to seasonal promotions.

By making use of purposive sampling, 50 online customers were selected. The participants were

approached through social media networks and public places. The participants were selected, post

the researcher asking them if they have come across seasonal promotions of online retail firms.

28
After which, the respondents would be included in the survey process. This being an online survey,

the link was sent to them through social media platforms.

Participants from both the gender and above the age of 18 were included in the study, no special

treatment was given to any research participants. The participants participated in the survey that

analysed the impact of seasonal promotions of e-commerce sector on customer satisfaction. They

were not provided any money for participating in the survey this was absolutely made clearer to

them. Gender split was not made during survey process, only after the response was collected the

gender split was made to analyse the gender difference in customer satisfaction. The customers

should have been from Ireland and customers from other countries were not included in the survey.

People below the age of 18 were not included in the study and those who did not reside in Ireland

were not included in the research.

3.3 Research design

3.3.1 Research design

Correlational research design was used in the study for being able to identify the relationship that

exists between two or more variables. Statistical analysis such as Pearson correlation is being used

for determining the degree of relationship between the variables. This design is also suitable for

testing the hypothesis (Privitera, 2015). Thus, since, this design allows the usage of statistical tools

and aids in hypothesis testing, this research design was used in the study. Moreover, the research

focuses on identifying the relationship between seasonal promotions and customer satisfaction,

that is relationship between two variables, thus this design was found to be most suitable.

Hypothesis testing was also possible due to the application of this research design. The dependent

variable of the research is customer satisfaction and independent variables are the various seasonal

promotions of ecommerce companies.

3.3.2 Research strategy

29
Survey research strategy is a strategy that allows the researcher to make use of numerous

instruments. The instruments that could be used are questionnaire, open-ended questions or even

both. These instruments would be used in this type of strategy for collecting information from

sample population. This strategy is mostly used for exploring and describing human behaviour

(Ponto, 2015). Thus, survey research strategy was used in the study the study since, questionnaire

was the instrument used for collecting the required information from sample population. This

strategy allowed the usage of statistical tools for answering the research questions. Customer

satisfaction is a human behaviour, hence in-order to describe and explore this variable, survey

research strategy was found to be the most suitable strategy. Survey research strategy is that which

was helpful in deploying correlational research design since measurement of variables was easy

with the help of survey research strategy.

3.3.3 Research Philosophy

Positivism philosophy is that which helps in performing management researchers. They also allow

the usage of survey or experiments. The philosophy allows the researcher to be independent of the

research and the research helps in progressing by making use of hypothesis. Statistical methods

would be used for generalising the outcomes of the research (Ramanathan, 2009). Thus, positivism

philosophy was used in the study since, it prevents the researcher from interfering with the research

of identifying the impact of seasonal promotions on customer satisfaction. Survey research strategy

was used in the study and this called for the usage of statistical tools for presenting research

outcomes.

Other philosophy such as interpretivism is not used since the research uses quantitative research

methodology which requires objective analysis of the data with no subjective analysis. It is to be

noted that the interpretivism is used when the research follows qualitative research strategy where

there is necessity to understand the data from subjective point of view. Interpretivism is not found

30
to be suitable when the research is purely empirical with no place of subjective analysis

(Chowdhury, 2014). Hence, Interpretivism is not selected since it is not suitable to the research

elements selected for this study.

Thus, it could be seen that both survey and statistical usage was supported by this philosophy

hence, this method was deployed.

3.3.4 Research Approach

Deductive approach allows the researcher to make use of scientific approaches for testing a theory.

Quantitative data alone can be used for deductive approach and not qualitative data. The research

also makes researcher to be objective and be independent of the research. This approach allows

the researcher to measure facts (Collins, 2010). Hypothesis had been developed based on the

insights obtained from the literature review that aims at identifying the relationship between

seasonal promotions and customer satisfaction. Survey was performed that helped in quantifying

data. This made deductive approach to be applied for testing the hypothesis. This, approach allows

testing of hypothesis which corroborates with the characteristics of positivism philosophy.

Deductive approach helped in identifying the relationship between the independent and dependent

variable.

Other approach such as inductive approach is not suitable since the research identifies the

research hypothesis before data collection and tries to check the validity of the hypothesis by

utilising the collected data. Unlike, deductive hypothesis, inductive approach is more concerned

with development of new theories out of the collected data. Deductive approach assists the

researcher to check the theoretical paradigm that exists in the contemporary research and apply the

collected data towards the identified theory. Thus, it is evident that the inductive approach is not

suitable for the research follows the strategy of identifying the hypothesis from existing theoretical

framework and validating the identified hypothesis by utilising the collected data.

31
3.4 Materials

Primary data collection methods help in tailoring to the needs of the research. Data to be collected

could be determined by the researcher. Interviews and questionnaires are the most commonly used

methods in social researches (Houser, 2009). This method was used for gathering information from

customers of online retail firms. The response of the customers pertaining to their satisfaction with

seasonal promotions was obtained only with the help of primary data collection method. Research

strategy used was survey research strategy hence, it was only possible to make use of primary data

collection method. Online survey was used in the research for being able to gather large data from

large number of participants, faster by incurring less cost.

Questionnaire is the instrument that is being used most commonly on researches. The

questionnaire might comprise of both open-ended and close-ended questions. Codes are mostly

used in close-ended questions. The reliability of the responses is increased by asking the same set

of questions to participants. The questions must be unambiguous and clear for easier understanding

(Cargan, 2007). Questionnaire was the material used in the research, the questionnaire was close-

ended and structured. Literature review was used for developing questions. 5 point Likert scale

was used for coding the questionnaire which was easier for performing statistical analysis.

Strongly agree (5), agree (4), neutral (3), disagree (2) and strongly disagree (1). Questions

pertaining to seasonal promotions and customer satisfaction alone were included in the survey.

(Refer appendix).

The total number of questions included in the questionnaire is 15. The questionnaire comprised of

4 sections, demographics, questions related to importance of seasonal promotions, seasonal

promotional strategies and impact of seasonal promotions on customer satisfaction. Validity of the

questionnaire was ensured by obtaining the data from e-commerce customers who have previously

32
come across seasonal promotions of the companies. The questionnaire was self-administered by

the researcher to gather relevant answers to the objectives and questions.

3.5 Procedure

Almost everyone are now using online shopping website for purchasing hence, the researcher

decided to approach random people in public places. They were first informed verbally for

determining if they had experience of online shopping. Before beginning the survey, the

participants were informed about the purpose of performing the study. Only after which, the online

survey link was shared with them through social media networks. On receiving the link, the

customers provided their response to the questions and submitted their questionnaire online. The

submitted responses were fed to the SPSS software for performing correlation analysis to

determine the association between seasonal promotions and customer satisfaction.

Informed consent is important while, there was no signed consent obtained, information was

provided to the participants verbally and the first page of questionnaire comprised of clear

statement of consent. The verbal information conveyed by the researcher was that this was an

academic research and they are being asked to participate since, they possess knowledge about the

study. Their responses are greatly valued and that the outcome or the response would not be used

for any other purpose other than for academic purpose.

3.6 Data analysis

Analysis and understanding of the data is possible with the help of statistical techniques. The data

obtained from questionnaire and surveys from a population is most suitable for performing

statistical analysis. This helps in transferring the data in terms of numbers or counts (Treiman,

2014). Pearson correlation coefficient helps in identifying the relationship between the

independent and dependent variables (Zhang, 2006). Quantitative data analysis was used in the

study since, it aids in the usage of statistical methods that helps in presenting the outcomes of the

33
research. The obtained data was converted to numbers and percentage. This data was fed into SPSS

for performing correlation analysis for being able to test the hypothesis. The correlation between

seasonal promotions and customer satisfaction was also determined using Pearson correlation

analysis.

Qualitative data analysis is that which analyses data that is in textual form (Zhang, 2006).

Qualitative data analysis was not being used in the study since the researcher had aim to provide

results that are statistically significant. This would not have been possible through qualitative data

analysis. Merely describing the data obtained from the e-commerce customers without applying

statistical measures would have decreased the reliability and validity of data.

Descriptive Statistics

Descriptive statistics describes the data set by identifying factors such as central tendency and

means. It helps the researcher to assert the statistical significance of the data set and to determine

the measure the variability of the data set. By utilising the graphical analysis along with statistical

treatment of the data, it is possible to understand the significance of the data. Given to the

significance of the descriptive statistics, it is widely used with other quantitative data analytical

tools in order to gain holistic understanding of the data collected (Ormerod, 2010). This research

will employ descriptive statistics to study standard deviation, mean, lower and higher limits of data

sets.

Inferential Statistics

Inferential Statistics are used to study the differences between the data sets and to understand the

nature of relationship between the variables. This research will utilise Pearson correlation and

independent test as the part of inferential statistics to identify the nature of relationship between

the research variables.

34
 ● Pearson correlation analysis

Pearson correlation analysis is used to study the extent to which the research variables have

statistically significant relationship. Even though Pearson correlation gives information on the

extent of association between the variables, it is suitable to understand causative nature of

relationship between the variables. It offers information on whether the relationship is of positive

or negative in nature. Parameters such as correlation coefficient and significance level help the

researcher to ascertain the nature of relationship between the variables (Lawner Weinberg &

Knapp Abramowitz, 2008). Thus, usage of Pearson correlation will assist the researcher in

actualising the research goals by revealing the statistical significance of relationship between

seasonal promotion and customer satisfaction.

● Independent t-test

Independent t-test is used to identify whether there is statistically significant difference between

means of two different data sets (Gerald, 2018). This research will utilise Independent sample t-

test to determine whether factors such as gender mediates the relationship between seasonal

promotion and customer satisfaction.

3.7 Ethical considerations

The research ensured anonymity by removing any information that could potentially help identify

the participants. No personal questions were asked in the questionnaire to ensure this. Informed

consent was obtained from the respondents before, sharing with them the questionnaire link. They

had the right to withdraw and they were not forced to participate in the survey. The researcher

made sure that the research was free from plagiarism and copy right issues. The outcomes of the

study, impact of seasonal promotions on customer satisfaction in the e-commerce sector was not

made available to any other individuals other than the people from the university. The name of the

35
firms was never asked for in the questionnaire thus, there was no possibility for specifying the

name of the firms in the report.

The data was stored in the online Google Forms that was password protected. No one had access

to the data files except the researcher. The usage of online survey was helpful in eradicating any

doubts about researcher influencing the e-commerce customers’ response. The response obtained

from the e-commerce customers were used as it was. The customers had no worries about their

personal information being made public since no such information was obtained. The customers

were informed that the report and data will be stored as per university guidelines and that it would

be destroyed after. In data analysis too objectivity approach was used by researcher that avoided

bias. The researcher kept record of all the research activities to be able to identify any errors in the

research process if any. The e-commerce customers were not harmed in any way.

3.8 Summary

The research to analyse the impact of seasonal promotions on e-commerce firms on customer

satisfaction was performed by making use of the above specified research methods. The research

obtained information from 50 online customers who had experience of online shopping and

knowledge about seasonal promotions. Positivism philosophy, deductive approach, questionnaire

and correlation analysis was used in the study. Questionnaire was the material used, online survey

tool was used and the data was analysed with the help of qualitative data analysis methods. The

researcher did not compromise on ethics and took great care for ensuring that the ethics had been

followed throughout the research process.

36
Chapter 4: Result

4.1 Introduction

The chapter 3 would provide information on the results or findings. The information was garnered

from the customers of online shopping sites. Information obtained from the 50 customers is

converted as percentage and presented in the form of charts under frequency analysis. Descriptive

statistics had been done for identifying the effectiveness of the various online shopping sites’

seasonal promotions. Inferential statistics is where the correlation analysis and independent sample

t test results would be presented. No conclusion would be drawn in this chapter, only the results

from the study would be presented in this chapter.

4.2 Frequency Analysis

4.2.1. Gender

In this survey, customers were asked to give the detail of the gender. Female and male customers

were almost equally represented as male represents 52% and female represents 48% of the total

research sample. Given to the equal representation of both males and females, researchers ensured

that the outcome of the research is free of any bias due to gender.

37
Figure 2: Participants’ gender

4.2.2. Age Group

In this survey, customers were asked about their age to understand the relation between age and

their opinions. It is evident that the customers from the age group of 26 to 30 years were

represented in high proportion with 34% followed by 18 to 25 years and 31 and 40 years with 28%

and 22% respectively. Customers who are above the age group of 50 years were least represented

as they constitute only 6%. The second least represented age group is 41 to 50 years with 10%.

38
Figure 3: Participants’ age group

39
4.2.3. Customers always give more importance to seasonal promotion (seasonal offers and

discounts) to make online purchase decision

Customers were asked whether they give more importance to seasonal promotion in order to

understand their behaviour towards purchasing during seasonal promotion.

Figure 4: Customers always give more importance to seasonal promotion

The illustration shows that customers are found to give more importance to the seasonal promotion

as the number of customers who agreed to the statement is higher than the number of customers

who disagreed with the statement. It indicates that only few customers do not consider seasonal

promotion as an important aspect of their purchase decision making process.

40
4.2.4. Sales promotions improves brand awareness among customers

Customers were asked whether sales promotions improve brand awareness to identify the relation

between promotions and brand awareness.

Figure 5: Sales promotions improves brand awareness among customers

Sales promotions are found to improve brand awareness since 40% of the respondents agreed with

the positive relation between seasonal promotion and brand awareness. Majority of the customers

indicated their belief that the sales promotions improve brand awareness by agreeing with the

statement. Only minority of the customers indicated otherwise. It indicates that the organisations

need to include sales promotions into their brand management strategy since it can optimise brand

awareness.

41
4.2.5. Flash sales promotions offered by online shopping sites are attractive

Customers were asked whether they find flash sales promotions offered by online shopping to be

attractive.

Figure 6: Flash sales promotions offered by online shopping sites are attractive

As the majority of the customers find flash sales promotions offered by online shopping sites to

be attractive (44% agree with the statement), it is essential that the organisations need to utilise the

strategy of flash sales promotions as the part of their promotional strategy. By utilising sales

promotion, it is possible to improve the attractiveness of the products and services offered by the

organisation.

42
4.2.6. Customers always get free shipping offer from online shopping sites

Customer were enquired whether they always get free shipping offer from online shopping sites.

Figure 7: Customers always get free shipping offer from online shopping sites

Overwhelming majority of customer (40% agree and 16% strongly agree) indicated that they get

free shipping offer from online shopping sites. It shows that the organisations need to continue the

strategy of free shipping offer in order to ensure high customer retention by ensuring customer

satisfaction. Customers value the free shipping offer which can be used as the competitive

advantage to sustain in the market.

43
4.2.7. Customers can return products without any extract cost if they are unsatisfied with

the product purchase

In this survey, customers were asked whether can return products without any extra cost if they

are unsatisfied with the product purchase in order to evaluate the return policy of the online

retailers.

Figure 8: Customers can return products without any extract cost

Collective responses of the customers (38% agree and 12% strongly agree) indicate that they can

return products without any extra cost if they are unsatisfied with the product purchase. Minority

of the customers disagreed with the statement. It indicates that the organisation needs to allow the

customers to explore the product by ensuring easy return of product if they are not satisfied with

the product purchase.

44
4.2.8. Customers get cashback offers for their online purchases during seasonal festivals

Customers were asked whether they get cashback offers for online purchases during seasonal

festivals to determine how frequently they get such offers from the ecommerce companies.

Figure 9: Customers get cashback offers for their online purchases during seasonal

festivals

Responses of the customers indicate that they get cashback offers for their online purchases during

seasonal festivals. Cash back offers gives the perception of tangible benefits to the customers

which motivate them to continue purchasing with the organisation and get high satisfaction with

the product or service provided by the organisation.

45
4.2.9. Online shopping sites offers free samples of new products for seasonal promotion

Customers were asked whether online shopping sites offers free samples of new products for

seasonal promotion to find the effectiveness of commerce companies’ sales promotion during

different seasons.

Figure 10: Online shopping sites offers free samples of new products

Responses from the customers indicate that the online shopping sites rarely offers them free

samples of new products for seasonal promotion since more than 40% of the respondents (30%

disagree and 14% strongly disagree) do not agree with the statement that online retailers offer free

samples. Majority of the customer indicates that they do not get free samples before making

purchase in online shopping sites as the part of seasonal promotion. It is evident that the offering

free sample is not a widely used strategy to ensure high customer satisfaction in online shopping.

46
4.2.10. Customers get discount coupons from online shopping sites regularly during seasonal

festivals

Offering discount coupon was considered as a seasonal promotion in literature review. Thus,

participants were asked whether they get discount coupons from online shopping sites regularly

during seasonal festivals.

Figure 11: Customers get discount coupons from online shopping sites regularly

It is evident that the customers get discount coupons from online shopping sites regularly during

seasonal festivals. Majority of the online retail customers (36% agree and 14% strongly agree)

indicates that they get discount coupons regularly with only minority of customers rejecting the

statement. It is conclusive that the organisations need to offer customers with discount coupons in

order to ensure customer satisfaction.

47
4.2.11. Online shopping sites offer Gift cards to encourage customers’ purchase intention

Customers were asked whether online shopping sites offer gift cards to encourage their purchase

intention.

Figure 12: Online shopping sites offer Gift cards to encourage customers’ purchase

intention

It is evident from the responses of the customers that the online shopping sites rarely offer them

gift cards to encourage their purchase intention. It is evident that, unlike other previous strategies,

giving gift cards is not widely utilised to improve customer satisfaction. Majority of the customers

disagreed with the statement. Thus, it is evident that the strategy of giving gift cards is not effective

in improving the customer satisfaction.

48
4.2.12. Limited period discounts are frequently offered by online shopping sites

Respondents were enquired whether limited period discounts are frequently offered by online

shopping sites.

Figure 13: Limited period discounts are frequently offered by online shopping sites

It is evident that the limited period discounts are frequently offered by online shopping sites as

majority of the customers agreed with the statement. It is conclusive that the limited period offer

may motivate the customer to hasten their purchase decision by creating the sense of urgency. It

is also evident that the organisations need to increase the frequency of limited period offers to

ensure high satisfaction.

49
4.2.13. Online shopping sites conduct contests for consumers during seasonal festivals

Customers were asked whether online shopping sites conduct contests for consumers during

seasonal festivals.

Figure 14: Online shopping sites conduct contests for consumers during seasonal festivals

Contests are not found to be widely utilised as the strategy to exert influence on the customer

satisfaction. Number of customers who agreed to the statement is comparatively lower than those

who disagreed with the statement. Hence, it is evident that the conducting contest as the part of

seasonal festivals may not effective in improving customer satisfaction.

50
4.2.14. Customers get discount price for a set of items (for example, three for €5) purchased

as a seasonal promotion

Customers were asked whether they get discount price for a set of items purchased as a seasonal

promotion.

Figure 15: Customers get discount price for a set of items

It is evident that the majority of the customers get discount price for a set of items purchased as

seasonal promotions as the number of customers agreed to the statement is higher than those who

disagreed to the statement.

51
4.2.15. Customers’ satisfaction level towards the seasonal promotions offered by online

shopping sites

Customers were asked about their satisfaction level towards the seasonal promotions offered by

online shopping sites. The purpose of this question is to determine the impact of seasonal

promotion on customer satisfaction which is directly related to the research aim.

Figure 16: Customers’ satisfaction level towards the seasonal promotions

It is evident that the seasonal promotion plays an important role in improving the satisfaction level

of customers since high number of customers indicated that they are satisfied with the strategies

of seasonal promotion. Around 60% of the customers (48%+12%) were satisfied with the present

promotions offered by ecommerce companies during various seasons.

52
4.3 Descriptive Statistics

The purse of this section is to evaluate the seasonal promotions of ecommerce companies

considered in this study. The mean value of the responses (ranges from 1 – Strongly disagree to 5

– Strongly agree) were used to evaluate its effectiveness based on customer perception.

Minimum Maximum Mean Std.

Deviation

Attractive flash sales promotions 1 5 3.40 1.030

Free shipping offer from online 1 5 3.46 1.225

shopping sites

Return products without any extra cost 1 5 3.40 1.129

Cashback offers for online purchases 1 5 3.46 1.102

Offering free samples of new products 1 5 2.84 1.201

for seasonal promotion

Offering regular discount coupons 1 5 3.40 1.147

Offering gift cards to encourage my 1 5 2.96 1.195

purchase intention

Limited period discounts are frequently 1 5 3.50 1.074

offered

Contests for consumers during seasonal 1 5 3.04 1.212

festivals

Offering discount price for a set of 1 5 3.28 1.011

items

Table 1: Descriptive Statistics of the effectiveness of Seasonal promotion

The mean value for attractive flash sales promotions is 3.40, this is a moderate value. Significant

number of customers was found to consider the flash sales promotion as effective or less effective

in attracting customers. Or not all online shopping websites of Ireland would have provided flash

sales offer to its customers. The effectiveness of flash sales promotions could not be determined

since the customers were not sure whether they were attracted or not by this seasonal promotion.

53
Free shipping offer from online shopping sites mean value is 3.46, 3 is neutral. Hence, significant

number of customers who participated in the survey perceived that they received free shipping

offers only from some online shopping sites and they did not from others. Thus, it could be seen

that the effectiveness of free shipping offer sent by online shopping sites could never be determined

through this mean value.

The mean of returning products without any extra cost is 3.40. The customers of online shopping

sites are able to return the products if they are not satisfied only with certain firms. On the other

hand, certain firms do not provide this facility to the customers. Hence, majority of the customers

who participated in the survey had or had not returned the products without any additional cost.

The customers are not clear since there are variations in the seasonal promotions offered by the

online shopping sites. Hence, the effectiveness of this seasonal promotion of e-commerce firms

could not be determined.

3.46 is the neutral mean value for cash back offers. This value implies that numerous customers

of online shopping sites are either getting cash back offers during festivals or they do not get cash

back offers. This reveals that only some online shopping firms offer this seasonal promotion while

some do not. This disparity in seasonal promotions offered by e-commerce firms does not allow

the researcher to determine if this season promotion is effective or not.

The mean value is 2.84, 2 is disagree. Significant number of e-commerce customers perceives that

free samples of new products are not being provided by online shopping sites in Ireland. This

clearly indicates that free sample of new products is not an effective season promotion product.

Offering regular discount coupons mean value is 3.40. 3 is neutral, though the value lies between

neutral and agree, the value is closer to 3 hence, this is considered as neutral. Significant number

of customers perceived that the not all firms operating in the e-commerce segment provide regular

discount coupons.

54
2.96 is calculated mean value for gift cards. These gift cards offered by online shopping websites

do not encourage the customers to purchase. 2- is disagree hence, the gift cards offered by the

Ireland e-commerce firms is not effective.

3.50 is the mean value for limited period discounts. The customers are not able to decide and make

a choice as to whether they receive limited period discounts frequently or not. Hence, significant

number of customers felt that they do not receive frequent limited period discounts from all the

shopping sites, they might have received from some. From this value it is seen that the customers

are not sure about them receiving limited period discounts hence, the effectiveness of this seasonal

promotion could not be determined.

Mean value for conducting contests for customers is 3.04. The customers of online shopping sites

perceive that they have seen online shopping sites conducting contests for customers and they have

also seen online firms not conducting contest for customers. Thus, the effectiveness of this

seasonal promotion could not be determined based on this value obtained through descriptive

statistics.

3.28 is the mean value for offering discount price for a set of items. This value clearly indicates

that not all online shopping firms in Ireland offer combo discount pricing, only some firms offer

this promotion while others do not. The effectiveness of offering discounts for set of products

could not be determined based on the mean value obtained through the descriptive statistics.

On looking at the descriptive statistics it could be seen that the effectiveness of season promotion

strategies of the online shopping sites could not be determined for most of the strategies. Hence,

inferential statistics was also done to determine the impact of these seasonal promotion strategies

on customer satisfaction. This is presented in the section 3.4 below.

55
4.4 Inferential Statistics

This section would focus on elaborating or explaining about the correlation analysis and

independent sample t-test.

4.4.1 Correlation analysis

Correlation analysis was performed in the study for identifying the relationship between seasonal

promotions of online firms and its customers’ satisfaction level. Pearson correlation coefficient

was used for identifying the relationship between the two variables. The inferences from the

correlation table were made based on the globally accepted criteria. Hypothesis testing was

possible due to the usage of Pearson correlation coefficient analysis. Zhang (2006), Pearson

correlation coefficient is that which enables individuals to identify the correlation between

dependent variables and independent variables. Pearson correlation is denoted by r, this value lies

between -1 < r <1. If value of r is positive, there is positive correlation and if the value of r is

negative there is negative correlation between independent and dependent variables. Similarly of

the value of r is closer to 1, there is strong correlation between variables and if the value of r is

closer to 0 there is weaker correlation between the variables. Significant value p is determined

using the correlation analysis. If the value of p is > 0.05, null hypothesis is accepted, if the value

of p is < 0.05, alternate hypothesis is accepted. The research used numerous dependent variables

and one independent variable which are clearly stated below.

Dependent variables to be used in the study are as follows.

♦ Flash sale promotions

♦ Free shipping offers

♦ Return of products without any extra cost

56
 ♦ Cash back offers

♦ Free samples of new products

♦ Regular discount coupons

♦ Gift cards

♦ Limited period discounts

♦ Contests for customers

♦ Offering discount price for a set of items

Independent variable to be used in the study is customer satisfaction level.

There are 10 dependent variables (seasonal promotions) and one independent variable (customer

satisfaction). Ten hypotheses were developed for each of the 10 dependent variables and the

analysis is presented below.

(Refer appendix 2 for Correlation result tables).

4.4.1.1 Relationship between attractive flash sales promotions and Customer satisfaction

Hypothesis 1

H10: There is no significant relation between attractive flash sales promotions and Customer

satisfaction

H1a: There is a significant relation between attractive flash sales promotions and Customer

satisfaction

57
0.000<0.05, thus, alternate hypothesis (H1a) is accepted and null hypothesis is rejected. Thus, it

could be inferred that the flash sales promotions of e-commerce firms in Ireland has significant

relationship with satisfaction of customers.

0.498 is the Pearson correlation coefficient, the value is positive, when e-commerce firms increase

flash sales promotions this would be helpful in increasing the customer satisfaction level as well.

This value of r is closer to 1 hence, the correlation between flash sales promotions and customer

satisfaction level is stronger.

4.4.1.2 Relationship between Free shipping offer and Customer satisfaction

Hypothesis 2

H20: There is no significant relation between free shipping offer and Customer satisfaction

H2a: There is a significant relation between free shipping offer and Customer satisfaction

Correlation coefficient is 0.301, the positive value indicates that there is a positive correlation

between free shipping offer and customer satisfaction. With increase in independent variable (free

shipping offer) there will be an increase in dependent variable (customer satisfaction). However,

though positive, the r value is nearer to 0 hence, the strength of the correlation is weaker, the free

shipping offer might not increase the customer satisfaction to a higher level.

Significance value is 0.33<0.05, hence, H2a is accepted. There is a significant relationship between

free shipping offer and customer satisfaction in the ecommerce industry.

4.4.1.3 Relationship between Return policy and Customer satisfaction

Hypothesis 3

H30: There is no significant relation between return policy and Customer satisfaction

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H3a: There is a significant relation between return policy and Customer satisfaction

0.000 is the significance value which is less than 0.05, thus, alternate hypothesis is accepted. Thus,

there is a significant relationship between return policy offered by e-commerce firms in Ireland

and their customer satisfaction.

0.554 is the correlation coefficient, there is a positive correlation between the independent and

dependent variable. Return policies of e-commerce companies do have an impact on customer

satisfaction. The value of r is closer to 1 thus, the correlation between return policies and customer

satisfaction is stronger. There would be a considerable increase in satisfaction with e-commerce

firms using return policies as one of their seasonal promotions.

4.4.1.4 Relationship between Cash back offers and Customer satisfaction

Hypothesis 4

H40: There is no significant relation between cash back offers and Customer satisfaction

H4a: There is a significant relation between cash back offers and Customer satisfaction

0.154>0.05, hence null hypothesis (H40) is accepted, thus, there is no significant relationship

between cash back offers provided by the e-commerce companies and satisfaction level of

customers.

Though there is no significant relationship, the coefficient is 0.205 this indicates that with increase

in cash back offers provided by e-commerce companies there is also an increase in customer

satisfaction. However, the value of r is closer to 0 hence, there is weaker correlation between the

variables. Thus, increasing cash back offers would not necessarily transform into customer

satisfaction.

4.4.1.5 Relationship between Free sample offers and Customer satisfaction

59
Hypothesis 5

H50: There is no significant relation between free sample offers and Customer satisfaction

H5a: There is a significant relation between free sample offers and Customer satisfaction

0.205 is the Person correlation coefficient, e-commerce firms on offering free sample of new

products more they would be able to increase their customers’ satisfaction level. On the contrary,

the coefficient value is closer to 0 hence, the correlation between the independent and dependent

variable is weaker. This weakness indicates that with increase of independent variable the

corresponding increase in dependent variable would be weaker.

0.153 is the value of significance, this is greater than 0.05, hence, null hypothesis is accepted.

There is no significant relationship between free sample offers of new products and customer

satisfaction.

4.4.1.6 Relationship between Discount coupon offers and Customer satisfaction

Hypothesis 6

H60: There is no significant relation between discount coupon offers and Customer satisfaction

H6a: There is a significant relation between discount coupon offers and Customer satisfaction

0.013<0.05, alternate hypothesis is accepted, there is a significant relationship between discount

coupon offers and customer satisfaction level.

0.349, is r value, the positive value reveals that on e-commerce firms regularly providing discount

coupons would be increasing the satisfaction of their customers. However, this value is closer to 0

hence, the correlation between discount coupons provided by e-commerce firms and customer

satisfaction is weaker. Hence, the increase in customer satisfaction could be limited since the

correlation is weaker.

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4.4.1.7 Relationship between gift card offers and Customer satisfaction

Hypothesis 7

H70: There is no significant relation between gift card offers and Customer satisfaction

H7a: There is a significant relation between gift card offers and Customer satisfaction

There is a positive correlation between gift card offers provided by e-commerce companies in

Ireland and their customers’ satisfaction. 0.498 is closer to 1 hence, the strength of the correlation

between gift cards and customer satisfaction is stronger.

0.000<0.05, thus, there is a significant relationship between gift cards and customer satisfaction in

the e-commerce sector.

4.4.1.8 Correlation between limited period discounts and Customer satisfaction

Hypothesis 8

H80: There is no strong correlation between limited period discounts and Customer satisfaction

H8a: There is a strong correlation between limited period discounts and Customer satisfaction

0.51 is the p value this is p value>0.05, hence, alternate hypothesis is accepted, there is no strong

correlation between limited period discounts and customer satisfaction.

The correlation coefficient value is 0.277, this value is closer to 0 hence, obviously there is weak

correlation between limited period discounts and customer satisfaction. There would be an increase

in customer satisfaction level due to the usage of limited period discounts however, this would not

be on a larger scale due to weak correlation.

4.4.1.9 Correlation between seasonal contests and Customer satisfaction

Hypothesis 9

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H90: There is no strong correlation between seasonal contest and Customer satisfaction

H9a: There is a strong correlation between seasonal contest and Customer satisfaction

0.057> 0.05, thus, H90 is accepted and the alternate hypothesis is rejected. Hence, there is no strong

correlation between seasonal contest and customer satisfaction. On viewing the r value 0.271, it is

clear that the correlation between the independent and dependent variables are weak since, the

value of r is closer to 0. With e-commerce firms conducting contests for customers during festive

season they are able to increase their customer satisfaction however, the increase would not be

major increase.

4.4.1.10 Correlation between combo discount price offers and Customer satisfaction

Hypothesis 10

H100: There is no strong correlation between combo discount price offers and Customer

satisfaction

H10a: There is a strong correlation between combo discount price offers and Customer satisfaction

The significance value is 0.000, hence, alternate hypothesis is accepted. There is a strong

correlation between combo discount price offers and customer satisfaction.

The value of r is 0.487, the value is closer to 1 hence, there is a strong correlation between combo

discount prices offers and satisfaction of customers. E-commerce firms on using discount pricing

of set of items are able to increase their customer’s satisfaction. \

4.4.2 Independent Sample T-Test

Total of 50 customers of e-commerce firms participated in the survey. 26 of the customers were

male and 24 customers were female customers. The mean value for both male and female

customers is 3.50. Hence, there is no difference in the satisfaction level of e-commerce customers.

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From the Levene’s test it is identified that 0.321 is the significance value this is less than 0.05.

There is no gender difference between male and female customers’ satisfaction level in the e-

commerce industry. Satisfaction experienced by male customers of e-commerce firms in Ireland

and that experienced by female customers is same.

Refer appendix 3 for independent sample t test.

The reason for no difference to be identified in the customer satisfaction level based on gender

might be due to the almost equal number of participants from both the gender.

4.5 Summary

It is identified from the descriptive statistics that e-commerce promotions of offering free samples

for new products and offering gift cards are not effective seasonal promotions carried out by the

e-commerce companies. The research could not determine if the other seasonal promotions of e-

commerce firms are effective or not since the significant number of customers had responded

neutral as their option.

From the Pearson correlation analysis it was identified that attractive flash sales, free shipping

offers, return of products without any additional chargers, offering regular discounts and offering

gift cards are significantly related with e-commerce customer satisfaction. Offering discount price

for set of products is found to be strongly correlated with satisfaction of e-commerce customers.

On the other hand, cash back offer promotions and offering free samples for new products are not

significantly related with customer satisfaction. Limited period discounts and contests for

customers are also not strongly correlated with customer satisfaction. With increase in these

seasonal promotions offered by the e-commerce organisations there would be a simultaneous

increase in customer satisfaction level. Though the strength of the correlation may vary, the

increase in customer satisfaction due to these seasonal promotions does not vary. From the group

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statistics and independent t-test it was determined that the male and female customers’ satisfaction

level in the e-commerce sector of Ireland is same.

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Chapter 5: Discussion and conclusion

5.1 Introduction

The aim of the study is to analyse the impact of seasonal promotions carried out by the e-commerce

companies on their customers’ satisfaction level. The results had been presented in the earlier

chapter, this chapter would present a summary of the findings, discussion of the findings in the

light of the previous studies would be done and conclusion reached would be detailed in this

chapter. Implications of the research, strengths of the research, and weakness of the research and

ideas for future research would be provided in this chapter.

The research arrived at the conclusion by collecting information from 50 e-commerce customers

of Ireland. They were selected from the population with the help of purposive sampling. Online

survey was conducted that helped in collecting information at a faster rate. Questionnaire was used

in the study and Google Forms (online survey) was used for collecting data. Philosophical stance

taken by the researcher was positivism and the corresponding approach used was deductive

approach. The research design used in the study was correlational research design. The data

analysis method that was applied to the study was quantitative data analysis.

5.2 Brief summary of findings

Findings from the statistical analysis and data obtained from the customers of e-commerce sector

in Ireland are specified in brief in this section.

5.2.1 Importance of seasonal promotional strategies used by the e-commerce firms

✔ E-commerce customers make their online purchase decision based on the seasonal

promotions (discounts or offers). They place importance on seasonal promotions.

✔ Sales promotions enhance brand awareness among the e-commerce customers.

5.2.2 Various seasonal promotional strategies used by e-commerce firms

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 ✔ Free shipping offers, flash sales promotions, free samples of new products, returning

products without additional cost, cash back offers, gift cards, regular discount coupons,

combo discount price, contests for customers and limited period discounts are the seasonal

promotional strategies used by e-commerce companies.

✔ Free samples of new products and gift cards offered by online shopping websites are not

effective.

✔ The effectiveness of other seasonal promotions could not be determined since the mean

value is moderate.

5.2.3 Impact of seasonal promotions on customer satisfaction in the e-commerce sector

✔ Flash sales promotions, free shipping offers, regular discounts coupons, gift cards, combo

discount price, products return without additional cost are significantly related with

customer satisfaction.

✔ Conducting contests for consumers, limited period discounts, offering free samples of new

products and cash back offers are not significantly related with customer satisfaction.

✔ There is no difference between male e-commerce customers and female e-commerce

customers’ satisfaction level.

✔ Strong correlation between flash sales promotions and customer satisfaction in the Ireland

e-commerce industry was identified.

✔ Free shipping offer provided by e-commerce firms does not have stronger correlation with

customer satisfaction.

✔ E-commerce firms in Ireland provide return policies without any additional charge this is

found to be strongly correlated with satisfaction level of customers.

✔ Weaker correlation prevails between cash back offers and satisfaction level of customers.

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 ✔ Free samples of new products introduced by e-commerce companies are found to have

weaker correlation with customer satisfaction.

✔ Discount coupons provided by e-commerce firms do not have stronger correlation with

satisfaction level of customers.

✔ There is stronger correlation between gift cards and customer satisfaction.

✔ There is no strong correlation between limited period discounts and satisfaction of

customers in Ireland e-commerce industry.

✔ Seasonal contests do not have strong correlation with customer satisfaction.

✔ Discount price provided by the e-commerce companies for a group of items is found to be

strongly correlated with customer satisfaction.

5.3 Statement concerning support or otherwise of hypothesis

The research identified that various seasonal promotions is being followed by e-commerce firms.

Not all of these seasonal promotion strategies have an impact on the customer satisfaction level.

Flash sales promotions, returning products without any extra cost, offering gift cards and offering

combo discount pricing are those that are significantly related with customer satisfaction level and

there is a strong correlation between the two variables. Free shipping offers and regular discounts

have significant relationship with customer satisfaction but they have weaker correlation. All the

other seasonal promotions such as cash back offers, free samples provided by firms, limited period

discounts and seasonal contests do not have a significant relationship with customer satisfaction.

Combo discount price, gift cards, return policies and flash sales promotions are found to have

stronger correlation with customer satisfaction. With increase in these promotional strategies the

satisfaction of customers would spike. On the other hand, free shipping offers, cash back offers,

free samples, regular discounts, limited period discounts and conducting contest for customers do

not have stronger correlation with satisfaction of customers.

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5.4 Discussion of findings

5.4.1 Importance of seasonal promotional strategies used by the e-commerce firms

The study did identify that sales promotions is important for e-commerce companies since it helps

in improving the brand awareness among their target customers. From the literature review it was

identified that seasonal promotions are conducted by e-commerce companies. This increases the

exposure of the brand among the customers. This helps in acquiring new customers and helps in

clearing out surplus inventory (Sujata and Menachem, 2017). Thus, the findings from the current

study are supporting the findings from the previous study. Brand awareness is increased due to

seasonal promotions. E-commerce firms would be able to acquire new customers through seasonal

promotions and also would be able to clear out their inventory that is excess.

The research findings also revealed that the seasonal promotions such as offers and discounts

influence the customers purchase decision. As identified from the previous study, the e-commerce

firms strategize for improving the satisfaction of their customers. This is done for improving the

loyalty of the customers towards the online brand. The seasonal promotions are helpful for

companies to influence the repeated purchase behaviour of customers (Vakulenko, Shams,

Hellström and Hjort, 2019). Hence, the findings of the current research and literature are same.

Seasonal promotions carried out by e-commerce firm not only help in influencing decision making,

this helps in improving the loyalty of the customers. These are achieved by enhancing the

satisfaction level of e-commerce customers.

5.4.2 Various seasonal promotional strategies used by e-commerce firms

The findings of the current study point out that limited period discounts, returning products without

additional cost, free shipping offers, cash back offers, flash sales promotions, combo discount

price, contests for customers and regular discount coupons are the seasonal promotional strategies

used by e-commerce companies. The customers are not able to clearly specify whether they receive

68
these offers from online shopping sites or not thus, the research could not determine the

effectiveness of seasonal promotional strategies. The literature revealed that flash sales, cash back

and limited period offers helps in improving sales (Shamout, 2016). Free shipping, discounts and

return accepted without any extra charge are the seasonal promotional tactics used by e-commerce

companies (Sheikh and Basti, 2015). Thus, it could be seen that current study findings also toes a

similar line as depicted in the earlier studies. The seasonal promotional strategies used by the e-

commerce firms as specified in the previous studies are being used by e-commerce firms in Ireland

too. Though these strategies are used the effectiveness of these strategies based on the perception

of the customers could not be determined since the customer could not clearly determine if they

receive these promotions or not from the online shopping websites.

The study also identified that gift cards and free samples of new products are those seasonal

promotional strategies that are being used by the e-commerce firms that are identified to be not

effective. Free samples and gift cards are seasonal promotional techniques used by e-commerce

firms (Jiang, Shang, Liu and May, 2015; Familmaleki, Aghighi and Hamidi, 2015). It is clear that

as specified in the previous studies, the e-commerce firms do make use of gift cards and free

sample promotional techniques. However, in the context of Ireland, these promotional strategies

used during festive seasons are not considered effective by the Ireland customers. The reason for

the ineffectiveness perceived by the customers could have been due to the inconsistency by the

online shopping websites in offering gift cards and free samples of new products. Though the firms

in Ireland use these strategies they might not have been used by all the online firms. Hence, they

would have received gift cards and free samples quite often.

5.4.3 Impact of seasonal promotions on customer satisfaction in the e-commerce sector

From the findings of the study it was clear that flash sales promotions have a significant

relationship with customer satisfaction and this increase with increase in flash sales promotions.

69
From the research of Shamout (2016), it was identified that flash sales promotions helps in

enhancing the revenue and sales of products. Thus, increase in sales or products would have been

possible due to the increase in customer satisfaction level. Hence, the current study findings

support the previous study. On these firms operating in Ireland e-commerce sector using flash

sales promotions quite often they would be able to improve the satisfaction level of customers to

a higher level. This increase in satisfaction would enhance the financial performance of the e-

commerce companies. The impact of flash sale promotions on the satisfaction level of customers

is more prominent.

As determined from the study free shipping offers does have a significant relationship with

satisfaction of customers, the promotional technique increases satisfaction of customers but no

major increase would be identified. According to Serbia by Vasic, Kilibarda and Kaurin (2019),

e-commerce firms are looking at improving satisfaction of customers through providing them

various shipping facilities and even offer free shipping offers during festive season. These help in

attracting customers. Thus, in the light of the previous study, the current study findings also specify

the same fact. This seasonal promotion would also help e-commerce firms to attract potential new

customers. Free shipping offers offered by the e-commerce companies in Ireland are instrumental

in improving the satisfaction of customers during the festive seasons. However, there would not

be major increase in satisfaction of customers due to the utilisation of this technique amongst e-

commerce Ireland customers. Thus, the impact of free shipping on customer satisfaction is not so

significant.

The research findings revealed that regular discounts coupons have a significant relationship with

customer satisfaction level. This level improves with regular discount coupons offered more

however, the level of satisfaction increase would not be higher. According to Al-Zyoud (2019),

discounts offered by firms are that which helps in persuading the customers to purchase instantly

from the firm. Discounts during seasons such as Thanksgiving and Black Friday helps in attracting

70
customers. Thus, seasonal promotions offered by e-commerce companies in Ireland do have an

impact on customers by attracting them and by influencing their purchase decision and satisfaction

level. Thus, it could be seen that the current study findings are similar to those findings from the

previous study. Though the firms provide regular discount coupons to their customers they would

not see a major spike in customer satisfaction level since there is weaker correlation between

discount coupons and satisfaction level of customers.

Gift cards have significant relationship with satisfaction of customers and there would be a higher

increase in the level of satisfaction with increase in gift cards used by e-commerce firms. The

findings of the study clearly elaborate that gender difference does not exist pertaining to customer

satisfaction. From the previous research of Jiang, Shang, Liu and May (2015), gift cards are being

offered by e-commerce firms that influences the customers. Thus, the findings of both the research

study and previous study are similar. The firms in Ireland could be able to enhance the satisfaction

of customers to a higher level with the help of this seasonal promotion strategy. Gift cards could

be more frequently offered by the online shopping websites in Ireland for improving their influence

on customers. The e-commerce firms could least worry about the difference in customer

satisfaction level between male and female e-commerce customers since there would not be any

major difference in customer satisfaction level.

Combo discount price is significantly related with customer satisfaction and there is an increase in

satisfaction level on e-commerce firms increasing their offering of combo discount price.

According to Khouja, Pan and Zhou (2016), discount pricing helps in maximising the profit of the

e-commerce firms and helps in attracting customers. Discount offers are being used by e-

commerce firms to attract price conscious customers. This discount pricing is found to be received

well by the customers (Thomas and Peters, 2011). Thus, the both the findings are same where e-

commerce firms in Ireland would be able to attract customers and increase their profit only if the

customers are satisfied. This is an effective strategy since there is a considerable increase in the

71
satisfaction level on using this strategy. Thus, e-commerce firms in Ireland could increase their

usage of combo discount price for attracting customers who place increased importance on pricing

and volume. The customers of Ireland are found to have responded to this seasonal promotion

well.

Products returned without additional cost do have a significant impact on customer satisfaction in

the e-commerce sector. On this return policy used more there would be a significant rise in

satisfaction level of customers. From the research of Sheikh and Basti (2015), it was identified that

free returns is one of the seasonal promotions used by e-commerce companies that helps in

influencing the customers. Returns made easier for customers by the e-commerce firms are found

to help them to improve their revenue and even generate more sales (Perera and Sachitra, 2019).

Hence, in viewing the current study through the lens of previous study it could be identified that

free returns helps increase customer satisfaction. Free returns policy is thus important for e-

commerce companies in Ireland. Not just non-monetary benefits, the e-commerce company in

Ireland would also make use of their return policies for improving their sales and revenue, this is

monetary benefit that could be potentially gained by the online shopping sites of Ireland.

Limited period discounts is not significantly related with customer satisfaction however, there

would be an increase in customer satisfaction level on a limited scale with e-commerce firms using

limited period discounts. From the previous research of Shamout (2016), it was identified that

limited period offers are being extended for customers to have a positive impact on customers.

Limited period discounts are found to be attracting women customers’ more than male customers.

This is suitable during holiday seasons and festive seasons (Thomas and Peters, 2011). Hence,

different preposition has been expressed in the current study and in the previous study. The limited

period discounts do not have significant impact on customer satisfaction in the e-commerce firms

of Ireland. On e-commerce firms in Ireland providing more limited period discounts they would

not be able to improve customer satisfaction to a higher level, that is there would not be a major

72
spike in customer satisfaction. However, the women customers would be attracted towards this

limited period discount than the male customers of Ireland.

Offering free samples of new products does not have significant relationship with customer

satisfaction. On the contrary e-commerce firms on increasing the free sample offers would increase

the customer satisfaction not on a much larger scale. According to the research of Familmaleki,

Aghighi and Hamidi (2015), free samples provided by e-commerce firms have the ability to attract

customers and helps in managing competition effectively during festive seasons. Thus, it could be

seen that there is difference in the current findings and previous findings. This seasonal promotion

strategy is not effective since there would not be any major changes in customer satisfaction level

due to free samples. The e-commerce customers of Ireland would have been not found to be

receiving free samples more often. This would have been the reason for no significant relationship.

However, e-commerce firms on increasing the free sample offers would be able to slightly increase

customer satisfaction and this seasonal promotional strategy would also be helpful for improving

the competitiveness and would also help attract customers.

Cash back offers do not have a significant impact on the satisfaction of e-commerce customers.

However, with increase in cash back offers customer satisfaction level would not increase to a

considerable level. Conducting contests for consumers is not significantly related with customer

satisfaction but, with increase in the utilisation of this seasonal promotion there would be an

increase in satisfaction of customers. According to Shamout (2016), cash back offers is being used

in the e-commerce industry to make the products attracting and to sustain amidst competition

during festive seasons. This has been useful for both the firms and the organisation. Thus, it could

be seen that the previous study findings and the current study findings are not same. The

satisfaction of customers does not increase due to e-commerce firm’s seasonal promotion of cash

back offer and conducting contests for customers during seasons. The cash back offers and contests

provided by e-commerce companies in Ireland would not have attracted customers. On providing

73
effective cash back offers and contests, the e-commerce firms in Ireland would be able to improve

their customers’ satisfaction.

5.5 Potential problems in the research

Potential problems in the research are almost all of the seasonal promotional values were moderate

hence, the effectiveness of most of the seasonal promotional strategies was not clearly identified

in the study. Online shopping sites are large in number and their customers are also huge however,

the study collected information only from 50 e-commerce customers. The responses provided by

them could not be considered as those that represent the entire population. The e-commerce

industry was analysed which is another potential problem in the study. There were almost equal

number of male and female customers who participated in the survey which is also a problem in

the study since there was no gender difference. Open ended questions were not used that did not

allow the researcher to obtain the view of the customers. The research could only be generalised

to the e-commerce firms in Ireland and not outside Ireland.

5.6 Strengths and weakness in study

The impact of seasonal promotions used by e-commerce firms was measured with the Pearson

correlation analysis. The effectiveness of seasonal promotions used by e-commerce firms in

Ireland was measured with the help of descriptive analysis. The researcher did not stop at this, the

gender difference pertaining to customer satisfaction was also identified in the current research.

Questionnaire that was self-administered to be able to answer the research objectives. The

researcher was able to measure all the independent variables and dependent variables. The

researcher employed the most appropriate research methods for performing the study. Using

statistical analysis for providing results that are valid and reliable and using online survey that

helped in saving time and cost were some of the strengths of the study.

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The study had certain limitations such as not using case study that left the research to be analysed

from a broad perspective. A case study would have helped the researcher to narrow the perspective.

The number of customers included in the survey was only 50 which are very low. The effectiveness

of the research was not analysed accurately and they were no measures used for measuring the

effectiveness of the seasonal promotions used by e-commerce firms. One of the research question

that must have identified ways in which seasonal promotional strategies must be improved for

improving the customer satisfaction in e-commerce sector was not analysed in the study. The

research also did not obtain information from e-commerce firms which limits the results presented.

No extraneous variables impact was considered in the research, they might have been influencing

customer satisfaction and even the way the customers perceive seasonal promotion.

5.7 Ideas for future research

The future researchers could obtain information from marketing managers or marketing employees

of e-commerce firms. Interview could be used for collecting information from them. They could

provide answer to how to improve seasonal promotions for improving customer satisfaction. Their

perception about the effectiveness of seasonal promotions could be collected, such as in the form

of total increase in sales due to seasonal promotions used. This would help in determining the

effectiveness of the seasonal promotional strategies utilised by e-commerce firms. The number of

customers included in the study could be improved by the researchers. Survey could be used in the

study and a case study or case studies could be used for performing the research in the future. If

there are any scales for measuring satisfaction level of customers, the scale could be used by the

researchers in the future. The future studies could consider the impact of moderating variables.

5.8 Implications of the study

The research determined that customers make their e-commerce purchase decision based on

seasonal promotions and this also improved the brand awareness amongst the e-commerce

75
consumers. Thus, the marketing managers of e-commerce firms could analyse their seasonal sales

promotions from the past and determine their best seasonal promotion and implement it, this will

have a positive impact on customer’s purchase decision and brand awareness of the customers

would be improved.

Returning products without any extra cost, flash sales promotions, offering combo discount pricing

and offering gift cards have prominent influence over customer purchase intention. Thus, the

marketing mangers of e-commerce firms could make use of these seasonal promotions more often

to improve their customers’ satisfaction level. Gender does not have any impact on customer

purchase intention hence, the firms need not worry about the gender while developing seasonal

promotion strategies for improving customer satisfaction.

The study has explored a different aspect namely the impact of seasonal promotions on customer

satisfaction in the e-commerce firms in Ireland. This uniqueness would be helpful for future

researchers to perform studies in a related field. The study would provide the requisite knowledge

about the various seasonal promotions used by the e-commerce companies to influence the

customers.

5.9 Conclusion of the study

5.9.1 Importance of seasonal promotional strategies used by the e-commerce firms

It is being concluded that seasonal promotional strategies that are being followed by the e-

commerce companies helps in improving the brand awareness among the customers. The seasonal

promotions play a vital role in helping the customers decide whether to purchase from e-commerce

firms or not.

5.9.2 Various seasonal promotional strategies used by e-commerce firms

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Conclusion reached on the various seasonal promotional strategies used by e-commerce companies

are that gift cards and free samples of new products offered by online shopping websites are not

effective. Free samples of new products, free shipping offers, returning products without additional

cost, cash back offers, gift cards, flash sales promotions, regular discount coupons, contests for

customers, combo discount price and limited period discounts are effective and not effective since

not all e-commerce companies are using these seasonal promotions.

5.9.3 Impact of seasonal promotions on customer satisfaction in the e-commerce sector

From the findings of the study it is being concluded that returning products without any extra cost,

flash sales promotions, offering combo discount pricing and offering gift cards are those that have

prominent impact on e-commerce customer satisfaction level. Regular discounts and free shipping

offers provided by the e-commerce firms do have an impact on customer satisfaction level but it

does not have a major level impact. Limited period discounts, contests for consumers, cash back

offers and offering free samples of new products do not have an impact on customer satisfaction

level. There is no gender difference in the customer satisfaction towards seasonal promotions

offered by e-commerce organisations.

5.10 Recommendations for e-commerce sector

E-commerce firms must focus on improving their seasonal promotions for enhancing their

customer’s satisfaction level. The e-commerce firms could conduct surveys for determining the

impact or effectiveness of the seasonal promotions carried out by them. The insights obtained

could be used by the e-commerce firms to decide on their seasonal promotional strategy. Big Data

analytics would be utilised by e-commerce firms for determining the purchase pattern of the

customers during the festive seasons. The knowledge developed about the customers is important

for e-commerce companies to carry out effective seasonal promotions.

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The seasonal promotions of e-commerce firms must also focus on the content included in the

promotions. The content should be valuable for the customers and should provide relevant

information for them. The seasonal promotions must be flexible and data-driven, collecting data

would help the firms to review the performance of their seasonal promotions. The seasonal

promotions must resonate with the needs and preference of customers.

78
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Appendices

Appendix 1: Survey Questionnaire

I am a post graduate student, conducting this survey to complete my academic research work. The purpose

of this survey is to identify the impact of seasonal promotion on customer satisfaction. I request you to take

this survey and I assure that your responses will be used for my research work only.

Thank you.

1. Your Gender

🔾 Male

🔾 Female

2. Your age group

🔾 18 to 25 years

🔾 26 to 30 years

🔾 31 to 40 years

🔾 41 to 50 years

🔾 Above 50 years

Importance of seasonal promotion

3. I always give more importance to seasonal promotion (seasonal offers and discounts) to make

online purchase decision

🔾 Strongly disagree

🔾 Disagree

84
 🔾 Neutral

🔾 Agree

🔾 Strongly Agree

4. Sales promotions improves brand awareness among customers

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

Seasonal Promotional Strategies

5. Flash sales promotions offered by online shopping sites are attractive

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

6. I always get free shipping offer from online shopping sites

🔾 Strongly disagree

🔾 Disagree

85
 🔾 Neutral

🔾 Agree

🔾 Strongly Agree

7. I can return products without any extract cost if am unsatisfied with the product purchase

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

8. I get cashback offers for my online purchases during seasonal festivals

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

9. Online shopping sites offers free samples of new products for seasonal promotion

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

10. I get discount coupons from online shopping sites regularly during seasonal festivals

86
 🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

11. Online shopping sites offer Gift cards to encourage my purchase intention

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

12. Limited period discounts are frequently offered by online shopping sites

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

13. Online shopping sites conduct contests for consumers during seasonal festivals

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

87
 🔾 Strongly Agree

14. I get discount price for a set of items (for example, three for €5) purchased as a seasonal

promotions

🔾 Strongly disagree

🔾 Disagree

🔾 Neutral

🔾 Agree

🔾 Strongly Agree

Impact of Seasonal Promotion on Customer Satisfaction

15. What is your satisfaction level towards the seasonal promotions offered by online shopping

sites?

🔾 Highly dissatisfied

🔾 Dissatisfied

🔾 Neither dissatisfied nor satisfied

🔾 Satisfied

🔾 Highly satisfied

88
Appendix 2: Correlation analysis - Impact of Seasonal promotion on customer
satisfaction

Correlations

Attractive flash Free shipping Return products Cashback o

sales promotions offer from without any for onlin
online shopping extra cost purchase
sites

Attractive flash sales Pearson Correlation 1 .498** .509** .

promotions
Sig. (2-tailed) .000 .000

N 50 50 50

Free shipping offer from online Pearson Correlation .498** 1 .481** .

shopping sites
Sig. (2-tailed) .000 .000

N 50 50 50

Return products without any Pearson Correlation .509** .481** 1 .

extra cost
Sig. (2-tailed) .000 .000

N 50 50 50

Cashback offers for online Pearson Correlation .374** .492** .403**

purchases
Sig. (2-tailed) .007 .000 .004

N 50 50 50

Offering free samples of new Pearson Correlation .135 .109 .292* .

products for seasonal
promotion Sig. (2-tailed) .349 .450 .040

N 50 50 50

Customer satisfaction level Pearson Correlation .498** .301* .554**

Sig. (2-tailed) .000 .033 .000

N 50 50 50

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Correlations

89
 Offering regular Offering gift Limited period Contests
discount cards to discounts are consume
coupons encourage my frequently during seas
purchase offered festival
intention

Offering regular discount Pearson Correlation 1 .307* .489** .

coupons
Sig. (2-tailed) .030 .000

N 50 50 50

Offering gift cards to Pearson Correlation .307* 1 .207 .

encourage my purchase
intention Sig. (2-tailed) .030 .150

N 50 50 50

Limited period discounts are Pearson Correlation .489** .207 1 .

frequently offered
Sig. (2-tailed) .000 .150

N 50 50 50

Contests for consumers during Pearson Correlation .578** .396** .565**

seasonal festivals
Sig. (2-tailed) .000 .004 .000

N 50 50 50

Offering discount price for a Pearson Correlation .454** .246 .602** .

set of items
Sig. (2-tailed) .001 .085 .000

N 50 50 50

Customer satisfaction level Pearson Correlation .349* .498** .277

Sig. (2-tailed) .013 .000 .051

N 50 50 50

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Appendix 3: Comparative Analysis - Gender Difference in customer

satisfaction level
(Independent sample t-test result)

Group Statistics

Gender N Mean Std. Deviation Std. Error

Mean

Customer satisfaction level Male 26 3.50 .949 .186

90
 Female 24 3.50 1.063 .217

Independent Samples Test

Levene's Test for Equality t-test for Equali

of Variances

F Sig. t df Sig. (2- Mean

tailed) Difference

Customer satisfaction Equal variances 1.006 .321 .000 48 1.000 .000

level assumed

Equal variances not .000 46.248 1.000 .000

assumed

91