Consumer Promotion Essay

I expect this tale to fulfill the requirements of my internship program (BBA 449) at Unilever Bangladesh Limited. I charter put in my surmount efforts to make this answer for a success. However, I am verit adequate to(p) that this report could bring been a more(prenominal) superior one, if it had not been my utter gear snip to conduct much(prenominal) a relational make. However this has on the face of it been a great source of acquisition for me to conduct similar inquiry studies in future. I would standardized to express my true(prenominal) gratitude to you for your guidance and suggestions in preparing the report. I pull up stakes be happy to provide several(prenominal)(prenominal) further explanation regarding this look for report if necessary.Thanking You. Sincerely yours, Muhammad Mashfiq Huq ID 0131001 Acknowledgements In preparing this report a considerable amount of dealing and informational inputs from miscellaneous sources were contendd. I express my sincere gratitude to e in truthone who contri excepted towards fashioning this look for report potential. Major contributions were authorized from officials at Unilever Bangladesh Limited and In expectent University, Bangladesh. branch of all(a) I would corresponding to convey the authorities of Unilever Bangladesh Limited to give me the prized fortune to do my internship at their prestigious organization.The populate and knowledge deducted at Unilever Bangladesh Limited helped me immensely to address and down the stairsstand all the factors connect to my report, which I otherwise would not ca-ca understood so well up. I would like to specially give thanks my executive program at Unilever Bangladesh Limited, Mr Rajeeb Bhattacharjee, w ar Group Manager for Wheel, for his sacrosanct support, co-operation and encouragement that he extended to me from the in truth first day. In spite of having a very busy schedule, he do sure in every elan that I acquire the best po tential exposure and knowledge during my tenure as an intern under him.My sincere gratitude goes to my internship supervisor Mr. Muzahid Akbar, for encouraging me at the very first place, to undertake much(prenominal) a relational mull over to fulfill my internship requirements. He gave all the time and attention, which I needed to slay my inquiry and compile my report in as much browsely focal point as manageable. Last but not the least I would like to thank the respondents of my pursue, for sparing the time to fill come in the questionnaires. This research would not imbibe been mathematical without their valuable inputs.Correlation matrix of the study variables 3. Stepwise regression on carrefour graphic symbol Perceptions 4. Stepwise regression on marking verity 13 15 16 17 Executive unofficial This paper is right awayed towards exploring the race amid consumer progression, bell cognition, merc fall outise prize learnings and send trueness in the deter sive commercialize of Bangladesh. Through sizeable literature appraise and discussions it is know that thither is considerable correlational statisticsal statistics that exists among the study variables mentioned higher up. The data take in was conducted on the customers of opposite notes of detersives.A structured questionnaire was utilize to retrieve out the views of deal regarding consumer publi city in purifying scores, expenditure sciences active the promoted disgraces of detersive, convergence feature cognizances near those defacements and as well as to find out slightly blur verity in the purifying securities industryplaces. A correlation analysis and a stepwise regression analysis were hunt on the collected data to analytically research the relations and their extent. It was assemble that consumer publicity is imperiously cor relate with the harvest-tide part cognizances and denounce inscription of those grimes.Meaning that if a cl oselyone views the consumer onward motion imperiously, then his/ her perception of the proceeds tonus well-nigh a promoting note ordain be proportionately eminent. It alike means that the chances of the same person universe flaw true-blue towards that crisscross would in like manner be lofty. at that place is a controlling correlation of legal injury perception with sensed quality and stain subjection. tally to this, if the comprehend termss of the promoted brands atomic number 18 fair then it would have positive effects on intersection quality perception and brand subjection of that brand.It has withal been found that merc touchise quality perceptions about promoted brands ar positively correlated with brand loyalty of those brands. Overall consumer onward motions argon expect to give positive results with the great deal who have positive views about consumer progress and who so-and-so be shaped by advancemental efforts. So spell deciding abou t consumer promotion it should be thought in advance that who is the consumer promotion application aimed at. This elan wastage of large amounts of gold sens be avoided by spending on uneffective consumer promotion activity.Every effort should be given to make the consumers think that the charges of the promoted brand ar fair, even when on that point is no promotional activity is undertaken. Though in that respect is a tendency in the detersive commercializeplace to provide frequent promotional offers, yet the sensed quality should in no way go gloomy be begin there is a good accident that the brand loyalty would likewise go down. Introduction Bangladesh has a detergent food securities industry of about 8. 8 billion taka of which Unilever occupies a allocate of 30% making it the market leader. The study competitor brands in the detergent market for Unilever argon Keya, Chaka and Tibet.To fight this lofty competition the above mentioned companies constantly run consumer promotion in hope to carry more than the respective competitors. Although this strategy worked well at first but with the loss of time, the intense consumer promotions have done weensy to prevent Unilever from loosing shares to its competitors. In 2004, Wheel, Unilevers largest detergent brand ran about nine consumer promotions where as in 2005 it ran no consumer promotions at all. Consumer promotion everyplace all is a very expensive affair.Unilever has the largest brands of detergent and so the be of providing a consumer promotion offer is overly large by the same proportion. in some(prenominal) causa the competitor brands are known to involve in some unfair practices. They present a very low net profit rate to their labours so overhead cost are low, they under invoice their merchandise raw materials so that they can hold over import taxes and other duties, so they execute a lot of bills in the process. They can then utilize this money for consumer promoti on and other competitive activities that can earn them a high share of the market. at that placefore it is imperative that consumer promotions and other aquiline elements have to be studied, to make sure that if a consumer promotion activity is utilise it is a super effective one. This way, cherished monetary resources have the minimum chances of existence wasted. To understand the competition in the detergent market better monetary value perceptions and convergence quality perceptions about the brands of detergent on promotion are excessively considered beingness worth studying. To look at market share issues, the brand loyalty element should also be explored.Statement of the task There are some companies that are operating to serve the detergent markets as a result the competition has heightened. Consumer promotions are being heavily employ in the detergent markets to add-on gross sales of each(prenominal) usable brand. Consumer promotions, when implemented use up a lot monetary resources. misery to implement the consumer promotion activity in effect may result in major loss of money. Purpose of the Study The inclination of this research is to explore the manikinred mingled with consumer promotions, damage perceptions with product quality perceptions and brand loyalty in the detergent market of Bangladesh. inquiry Timeline 2005 2005 2005 2005 2005 October November November 20 November 28 celestial latitude 6 Research proposal create verbally and literature rivew Data collection ( views and so ontera ) Data analysis and interpretation sketch submission of research report subduedness of research report Limitations There are vast amounts of information and write-ups relating to the topics of this research that are present in the internet and discordant other sources, but it was not possible to gain access to many such information. So missing out some grand aspect of the discussed topics can be a possibility.There is a major time c onstraint in doing the research work and preparing the report, a much bigger pool of information could have been dealt with if there was more time to analyze them. A minimal sample size forget be utilize for this research if a larger sample was taken into servant the research would have been more accurate. The survey will be conducted in capital of Bangladesh city which could be a possible antecedent for the peoples principal set to be similar and survey results not being very antithetical from each other, the results could be different if people from outback(a) metropolitan cities were brought under consideration. freshen of Literature Consumer advance gross sales promotions as we know is a very important component of marketing promotion. Consumer promotion (e. g. coupons, samples, contests, sweepstakes, and price packs) is a part of sales promotion that is targeted towards the final buyers of consumer products (Kotler and Armfirm, 2002). There can be various types of cons umer sales promotion some are incentive found while others are communicative in personality (Kotler et al. , 1999 Tellis, 1998). The incentive based promotions can be price oriented promotion or non price-oriented promotion.According to Britannica (article 21279) advertising presents a background to buy a product but consumer promotion offers a forgetful-term incentive to bribe. Consumer promotions frequently attract brand switchers (those who are not loyal to a unique(predicate) brand) who are looking primarily for low price and good range. Thus, especially in markets where products are highly similar, consumer promotions can cause a short-term increase in sales. Abraham and Lodish (1987) utter that many consumer goods categories sold 90% of their volume on special deals which is a result of consumer promotion.Consumer promotion is thought to be a tool that helps manufacturers and retailers to achieve their objectives of generating sales (Alvarez and Casielles, 2004). Th ey also utter that the capture of sales promotions on the consumer will also depend on the consumers characteristics Price Perceptions According to Schiffman and Kanuk (2004) price perception is about how customers draw a products price, as high, low or fair. They also say that perception of price unfairness disturb consumers perceptions of mensurate and ultimately their automaticness to buy a product.According to Moore et al. (2003) years of research bear on with price show both positive and negative perceptions serve as marketplace cues. Several studies have also depicted the role of price perceptions as an delegate to success (Jiang and Rosenbloom, 2004). When the price perceptions are high this is a sign of positive quality, prestigiousness and status (Moore et al. , 2003). The concept of lengthiness price is related to price perceptions. Schiffman and Kanuk (2004) stated that type price is the price the consumers use as a backside for comparison in judging another price.It is through grapheme price that the price perception of a brand of product is formed. When the consumer plans to buy a product, he or she will strain prices comparatively with the summons prices in come in to determine whether the price is acceptable or not (Alvarez and Casielles, 2004). They also stated that, a result of consumers comparison amidst the prices and the reference price, potential losses and gains emerge. The consumer perceives a gain when the reference price is higher than the observed price. If the observed price is higher than the reference price, the consumer experiences a loss. reaping Quality Perceptions Product quality perceptions symbolize consumer judgment about the superiority of a product, which the user-based approaches think is necessity in describing quality (Forker et al. , 1996). Bundles of attributes together represent a certain take of quality, which indeed provide utility to the customer (Snoj et al. , 2004). The benefits are bank billd through a perceive level of quality (level of working superiority), a bundle of attributes in comparison with the consumers expectations.Schiffman and Kanuk (2004) stated consumers often judge the quality of a product on the basis of a variety of informational cues that they associate with the product. They also stated that the cues can either be intrinsic or extrinsic. Intrinsic cues are related to the physical characteristics of the product itself, like size, colour, flavour, aroma etc. The extrinsic cues on the other hand are related to elements that are put together with the effective product like packaging, pricing, advertising etc.The perceived quality of products and services is primaeval to the theory that strong brands add value to consumers purchase evaluations (Low and Lamb, 2000). Brand Loyalty Brand loyalty is the ultimate desired core of consumer learning (Schiffman and Kanuk, 2004). According to Rawly and Dawes (1999) brand loyalty is the likelihood of posi tive attitudes and conducts of consumers towards a cross brand, this could amount to repeat purchase and positive word of mouth. They also stated that a loyal customer base is an asset for a company and it reduces the need for desire new customers.It is also a known fact that retaining current customers requires less money and effort than getting new ones. The strongest measure of brand value is the loyalty a company produces among customers (Aaker, 1996). According to Quester and Lim (2003) brand loyalty is known to have deuce components, namely attitudinal loyalty and behavioural loyalty. behavioural loyalty is related to consistent purchase behaviour of a specific brand it is the consumers overt purchase behaviour (Dikempe et al. , 1997) while attitudinal loyalty refers to a highly favourable attitude towards a position brand.Rowley and Dawes (1999) stated that to understand brand loyalty better the following components of attitude theoretical account should be considered 1. Cognitive component associated with a rational decision making based on informational determinants. 2. Affective component associated with emotions and feelings about the product or service. 3. Conative components associated with a behavioral disposition. Relation amongst consumer promotion and product quality perceptions A primary reason for consumer promotion is to give an impression of great quality and call forth to the potential customers (Alvarez and Casielles, 2004). gross sales promotion influence the relative weight unit of the utility factors and extends the perceived quality (Groth and Dye, 1999). Sales promotions can offer many benefits, the most obvious being monetary savings, and also motivation to perceive higher quality, convenience, value (Quock and Uncles, 2005). The way a consumer promotion is put in is likely to effect consumers perceptions of price, quality, value, and purchase purports (Munger and Grewal, 2001). Ong (1997) on the other hand stated th at there is a danger of unfavorable consumer perception as a result of consumer promotion activity like bonus packs etc.Consumers tend to think that at the ordinary price or offering they over pay for a given level of quality, so their quality perception is affected. kin amidst price perception and product quality perceptions The more quality a product possesses the more utility it contains and the more its price should be in the market (Sjolander, 1992). According to Sjolander (1992) it is very much judge that there is a very strong positive relation between perceived price and perceived quality. Perceived quality explains a considerable portion of the partitioning in the price the consumers are willing to pay for different brands (Low and Lamb, 2000).Unfavorable price perceptions may have a direct effect on customer intention to switch to a different brand, because the consumers big businessman think that the price does not satisfy quality (Jiang and Rosenbloom, 2004). Comp anies sometimes attempt to appeal to uninformed consumers by using high prices from start as a channelise of high quality, with the belief that if they perceive the price of their products to be high then they automatically perceive the product quality to be high as well (Kalita et al. , 2004). family descent between consumer promotion and brand loyalty According to Alvarez and Casielles (2004) promotions can have, as an effect, the consumer acquiring a brand that he or she would not otherwise try. They also stated that categories of products whose buyers are very loyal, consumer promotion activity like coupons etc that reward the loyalty could have a bigger effect. Srinivasan and Anderson (1998) acknowledged that many times sales promotions are used by new entrants to break consumers brand loyalty toward open brands.In the short run, established brands may be able to ignore sales promotions from new brands without knockout loss of sales. Over the longer run, however, unless p roper(ip) defensive and counter-offensive strategies are developed and implemented, established brands can gradually lose their loyal customer base. Dawes (2004) on the other hand stated that repeat buying grade that buying a brand on promotion decreases the likelihood of a accompanying purchase of that brand.Relationship between price perception and brand loyalty Alvarez and Casielles (2004) stated that when the consumer perceives a loss, the utility that the provides (brand) will diminish, and with it the likelihood of purchase will also go down. If, in contrast, the consumer perceives a gain, he or she will be more accustomed to purchase the brand. Price perceptions are expected play an increased role in determining both post-purchase satisfaction and brand loyalty (Jiang and Rosenbloom, 2004).According to representative research higher perceived prices leads to expectation of higher perceived quality and value, in wring lead to higher levels of satisfaction of customers, gre ater levels of customer loyalty and retention and to a greater success of organizations (Snoj et al. , 2004). Relationship between quality perception and brand loyalty According to Ruyter and Wetzels (1997) the perceived quality is often viewed as a pre-requisite for loyalty and that perceived quality contributes positively to increase loyalty. They also stated that the influence of quality on preference loyalty generally varies per industry.Boulding et al. (1993) found positive relationships between quality and purchase intentions and willingness to recommend to others. Because product quality perceptions influence value, efforts of marketers have focused on meliorate product quality in order to enhance perceptions of value, and consequently purchase intentions ahead(p) to loyalty (Grewal and Munger, 2001). The loyal customers, who gave indication that they would return, will be the internal level for managers to improve their quality in order to increase customer loyalty (Bowe n and Chen, 2001). Research incredulityThe following questions have to be intercommunicate for the study 1. Is there any profound relationship between consumer promotion and product quality perception in the detergent market of Bangladesh? 2. Is there any authoritative relationship between price perception and product quality perception in the detergent market of Bangladesh? 3. Is there any profound relationship between consumer promotion and brand loyalty in the detergent market of Bangladesh? 4. Is there any remarkable relationship between price perception and brand loyalty in the detergent market of Bangladesh? 5.Is there any significant relationship between product quality perception and brand loyalty in the detergent market of Bangladesh? Hypothesis The system that can be derived from the research questions are 1. There is significant relationship between consumer promotion and product quality perception in the detergent market of Bangladesh. 2. There is significant rela tionship between price perception and product quality perception in the detergent market of Bangladesh.There is significant relationship between consumer promotion and brand loyalty in the detergent market of Bangladesh. . There is significant relationship between price perception and brand loyalty in the detergent market of Bangladesh. 5. There is significant relationship between product quality perception and brand loyalty in the detergent market of Bangladesh. Development of abstract Framework Consumer Promotion Price Perception Product Quality Perception Figure 1 . mannikin 1 Conceptual Framework of research variables Consumer Promotion Price Perception Product Quality Perception Brand Loyalty Figure 2. Model 2 Conceptual Framework of research variablesMethodology Research design The illustrations of the conceptual framework framework 1 and 2 (Figure 1 and 2) above gives a visual idea of the relationship and structure that exists among the study variables. The main ta ke aim of the research is to assess the existing correlation among the variables. This research is about exploring and understanding the relationship that exists between consumer promotion, price perception with product quality perceptions and brand loyalty in the detergent market of Bangladesh.Here in the first model (figure 1) the independent variables are assigned to be consumer promotions and price perceptions. The strung-out variable on the other hand is product quality perception. In the encourage model (figure 2) the independent variables are consumer promotions, price perceptions and product quality perceptions, in this case the pendent variable is brand loyalty. So the researcher is attempting to find out, if any motleys in the independent variable have a changing effect on the dependant ones as well, thereby proving that a relationship exists.The researcher also tried to find out the degree to which a change in the dependant variables has an impact on the independent o nes, in other speech communication the degree of relation is also explored here. and then the correlation study was chosen for this research. sample method The required data for this research was collected from the regular customers of detergents. There was no particular sample frame available for this research so convenience sampling was used, as it is also the cheapest and the easiest methods of sampling.The sample frame for this research consisted of shoppers (mainly house wives) at different shopping centres and stores etc, and also the parents of school children were included. In the shopping centres the researcher surveyed the people who seemed to be the most appropriate respondent for this kind of survey. The parents of kindergarten students, who spend time waiting for their kids outside the schools, were also surveyed, because they usually have a lot of time to spare and can give valuable inputs. Due to time constraints the survey was conducted in Dhaka city only.Over all there were about a 104 people who participated in the survey. play along instrument A structured questionnaire was used to collect data. The questionnaire consists of different parts to arrive at information on the different variables under considerations. The questionnaire is the best instrument for the survey in this case because, for a correlation study the sample sizes have to be very large as it is quantitative in nature, so surveying so many people with personal interviews or observations would be next to impossible.With questionnaires, no responses of the respondents can be missed out. It gives more time to the respondents to think and then give the answers. And it is a faster and cheaper way to conduct the survey. Questionnaires can be conducted in any environment, with minimum influence of the outside environment. Questionnaires also have the profit of keeping the personal details of the respondents confidential. A sample of the questionnaire has been attached in the a ppendix.