Point of Sales Promotions and Buying Stimulation in Retail Stores

32 Pages Posted: 2 Sep 2008 Last revised: 19 Sep 2008

See all articles by Dr. Rajagopal

Dr. Rajagopal

Graduate School of Administration and Management (EGADE), Monterrey Institute of Technology and Higher Education (ITESM) - Mexico City Campus

Date Written: July 1, 2008

Abstract

This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and satisfaction among customer in building store loyalty have been discussed in the paper. This study also builds arguments around convergence of attractiveness of point of sales promotions and effectiveness of customer services as a tool for gaining competitive advantage in the retail business environment. The results indicate that point of sales promotion programs have become the principal tool of retailing in Mexico to acquire new customers and retain the loyal customers. It is also found during the study that loyal customers are attracted to the store brands during the promotional offers while new shoppers are price sensitive and are attracted by the in-store ambience of sales promotions and volume discounts.

Keywords: Sales promotion, shopping arousal, store loyalty, buying behavior, retailing, customer relations

JEL Classification: L81, M31

Suggested Citation

Rajagopal, Dr., Point of Sales Promotions and Buying Stimulation in Retail Stores (July 1, 2008). Available at SSRN: https://ssrn.com/abstract=1261570 or http://dx.doi.org/10.2139/ssrn.1261570

Dr. Rajagopal (Contact Author)

Graduate School of Administration and Management (EGADE), Monterrey Institute of Technology and Higher Education (ITESM) - Mexico City Campus ( email )

222, Calle del Puente
Ejidos de Huipulco
Mexico City, DF 14380
Mexico

HOME PAGE: http://www.geocities.com/prof_rajagopal/homepage.html

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