Buying Behavior In The Mauritian Supermarkets Marketing Essay

Buying deportment In The Mauritian superintendentmarkets Marketing EssayTo identify the different types of gross gross revenue procession apply on the Mauritian supermarkets/hypermarkets.To analyze the aw beness of gross revenue furtherance among the Mauritian consumers.To evaluate the different types of purchasing behavior that arises payable to gross gross sales promotion.To examine the impact of different types of sales promotion such as coupon, free sample, buy-one-get-one-free, bonus pack, price discount on the get behavior of consumers in the Mauritian supermarkets.2.0 IntroductionThis chapter provides a review of old literatures on sales promotion and the different types of sales promotion, such as coupons, free sample, buy-one-get-one-free, bonus pack and price discount.It also relates consumer answer towards sales promotional tools in the Mauritian supermarkets.2.1 gross sales promotion definedSales promotion is a direct inducement or inducing to the sales force, the distributor or the consumer with the primary objective of creating an immediate sale. (Schultz and Robinson, 1882).Quelch (1989) defines sales promotion as temporary incentives targeted at the trade (trade promotions), or at kibosh consumers (consumers promotions). Sales promotion is one of the four ingredients of the promotion mix. The early(a) ternary are personal selling, publicity and advertising. According to Quelch, sales promotions differ both in role and nature from advertising. Sales promotions are typically viewed as an easily executed means of boosting short-term sales whereas advertising is seen as building post image.Shimp (2003) stated that sales promotion refers to any incentive used by a manufacturer to induce the trade (wholesalers, retailers, or other channel members) and consumers to buy a notice and to kick upstairs the sales force to aggressively sell it. Retailers also use promotional incentives to encourage desired behaviors from consumers. Sa les promotion is more than short-term oriented and undefended of influencing behavior.The objectives of any promotional strategy are to discovergrowth sales verify or mend market share create or improve brand recognition create a favorable climate for approaching sales inform and educate the market create a warring advantage, relative to competitors harvestings or market position improve promotional efficiency. (Rowley, 1998).2.2 Types of sales promotionAccording to Smith (1998), there are three main categories of sales promotionCustomer promotions (Premiums, gifts and prizes)Trade promotions (Special terms, point-of-sale materials and free pens, diaries, and competitive prizes among others)Sales force promotions (Incentive and motivation schemes)Tellis (1998) brings further that, in practice, there ii types of sales promotion Monetary and Non-monetary sales promotions. Monetary promotions are for example, shelf-price discounts, coupons and sampling. They prevail to p rovide fairly immediate rewards to the consumer and they are transactional in character. On the other hand, non-monetary sales promotions include free gifts, contests and sweepstakes for instance. It tends to involve delayed rewards and are more relationship-based.2.3 Supermarkets and Hypermarkets definedA supermarket is relatively adult, low cost, low margin, high-volume self suffice operation design to serve the consumers general needs for food, laundry and family line maintenance reapings (Kotler and Armstrong, 2001). The area covered by a supermarket posterior be about 400 2500 square meters. Examples of supermarkets in Mauritius are Winners, Spar, Way and daydream Price, Value goo and Lolo supermarket among others.Hypermarkets are larger than supermarkets and offer a large assortment of routinely purchased food products, non-food items and dish ups which meet the consumers total need. Hypermarkets can nonplus at least 50,000 square feet of selling and can cargo area more than 40,000 products. These outlets are usually located on the outskirt of towns or cities and are complemented with 30 to 50 shops, specialized in various product lines. The hypermarkets and combination of shops thus offer customers a one-stop shopping. For instance in Mauritius, Shoprite, Jumbo, Super U and Intermart are categorized as hypermarkets.2.4 Supermarkets and Hypermarkets of MauritiusIt is no doubt that during the aside decades considerable changes pee been occurring in the Mauritian retail market. Unprecedented growing in new retail formats, changes in competition, consumers, technology and takeovers are occurring end-to-end virtually every corner of the Mauritian retail indus tense up and more types of retail institutions have been appearing from corner shops to hypermarkets. There have been major(ip) developments in the retail sector of Mauritius. For instance, the arrival of Dream Price, Value Max and Lolo supermarket in different location of Mauritius have intensify the level of competition.2.5 Consumer response towards sales promotionsPromotions arouse deuce reactions in pot. Firstly, it is an augment in consumption, that is, more quantity of a product is acquired. Secondly, it is the storage of the product for the succeeding(a), that is, the consumer acts in anticipating his purchases.Promotions have been shown to affect consumers directly in a variety of ways, leading to smear switchingBrand loyalty secure accelerationStockpiling proceeds tryout2.5.1 Brand switchingAccording to Gupta (1993), it is possible that consumers who do not buy a brand will want to acquire it because they are attracted by the sales promotion. But, Brandweek (1994) found that some people who change brand due to a promotion, change back to their favourite brand due to a promotion change back to their favourite brand when buying that category of product later.2.5.2 Brand loyaltyBrand loyalty is an authoritative concept in understanding consumer buying beh avior. It is a deeply held loading to re-buy or re-patronise a preferred product/service consistently in the future, thereby causing repetitive corresponding brand purchasing, despite situational influences and merchandising efforts having the electric potential to cause switching behavior (Oliver, 1999)2.5.3 Purchase acceleration ii aspects of purchase acceleration should be considered Increased quantity and Decreased interpurchase duration (Neslin, Quelich, Henderson 1982). However, there is a very important question on how these two aspects will influence each other due to the have got effect. Purchase acceleration is predominantly exhibited in summationd purchase quantities or else than pint-size interpurchase time (Gupta, 1988)2.5.4 StockpilingResearch has found that promotions have a banish effect on brand equity (Jedidi et al., 1999), increase variability and unpredictability in sales and thus increase inventory management problems, increase consumer price sensitivi ty which leads to increased purchases made on deals, and produce stockpiling behavior (buying in all volumes that decreases long-term sales volume).2.5.5 Product trialPeter and Olson (1996) put forward that trial ability refers to the degree to which a product can be tried on a trammel basis or divided into small quantities for an inexpensive trial. Banks (2003) wrote that with sales promotion, brands have a chance to quickly affect consumer choice and behavior by adding rank through an on-pack offer, by achieving incremental introduction or by encouraging trial via sampling and/or coupons.According to the trial and plagiarize model mentioned by Thomas (1993), it is generally assumed that of all potential buyers in a given time period, only those who are conscious of the new product could potentially try it (trial), and only those who try it could potentially buy it again (repeat).2.6 Sales promotional tools2.6.1 CouponsCoupons are easily soundless by the consumer and highly u seful for trial purchase (Cook, 2003). According to Blackwell et al. (2001), a manufacturer might utilize coupon incentives to encourage consumers to try a new flavored product at a discounted price, instead of buying the same flavor they normally do at full price. Cheong (1993) found that supermarket coupons increase the number of items bought without increasing the total amount spent.2.6.2 Price reductionIt is known that price reduction produces a short-term volume gain for the brand being promoted. After studying the effects of price reduction on the sales of 25 products in four countries, Ehrenberg et al. (1994) determined that short-term peaks in sales were due primarily t purchases made by free-and-easy users of a brand rather than by new customers. Also, after victorious advantage of the price reduction, consumers mostly return to their favorite brands in their portfolio rather than buy the promoted brand at full price.2.6.3 excuse sampleFree sample is another important p romotional tool oftentimes used by marketers. Marketers often mail free samples of products to consumers so that they can try the products for themselves, rather than just hear about the products (Kardes, 1999). But, Gilbert and Jackaria (2002) found that a free sample as a promotional tool often had no significance on consumers reported buying behavior.2.6.4Bonus pack and Buy-one-get-one-freeleeward (1963) mentioned that factory bonus pack is used to increase consumer trial of the brand. Since more of the product is included at no extra cost, consumers can be persuaded to buy the product if they feel it represents a deal that produces the greatest value for their money. According to Gilbert and Jackaria (2002), packs with Buy-one-get-one-free may not increase brand sentience before trial purchase because the customer will only come after across the product once in the store (unlike samples or coupons), however, it the promotion is noticeable, it will facilitate brand recognition and brand recall for future purchases. Since an additional amount is given for free, consumers may be persuaded to buy the product if they feel it represents a fair deal that provides value for money.2.6.5 In-store displayIn-store display is the product featuring and display in-store (Pramataris, 2001). Display promotions could be an important part of an structured marketing communication programme. Good display material leads to better attention, oddly for brands driven by recognition awareness. Percy et al. (2001) advised that display must be consistent with consumer promotion and advertising, eith the same look and feel, in order to increase recognition at the point of purchase.2.7 SummaryDue to high profitability, many retail outlets have entered the retail industry in Mauritius. The arrival of supermarkets and hypermarkets seems to insure to emerge and exist, but they are however facing greater competition. outdo is no more a problem in Mauritius since many people have the ir own transport facility and the local transport service is as well more efficient as compared to long ago. bingle main analysis in the literature is that little research has been carried out on the marketing tools in Mauritius. As such, this provides room for a constitutional research to be carried out on several types of sales promotional tools adopted in our supermarkets/hypermarkets and the responded behavior of the consumers towards the tools utilized.