The impact of promotional activities on customer purchasing behavior at Tesco Lotus

Abstract

The purpose of this research study is to determine the impact of promotional activities on the purchasing behavior of consumers at Tesco Lotus. The research will be limited to Rama II Branch. After initial exploratory research at Tesco Lotus to ascertain current promotional activities employed, a survey questionnaire was created to determine consumer demographic data, consumption behavior, attitudes towards promotions, and the effects of promotional activities on consumer purchasing behavior. The first version of the questionnaire was given to ten people randomly at Tesco Lotus Rama II on a Thursday while counting customers to determine the customer population size. After the population size was determined, the sample size was calculated and the questionnaire was updated per respondent suggestions and to decrease the likelihood of errors. Sample data was then collected from consumers at Tesco Lotus Rama II on a Thursday and the data was coded and analyzed using SPSS. The results of SPSS were then reviewed to determine the attitudes of consumers towards promotions employed, the effectiveness of promotions, relationships between attitude and behavior of consumers, and correlations between demographic characteristics and the effectiveness of promotional activities in influencing consumer purchasing behavior. The findings of this research study show that the promotions which Tesco Lotus currently employs are free samples, brochures, buy-one-get-one free, discount coupon, price-off, at the counter display, membership program, demonstration, cash-back, and bundled free trial promotions. Buy-one-get-one-free promotions are among the most liked and most successful of the promotion methods employed and sweepstakes and at the counter display promotions are among the least liked and least successful of promotions employed, indicating that promotions which are most likely to influence consumer purchasing behavior are promotions which consumers like. The findings also indicate that there are links between demographic characteristics and consumer purchasing behavior.