Marketing and uninformed consumers. Gilbert & Jackaria (2002) suggested

            Marketingis the heart of every business. Most aspects of business depend on successful inmarketing. Withoutmarketing, none of your potential customers would know your brand and sales maycrash and companies may have to close even you offer the best products orservice to the customers. Marketing is the management process that aimsto introduce and promote product or service to potential customer and alsosatisfies customer in order to increase profit.

There are many types of marketingstrategy including promotions, advertising, direct marketing and publicrelations.            Nowadays,retail and wholesale stores in Thailand are almost homogenous in theirofferings and prices. Any product one buys at a Tesco Lotus can usually befound for a similar price at Big C or Tops supermarket. With little todistinguish each brand, how do manager of supermarkets convince their consumersto choose them? Sales promotion is one important tool that can be used tosignificantly influence consumer behavior; it can help with both getting theconsumer to choose one product over the other, and also to buy more of thatproduct. Sales promotions are specific tools that designed to have animmediate short term sales effect.

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It refers to many kinds of techniques and incentivesdirected towards consumers and traders with the purpose to increase sales orencourage the trail or use of a product or service. It is among the most effective methods ofincreasing sales and building customer satisfaction that successful companiesnormally used. Withinthe marketing mix, sales promotions have one of the strongest effects onshort-term consumption behavior (Laroche et al. 2003). There are manytypes of sales promotions that usually used in supermarket for example, pricepromotion, buy one get one free, vouchers and coupons, sweepstakesand games and customerloyalty programs etc. In this paper, we will focus one two salespromotions type which are price discount and buy one get one free.              Price discount or monetary promotion is a temporaryreduction of the list price of the product. Price promotions have appeared toaccount for the main share of the marketing budget in most consumer packagedgoods categories since the early 17th (Currim and Schneider 1991).

The main goal isto discriminate between loyal users and switchers, or between informed anduninformed consumers. Gilbert & Jackaria (2002) suggestedthat price discount is particularly effective in inducing product trail andpurchase acceleration. Furthermore, price discount work most effectively whenbrand loyalty is low or when price is the thing that consumer use for their foremostcriterion.

                                                    Buyone get one free or non-monetary promotion refers to the situation when an extraamount of the product is given for free when a standard size of product isbought at the regular price. Within business circles, it is often referred toas “self-liquidating” promotions since it usually used to clear out and move inventory. According to Dan Ariely(Behavioral economics researcher), customers normally overvalue the benefits ofthe word “free” even when compared to higher-quality product at a discounted price.