THE IMPACT OF SALES PROMOTION METHODS ON CUSTOMER-BASED BRAND EQUITY

Abstract:This paper investigates the relationships between selected sales promotion methods and customer-based brand equity. The authors propose a conceptual model in which sales promotion methods (monetary - discounts, and non-monetary - specialized advertising) are observed in relation to the dimensions of brand equity (perceived quality, brand awareness, brand associations, and brand loyalty). These dimensions were initially linked to customer-based brand equity. Data analysis was done with the help of factor, regression and reliability analysis. According to the research results, all four dimensions of brand equity have been confirmed to have a statistically significant impact on customer-based brand equity. On the other hand, it was determined that customers’ perception of both monetary and non-monetary sales promotion methods has a negative impact on the observed dimensions of brand equity. Therefore, it can be concluded that the observed sales promotion methods do not influence customer-based brand equity. The findings of this paper will benefit brand managers, marketers, customers and the academic community

 

Keywords: sales promotion, monetary and non-monetary methods, brand equity, customer perception