A Benefit Congruency Framework of Sales Promotion Effectiveness

AbstractAre monetary savings the only explanation for consumer response to a sales promotion? If not, how do the different consumer benefits of a sales promotion influence its effectiveness? To address the first question, this research builds a framework of the multiple consumer benefits of a sales promotion. Through a series of measurement studies, we find that monetary and non-monetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression, entertainment, and exploration), and three utilitarian benefits (savings, higher product quality, and improved shopping convenience). To address the second question, this research develops a benefit congruency framework which argues that a sales promotion's effectiveness is determined by the utilitarian or hedonic nature of the benefits it delivers, and the congruence these benefits have with the promoted product. Among other results, two choice experiments show that, as predicted for high-equity brands, monetary promotions are more effective for utilitarian products than for hedonic products. We then discuss the implications the multi-benefit and the benefit congruency frameworks have for understanding consumer responses to sales promotions, for the debate about the value of everyday-low-price policies, and for designing more effective sales promotions.Originally published in the Journal of Marketing, Volume 64, Issue 4 (October 2000)About the AuthorBrian Wansink (Ph.D. Stanford University) is a Professor of Business of Nutritional Science, of Advertising, and of Agricultural & Consumer Economics at the University of Illinois-Urbana-Champaign. After working with an ad agency and the Small Business Administration, he earned his Ph.D. in marketing at Stanford (1990) and was a marketing professor at the Amos Tuck School at Dartmouth College (1990-1994), the Vrije Universiteit in Amsterdam (1994-1995), and the Wharton School at the University of Pennsylvania (1995-1997) before moving to Illinois to establish a research program that uniquely focuses on mature packaged goods. Dr. Wansink's expertise is directed toward revitalizing mature brands. Specifically, he focuses on determining the types of ads, promotions, and packages that will increase the usage frequency and usage volume of mature packaged goods. The Food and Brand Lab was founded in 1992 by Professor Wansink. It consists of 15 interdisciplinary researchers at the University of Illinois along with 3 test kitchens, 5 cooperating supermarkets, and a panel of 3,000 consumers. Research is independently funded by grants, consumer groups, and companies. It all focuses on better understanding consumers and how they relate to foods and packaged foods.

A Benefit Congruency Framework of Sales Promotion Effectiveness

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