Efficacy of Sales Promotion on Consumer Patronage Choices of Homogenous Product (A Study of Samsung and LG Products)

Abstract

The study examined the effect of sales promotion on consumer patronage choices of homogenous product. Sales promotion has become an integral part of the promotion schemes of both manufacturers and retailers of durable and as well as non-durable consumer goods. The objective of the study was to determine the extent to which discount affects customer loyalty and also to Ascertain the rate at which free sample affects customer choice. This research adopted the use of survey research design. Primary method of data collection was employed for this study which includes interview and questionnaire tools to gather relevant data. It was conducted among the Samsung and LG products users in Ogun State, Nigeria. The customers were purposefully selected, in which 172 customers were selected for both products. The sample size was determined by simple computation method. The researcher adopted stratified sampling purposive sampling to select the respondents of this study. Cronbach Alpha was employed to assess the reliability of the data. Multiple regression analysis was employed to test the two hypotheses. The responds gotten from the questionnaire was sorted, coded and the Statistical Packages for Social Sciences (SPSS) Version 17.0 was used for the analysis. The study found that customer loyalty = 10.617 + 0.396 discount. It shows that both tested variables are at a significance level of 0.01, which means that there exists a significance relationship between discount and customer loyalty. More so, the r value of 0.001 (in which P – value is lesser than 0.01) shows that there is a significant relationship between free sample and customer choice. The study recommends that organization must understand sales promotion as well as how to manage the difficulties relating to it because the study has proven that Sales promotion is very important in every running organization.