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Brand loyalty: The American Marketing Association defines brand loyalty as: The situation in
which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category
Spurious loyalty: Customers may repurchase a brand due to situational constraints a lack of viable alternatives, or out of convenience.
Price promotion: Price promotions are defined as promotions such as Coupons, Cents off,
Refunds, and Rebates that temporarily reduce the cost of the goods or service (Cooke, 1983). Nonprice promotions are defined as promotions such as giveaways (freebees), or contests in which value is temporarily added to the product at full price.
In contrast to the short term success of price promotions, the impact of coupons and multi-item promotions on customers future brand choices is vague. From a managerial perspective it is crucial whether promotions increase or decrease brand loyalty. Managers hope that price promotions encourage brand loyalty, but recent research shows that price promotions, especially temporary price reductions, reduce brand loyalty. FMCG: The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually, however, the term refers to relatively fast moving items that are used directly by the consumer
Slide 3: Objectives
To study price promotion based on brand loyalty in FMCG sector. To examine price offs and relative importance of different attributes while responding to a price promotion in brand loyalty. To study the effect of price promotion in Weak and Strong brands.
Hypothesis
H0: There is no significant relationship between price promotion and brand loyalty
H1: There is a significant relationship between price promotion and brand loyalty
Slide 5: Comparison
In the result people are more quality and price oriented. On the other hand people are also conscious about the company image. Because sometimes the consumer remember that name of the product by the company name and also from the past performance of that company Fragrance and packaging are not influencing factor as per the respondents.
Finally after comparing both the brands i.e. Nirma & Hul the results predicts that the price promotions are used by the Nirma is more than the Hul. Since the Nirma is the weaker brand hey using more tactics of promotions to cope up with the market situation. On the other hand Hul is building the customer by their brand image and also not using promotions frequently because of their quality in their products