A Research Proposal Submitted to the Rift Valley University In partial Fulfillment

of The Requirement for the Degree Masters in Marketing Management (MA)

Effects of Sales Promotion on Customer Buying Behavior in Addis Ababa: The

Case of Second Marill movers.

By Edomias Lemma

Advisor: Birhanu Tsegaye (Phd Cand)

May, 2020

Addis Ababa, Ethiopia

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Table of Contents

CHAPTER ONE
INTRODUCTION…………………………………………………………………………..1
1.1 Background of the study………………………………………………………………………………….....1
1.2 Statement of the problem……………………………………………………………………………………5
1.3. Research Questions………………………………………………………………………………………….6
1.4. Objective of the Study……………………………………………………………………………………….6
1.4.1. General Objective …………………………………………………………………………………………6
1.4.2 Specific objective of the study ……………………………………………………………………………..7
1.5. Significance of the study……………………………………………………………………………………...7
1.6. Research Methodology …………………………………………………………………………..7
1.7. Operational Definition of Key Terms……………………………………………………………………….7

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 CAPTER ONE

Introduction

This chapter will contain background of the study, statement of the problem, basic research
questions, objectives, significance, delimitation and operational definitions of key terms of the
study.

1. Background of the study

Modern marketing practices heavily rely on using sales promotion tools. Sales promotion tools
are flourishing in modern marketing practices for the reason that they catch the attention of the
prospective consumer and stimulate them towards a positive purchase decision. The consumer
responds a sales promotion offer to get benefitted by various benefits offered by sales
promotion (Shimp, 2010). The advantages/benefits offered by a sales promotion tools impact
on consumer's psychological evaluation. Consumers evaluate the sales promotion offer and
make a conclusion regarding profitability. Beyond the profitability assessment, consumer's
evaluation of the product is also influenced by emotional and intrinsic feeling (Aydinli et al.,
2014). Hence the sales promotion tools and their benefits influence consumer's perception by
offering two different kinds of benefits. The benefits of sales promotion tools which trigger the
consumer evaluation by rational thoughtMoney saving, convenience, usefulness, etc Are
categorized as utilitarian benefits ( Chandon et al., 2000). These benefits are dependent on
consumer’s profit and loss evaluation. The benefits of sales promotiontools which make an
impact on consumer's evaluation by emotional and intrinsic feelings (i.e., value expression,
entertaining, pleasant feeling, etc.) are categorized as hedonic benefits ( Chandon et al., 2000).
Pre-vinous researches have explored various dimensions of sales promotion'

Some researchers have reported that the promotion of low-income families / lubricated
education, while others argue that the promotion increases the interests of existing clients as

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well in all income groups (Blattberg and Neslin 1990 Revision; Montaldo 2006). According to
Blackwell, Miniard and Engel (2001), price discounts play a role in increasing a client’s
consumption of product and also significant influence of behavior indirectly attracts a new
customer. According to Blackwell, Miniard and Engel (2001), the awards have played an
important role in inducing behavior of the test product to the customer by which indirectly
invites new customer. According, to Shimp (2003), sales promotion incentives are provided by
the manufacturer to increase sales. Incentives can be used by the wholesale, retail, and member
of the chain and consumers to increase sales force. Sometimes, retailers have their own brand
so they also use incentives for future consumption and buying their store competitors store and
buy their competitors not trademark. Sales promotion is the behavior of the short-term
influence.

According to Totten and Block (1994), Sales promotion is an essential column in the
marketing

Communication mix which is a process to inform, persuade and remind consumer directly or
indirectly about the product and service. Sales promotion is a short-term initiative to attract
customers with the help of monetary and non-monetary incentives. This promotional strategy
is effective where high market similarity exists and it helps in brand switching. Also, sales
promotion influence consumer for stockpiling because it offers and motivates customers to buy
extras (Kotler, Keller, 2017). So consumers’ buying decision is affected by an external
stimulus. Marketing researchers try to find out these external factors that are related to
consumers’ buying process. A study made by Schiffman & Kanuk identifies four factors that
influence the consumers’ buying decision. Factor one, “economic view” which points out
consumers has sound knowledge about market competition and they perceived positive and
negative view about product & services from the perception, they made the purchase. The
second factor is the “passive view” that is different from the previous one as this view explains
that consumers do impulsive purchase being influenced by the sellers’ promotion offerings.
The third one is “emotional view” which describes that buyer makes a decision based on the
emotion-related to the brand. The last one is “cognitive view” that states that consumers seek
information about the product and opt for maximum benefits, (Shallu, Gupta, 2013).In the
same way D.C. Gilbert in his study argued that consumers make three major decisions while
buying in the supermarket- which category to buy? What brand to buy? And the quantity to

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buy. The promotional offers have the impact on these three decisions. Different types of
promotional offers have a separate degree of impact on the consumers’ buying decision
(Gilbert, et al. 2002) [4]. There are different forms of sales promotions, but complexity arises
while measuring the degree of impact of the different promotional offers on the customers
(Shrestha, 2015). Therefore, since sales promotion has effect on the customer buying behavior,
it becomes necessary to investigate how it is designed and implemented and its overall
effectiveness.

Back ground of the company

Segon International movers is one of the packing and moving company specializing in
household Effects, Antique and Fine Art packing company, established in 2000 and made a
merger with an international packing and moving company, Marill International and became
SEGON-MARILL INTERNATIONAL MOVERS PLC in 2010.

Segon-Marill International Movers has one goal: to exceed the expectations and needs of our
customers worldwide! Segon-Marill International Movers has carved a niche in the packing
and moving industry for its reliable, safe and timely services.

Our clients are personally contacted following their move to assure that our services exceeded
expectations and to gain valuable feedback to assist in our ongoing quality improvement
efforts.

Segon-Marill International Movers is dedicated to providing our customers with the best, most
efficient worldwide transportation and logistics services. Using a well-established and proven
chain of operations, we offer our customers customized moving services via sea, and air from
and to all points around the globe at the most competitive cos

The care and attention that our packing teams do while packing ensures safe arrival of your
belongings. As we have an extensive network of trusted agents throughout the world through
international Association of Movers (IAM), we provide high quality customer service and
customized moving solutions to meet each client’s specific needs.

One of the most critical aspects of an overseas move is the quality of packing, handling and
packing materials. We choose our packing crew and the quality of our packing materials with
infinite care. We are specialists in international moving. All our export packing crews are fully

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 trained, well experienced and up to date in all latest packing techniques. We also confirm that
all our packers, drivers and porters work for Segon-Marill International Movers on a full time
basis.

All export packing takes place in your home prior to the moving day using the best available
materials. Our materials are purpose made specially to protect your belongings while in transit.

We use water proof padded blanket furniture wrap, sturdy corrugated sheets, bubble wrap, a
vast array of reinforced wardrobe cartons for hanging your clothing and keeping them crease
free. We also have smaller cartons for heavier objects and larger cartons for lighter objects.
We use extra strong sealing tape for these cartons. Fragile items such as fine arts, antiques,
pianos, grandfather clocks, glass display cabinets, paintings etc, will be packed using the
appropriate materials and cased or crated for added protection. We design and build made to
measure timber crates and cases tailored to your needs.

Should you need to pack your private or personal items by yourself, delivery of packing
materials you require can be arranged with our move managers.

On completion of packing, our packing crew will clearly label every item at your residence with
item number, customer name, reference number and final destination details. A copy of this list
will be provided to you on completion of the export packing and loading. This list will also be
sent to our agents at destination to ensure an accurate check of all pieces on delivery to your new
residence abroad.

1.2. Statement of the problem

Promotion basically affects direct behavioral consciousness or assertiveness. One of the purposes
of a sales promotion is to cause a nonstop effect on the purchase behavior of the firm’s
consumers, which he tries to explain the direct correlation of sales promotion and the customer
buying behavior, (Don Edward Schultz, 1998). Strengthening the importance of promotion
(Shimp T. A., 2003) stated that although sales promotion is one of the implements in the
Promotional mix, it has different objective from others. For example, advertising aims to create
brand awareness, influence and change consumers approaches. Personal selling aims have direct
contact with buyers. The main aim of this connection is to motivate, inform and educate them.
Sponsorship marketing aims to promote the brand when it helping to do certain event.

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However, sales promotion has another objective, which is offered by companies to motivate
customers to consume definite product or service in a lower price’ which he basically tried to
explain that sales promotion have direct effect on the customer’s intention of buying. Also
Onyango (2014) assures that ‘Different articles and researches repeatedly determine that sales
promotion strategies have significant positive influence on the customer behavior.’ On the other
hand some researchers point out that sales promotion may not be effective. For instance,
Ehrenberg, (1994), states that routine monitoring reports show that the industry is improving
Production capacity, storage and distribution systems, as well as the availability of the products
in every aspect of the commodity

With all that being addressed I would like to say that many researches haven’t been done with
regards customer’s behaviors towards sales promotion in the packing and moving business in
Segon - Marill Internatinal movers PLC. So this research will see deeply the effects of sales
promotion on customer buying behavior in packing and moving service in Segon Marill movers

I will study the sales promotion trends in Segon Marill International movers and why it has not

reached the potential clients who would like to use the service. Thus, to assess the effect of Sales

Promotion on Customer Buying Behavior the following basic questions were set.

1.3 Basic Research Questions

1. What are the impacts of sales promotion on customers buying behavior?

2. Does the quality of the sales and promotion activity match with packing and moving
service of the company?

3. To what extent does sales promotion attract customers?

4. What are the measures need to be taken for improvement of sales promotion in Segon
marill internatinal movers?

1.4 Objectives of the study

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 1.4.1 General objective

The general objective of this research is to examine Effects of sales promotion on customer
buying behavior.

1.4.2 Specific objectives

2. To identify the impacts of sale promotion on consumers buying behavior.
3. To identify the alignment of the quality of sales promotion activity with
packing of and moving service of the company.
4. To assess the extent of attraction of stake holders by sales promotion
5. To identify the measures that needs to be taken for improvement of sales
promotion.
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1.5 Significance of the Study

When this study is finalized it will be helpful to Segon Marill’ international movers board and

management bodies to have a better view of how competitive the packing and moving services

becoming every day and it will allow them to create different marketing strategy’s towards

different types of clients the company meets. Other companies will also benefit from the findings

of this study. It will also serve as a spring board for the researchers interested in further study on

the issue under investigation.

1.6 Scope of the study

To make the study manageable its scope will be delimited to the effect of sales promotion on the
buying behavior in its content and Segon marill international movers in Addis Ababa city and its
vicinity’s geographically.

1.7 Research Methodology

1.7.1 Research Design

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A mixed research (quantitative and qualitative) design will be used to assess the effects of sales
promotion on customer buying behavior. From different types of mixed research this research
will use the concurrent nested (embedded) mixed research method or strategy. More emphasis
will be given for quantitative approach, and the qualitative method will be embedded in it.

1.7.2 Source of Data

In order to answer the basic research questions, fulfill the objectives of the study and make the
data collecting process more comprehensive, both quantitative and qualitative data will be
gathered from the target groups and documents.

1.7.3 Sampling Techniques and Sample Size

In this study both probability and non-probability sampling methods will be employed. There
are-124 workers in the company. From these workers 50 will be selected randomly. Officials of
the organization will be selected purposely because they have understanding about the sales
promotion of their organization. Customers will be selected using convenient sampling.

1.7.4 Instruments of Data Gathering

The instruments for data collecting will be self-developed questionnaires, interview questions
and check lists that will help to gather evidence based empirical and qualitative data on the
existing practices of effects of sales promotion. Questionnaires will be used to collect
quantitative data and contains items like multiple choices, dichotomous answers like yes or no
and 5 point liker scale. Structured and unstructured interview questions will be used for key
informants’ and check list will be employed to collect qualitative data.

1.7.5 Validity and Reliability

The quality of the instruments used in a research is very important for the conclusions the
researchers will draw, because conclusions are based on the information obtained using these
instruments. From this point of view, it becomes very important to establish validity and
reliability of the items in the questionnaires of this study for meaningful data collection of the

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study (Fraenkel, 2008). After questionnaire are developed based on the literature review, their
validity and reliability will be established using comments from experts and pilot test.

1.7.6 Methods of Data Analysis

The information that will be obtained from the respondents using questionnaires, interview, and
documents will be organized, framed and structured to suit analysis and interpretation. Based on
the type of basic questions and the nature of data collected, both descriptive and inferential
statistics will be used to analyze the quantitative data with the help of Statistical Package for
Social Science Soft Ware (SPSS) version 20.

1.7.7 Ethical Consideration

The research permit and approval will be obtained from the department of marketing of of Rift
Valley University. Informed consent will be obtained from the participants before they fill in the
questionnaires and interviewed. Specifically, the participants will be informed about the
objectives of the study and they will be informed that their participation will be purely voluntary.
The participants will be transparently informed that the information they will provide in the
questionnaire and interview will be only for research purpose and that it will be strictly
anonymous and dealt with confidentially.

1.8 Operational Definition of terms

Sales promotion

Philip Kotler – “Sales promotion consists of a diverse collection of incentive tools, mostly
short-term, designed to stimulate quicker and/or greater purchase of particular product/services
by consumers or the trade.

Buying behavior

buyer behaviour is considered to be an inseparable part of marketing and Kotler and Keller
(2011) state that consumer buying behaviour is the study of the ways of buying and disposing of
goods, services, ideas or experiences by the individuals, groups and organizations in order to
satisfy their needs and wants.

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Company

A voluntary association formed and organized to carry on a business. Types of companies

include sole proprietorship, partnership, limited liability, corporation, and public limited
company.

Consumer

Kotler (1994) Consumer behaviour is the study of how people buy, what they buy, when they
buy and why they buy. Solomon et al. ( 1995) Consumer is the study “of the processes involved
when individuals or groups select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires”

Reference

(Aydinli et al., 2014). (Shimp, 2010). (Blattberg and Neslin 1990 Revision; Montaldo 2006).

Blackwell, Miniard and Engel (2001), Shimp (2003) (Kotler, Keller, 2017). (Shallu, Gupta,
2013)

(Don Edward Schultz, 1998) (Shimp T. A., 2003) Onyango (2014 Ehrenberg, (1994),

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