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A Benefit Congruency Framework of Sales Promotion Effectiveness


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Monetary savings are not the only benefits that come with sales promotions. Hedonic and utilitarian benefits also explain a consumer's response to a promotion. Among the hedonic benefits are opportunities for value expression, entertainment, and exploration. Utilitarian benefits refer to savings, enhanced product quality, and shopping convenience.
This research further indicates that non monetary promotions are associated more with hedonic benefits than utilitarian benefits as opposed to monetary promotions, which provide more utilitarian benefits than hedonic benefits. Consequently, monetary promotions are found to be more effective for utilitarian products than for hedonic ones while the opposite is true for non monetary promotions. The resulting implications include understanding consumer responses to sales promotions, reexamining the value of everyday–low–price strategies, and creating more effective promotions.

Download paper from SSRN (the Social Science Research Network)
Chandon, Pierre, Brian Wansink, and Gilles Laurent (2000). A Benefit Congruency Framework of Sales Promotion Effectiveness. Journal of Marketing, 64(4), 65–81. doi: http://dx.doi.org/10.1509/jmkg.64.4.65.18071
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