THE EFFECTIVENESS OF SALES PROMOTION TECHNIQUES ON THE MILLENNIAL CONSUMERS' BUYING BEHAVIOR

Abstract

Purpose: This paper attempts to find out the major dimensions of Millennial consumers' perception about the benefits derived from sales promotion and the influence of word-of-mouth (WOM) on purchase intention. Design/methodology/approach: A convenience sample of 564 Millennials from 24 different nationalities completed a survey on sales promotion and buying behavior. Structural Equation Modeling approach was used to test the proposed model. Findings: The findings of the study revealed the perception of monetary savings, opportunities for value-expression and WOM as key-drivers of buying intention behavior. Theoretical contributions: Millennials have an overall positive attitude towards the use of sales promotion techniques, being particularly positive towards price reduction (monetary-based promotion) and product samples (nonmonetary-based promotions). Moreover, Millennials are influenced by others' opinions and their perception of monetary savings (as a part of utilitarian benefits) and opportunities for value-expression (as a part of hedonic benefits) provided by sales promotion elicit buying behavior of products and brands on sale. Originality/value: This study examines how the perception of benefits (utilitarian and hedonic) of sales promotion and word-of-mouth (WOM) influence purchase intention, thus filling an important gap in the literature by exploring utilitarian and hedonic benefits' perception of Millennials. Managerial implications: The perception of upgrading to high-quality products and brands seems not to induce Millennials to buy the product on offer. The findings will help companies to select the appropriate types of premium offers that greatly influence the buying behavior of Millennials. Companies should manage monetary savings benefits complemented by the management of value-expression dimension.