THE EFFECT OF SALES PROMOTION ON CONSUMERS’ BUYING INTENTION: IN CASE OF SAMMAKKA STONES PLC

Abstract

This study has taken one of the critical issues in any business, promotion. It has studied the effect of sales promotion tools on consumer buying intention in case of Sammka Stones PLC. The study took sales promotion tools adopted by the company into account. These are price discount, credit sales, after sales delivery and free samples. As described above the general objective of the paper was to analyze the effect of sales promotion tools on consumer buying intention. The specific objectives of the study were to study the individual effect of the sales promotion tools adopted by the company. To answer the research questions; the study used primary data collected using likert scale questionnaire. 89 questionnaires were distributed and 80 of them were used in the analysis. The study used causal method to analyze the effect of sales promotion tools on consumer buying intention. The study also used a linear regression model. The result of the study showed that all price discounts, after sales delivery and free samples have a positive and significant effect on consumer buying intentions; whereas credit sale has a positive but insignificant effect on consumer buying intentions. Based on the conclusion the study recommended the company to review its price discount procedure in regard with discount amount and appropriateness to all quality levels and to all customers and asses its communication mechanism and information distribution tolls regarding after sales delivery and free samples. It is also recommended to review the period it allows customers to settle the credit they owe.