THE EFFECT OF SALES PROMOTION ON CONSUMER BUYING BEHAVIOR: THE CASE OF RAINBOW FOAM AND PLASTIC

Abstract

The study attempted to examine the effect of sales promotions on customer buying behavior for Rainbow foam and plastic. The populations studied were Rainbow foam customers and plastic in Addis Ababa. A quantitative research approach was chosen by choosing a sample size of 230. Primary data was collected using questionnaires from customers of the product, then 220 responses were collected, a descriptive and explanatory study design was used. data were collected, carefully processed, encrypted, coded using a spreadsheet and analyzed with SPSS version 26.0. The analysis results showed that the coupon, discount and premium were identified as factors that determine their buying behavior. Consistent with the existing empirical literature, the results of this study confirmed the well-known relationship between the consumer buying behavior and sales promotions. The result of the study showed that coupon, price discount and premium(gift) have a significant connection with the consumer buying behavior, whereby depending on the result, the premium(gift) sales promotion system has the strongest positive connection with consumer buying behavior, while price discount have the second largest sales promotion tools that have a positive effect on customer buying behavior. With these insights, the study provides several conclusions to increase the consumer buying behavior of Rainbow foams and plastics and recommends the company to intensify the use of sales promotion activities as customers have shown great interest and are strongly influenced by the sales promotion activities.