A Study On Consumer Perception Based Price Promotion Strategy

Due to increasingly fierce market competition, promotion has become the biggest expense item in company's marketing expenditure. Price promotion has been frequently used as the most effective weapon by a lot of companies to increase their sales in short term. Under such circumstances, there is an urgent need for every marketer to improve effectiveness of price promotion. From consumer perception perspective, this article studies how to improve effectiveness & efficiency of price promotion. Firstly this article reviews former research literature on this aspect, summarize academic research results on consumer price perception, promotion working mechanism, promotion short term and long term effects. Based on literature review and practical needs, this article is to research the impact of various types of price promotion and different ways of price promotion information communication to consumer perception. Through analyzing contents of promotion advertisements on the newspaper and in the store, we find out price discount, gifts with buying and voucher rebate are 3 most favorable promotion types in domestic market, and the most popular way of expressing price promotion information is "high reference price + low selling price"comparative price advertisement. Therefore, this paper try to study the impact and influence on consumer price perception and purchase intention from 3 types of promotion and 2 expressions of comparative price advertisement in domestic market. The research results indicate that among the 3 types of promotion, price discount has most negative influence to consumer internal reference price, but consumer usually has highest value perception and purchase intention; voucher rebate promotion is lowest response and least appreciated by consumer; among 2 types of advisement expression, when promotion advisement involving high profiles both store brand and product brand, advisement expression utilizing retail source will be relatively more positive; when promotion advisement involving low profiles both store brand and product brand, advisement expression utilizing manufacturing source will be relatively more positive. 2 researches'management implication, research limitation and further research direction are also discussed in this paper. Based on this research and the former research results, this paper further summarize 3 factors that effect consumer promotion perception: economics factor, information factor and emotion factor. It also analyzes the impact of business promotion activities to the 3 factors. Based on the research result, this paper eventually provides marketer with a few recommendations of more effective promotion activities.