An examination of retailers and consumers preferences for sales promotion programs in Hong Kong

Sales promotion is value offered to the customer in a short-term orientation. The potential benefits of using sales promotions could range from attracting new customers from competitors to persuading customers to switch to brands with higher profit margins or simply inducing existing customers to buy more. Over the years, sales promotion has become a ubiquitous element of consumer marketing. However, not all promotional activities are effective. A large number of literature reviewed essentially focused on the functions of sales promotion activities (eg. Liao 2006, Gilbert and Jackaria 2002, Peattie 1998, Peattie and Peattie 1995). However, a relatively small number of the studies explicitly examined the retailers’ capability of managing ‘sales’. Betts and McGoldrick (1995) examined a wide range of factors that might influence ‘sales’, including the external environment, retailers and behaviour. Merrilees and Fam’s article (1999) relates to the drivers of effective methods of managing retail ‘sales’. Following this rationale, the primary objective of this study is to focus on the sales promotion techniques offered by Hong Kong cosmetics and toiletries retailers and to what extent these techniques are preferred by their consumers.