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Short Term and Long Term Impact of Sales Promotion on Organizations’ Profitability: A Comparative Study between Convenience and Shopping Goods

Author(s): Syeda Nazish Zehra Rizvi | Sadia Malik | Syeda Farheen Batul Zaidi

Journal: International Journal of Business and Management
ISSN 1833-3850

Volume: 7;
Issue: 5;
Date: 2012;
Original page

The research paper explores the short term and long term impact of sales promotion, through the use of financialanalysis and consumer survey respectively, offered by Pakistani companies from two diverse industries, i.e.Beverage Industry (Shezan International Ltd) and Foam Manufacturing Industry (Diamond Supreme Foam).Survey research was conducted on a sample of 200 consumers to analyze the long term impact of consumer’sperception of sales promotion by measuring its relationship with brand loyalty. The questionnaire used tomeasure the consumer perception of sales promotion and brand loyalty were based on the scale developed byAstous and Jacob in 2002 and Quester and Lim in 2003 respectively. The financial indicators were used formeasuring the financial performance of companies and Pearson Correlation, Cross tabulation and RegressionAnalysis were used for inferential analysis through the use of SPSS. Results reveal the presence of variousextraneous factors impacting the effectiveness of promotions.
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