Effectiveness of sales promotional tools in Malaysia: the case of low involvement products.
Ndubisi, Nelson Oly
ABSTRACT
The thrust of this paper is to evaluate the effectiveness of sales
promotional strategies namely, coupon, price discount, free sample,
bonus pack, and in-store display in the purchase of low involvement
products by Malaysian consumers. The paper also recognises that certain
demographic factors such as education and income of consumers could
potentially confound the observed relationships hence, these factors
were controlled. A total of 312 consumers in Kota Kinabalu, Malaysia
were surveyed using structured questionnaire. The results show that
price discounts, free samples, bonus packs, and in-store display are
associated with product trial. Coupon does not have any significant
effect on product trial. Details of the findings and their implications
are discussed.
Keywords: Promotion Strategies, Product trial, Low Involvement
Product, Consumers, Malaysia.
INTRODUCTION
A large body of research on consumer responses to sales promotions
(e.g., Bawa & Shoemaker, 1987 and 1989; Blattberg & Neslin,
1990; Leone & Srinivasan, 1996; Huff and Alden, 1998) has
accumulated over the past few decades due to the growing importance of
this marketing lever. However, too much stress on coupons at the expense
of other equally important promotional tools, has created the need for
more work to be done in the area of investigating (together with coupon)
the effects of other sales promotional tools such as free sample, bonus
pack, price discount, and in-store display on product trial and
repurchase behaviour, especially among Malaysian consumers, whose
behavioural responses to promotional strategies are ill understood due
largely to lack of research on them.
Moreover, research on the use of marketing tools in Malaysia is
very scanty at best. And very little (if at all) is understood about the
Malaysian customers and their purchase behaviours, especially with
regards to how they respond to the various promotional strategies
practised by marketers. Since the bulk of the extant literature on these
relationships till date remains the Western perspective; there is an
urgent need for research focusing on the Malaysian consumers and the
Malaysian environment, which is unfamiliar to most readers. Since
understanding the behavioural responses of Malaysian customers to sales
promotion strategies is salient in customer management and in designing
effective sales promotion strategies, important impetuses for this
research are established.
To embark on this task, the research focuses on low involvement
products (LIP), which are generally believed to be more responsive to
promotional tools than high involvement products. Low involvement
products are those that are bought frequently and with a minimum of
thought and effort because they are not of vital concern nor have any
great impact on the consumer's lifestyle (www.marketingprofs.com).
Not all purchase decisions are equally important or psychologically
involving for the consumer. People engage in a less extensive
decision-making process, involving a less detailed search for
information and comparison of alternatives, when buying low involvement
goods and services than when purchasing high involvement items. Because
of the differences in the decision-making process between low and high
involvement products, and the high frequency of purchase of low
involvement products, this study focuses on the LIPs in order to unveil
promotional strategies that might be more effective in the Malaysian
context.
LITERATURE REVIEW
According to Shimp (2003), sales promotion refers to any incentive
used by a manufacturer to induce the trade (wholesalers, retailers, or
other channel members) and/or consumers to buy a brand and to encourage
the sales force to aggressively sell it. Retailers also use promotional
incentives to encourage desired behaviours from consumers. Sales
promotion is more short-term oriented and capable of influencing
behaviour. Totten & Block (1994) stated that the term sales
promotion refers to many kinds of selling incentives and techniques
intended to produce immediate or short-term sales effects. Typical sales
promotion includes coupons, samples, in-pack premiums, price-offs,
displays, and so on.
Coupons have been used to produce trial (Robinson & Carmack
1997). According to Cook (2003), coupons are easily understood by the
consumer and can be highly useful for trial purchase. Gilbert and
Jackaria (2002) concurring to the popularity of coupon reported that
coupon is ranked last as the promotional least widely used by consumers
and least influence on product trial. Other studies (e.g. Peter &
Olson 1996; Gardener & Trivedi 1998; Darks 2000; Fill 2002) have
reported the importance of coupons as a sales tool.
Price promotion does influence new product trial (Brandweek, 1994).
According to Ehrenberg et al. (1994) short-term peaks in sales were due
primarily to purchases made by occasional users of a brand rather than
by new customers. Furthermore, the study concluded that these occasional
users, after taking advantage of the price reduction, would most likely
return to their favourite brands in their portfolio rather than buy the
promoted brand at full price. However, Shimp (2003) and Fill (2002)
among other extant studies have documented a link between price
promotion and product trial.
With regard to free sample, another important promotional tool
often used by firms, marketing managers recognize the importance of
product trial and direct behavioural experience with a product, hence
they often mail free samples of products to consumers so that consumers
can try the products for themselves, rather than just hear about the
products (Kardes, 1999). However, Gilbert and Jackaria (2002) found that
a free sample as a promotional offer had no significance on
consumers' reported buying behaviour, whereas Pramataris et al.
(2001), Fill (2002), and Shimp (2003), have shown otherwise.
Factory bonus pack according to Lee (1963) is used to increase
consumer trial of the brand. Larger package size and accompanying
advertising of the offer tended to make the promotion noticeable
(Gardener & Trivedi 1998). Since more of the product is included at
no extra cost, consumers can be persuaded to buy the product if they
feel it represents a deal that produces the greatest value for their
money. According to Gilbert and Jackaria (2002), packs with
"buy-one-get-one-free" may not increase brand awareness before
trial purchase because the customer will only come across the product
once in the store (unlike samples or coupons), however, if the promotion
is noticeable it will facilitate brand recognition and brand recall for
future purchases. Since an additional amount is given for free,
consumers may be persuaded to buy the product if they feel it represents
a fair deal that provides value for money. Ong et al. (1997) found that
consumers appeared to be slightly sceptical of the bonus pack offer, but
somewhat more trusting of the price and quantity claimed. In other
words, believability of the bonus pack offer was weak, however, they
would likely buy one bottle and not buy more than one bottle they
concluded. The report speculated that this happens because consumers
suspect that manufacturers do raise prices slightly in conjunction with
bonus pack offerings.
Product trial involves actually trying or using a product (Kardes,
1999). According to Peter and Olson (1996), trialability refers to the
degree to which a product can be tried on a limited basis or divided
into small quantities for an inexpensive trial. Banks (2003) wrote that
with sales promotion, brands have a chance to quickly affect consumer
choice and behaviour by adding value through an on-pack offer, by
achieving incremental display or by encouraging trial via sampling
and/or couponing. According to Schindler (1998), a price promotion that
is designed to evoke attributions of responsibility could be expected to
appeal to consumers more than one that does not evoke such attributions,
and thus have a greater ability to create product trial among consumers.
Wayne (2002) found a link between sales promotion and product trial.
Chandon, et al. (2000) indicated that sales promotion may be attractive
to highly promotion prone consumers for reasons beyond price savings.
These highly promotion prone consumers may switch brands to receive
"special" deals that reflect and reinforce their smart shopper
self-perception. They concluded that highly promotion prone consumers
might try a new product that has promotion. Thomas (1993) argued that
the magnitude of planned distribution and promotion expenditures
(advertising, sales promotions, sales force, and so on) could affect
initial trial of the brand. Based on the issues and discussion raised
above, the following hypotheses are generated for verification:
H1: There is a significant positive relationship between coupon and
product trial.
H2: There is a significant positive relationship between price
discount and product trial.
H3: There is a significant positive relationship between free
sample and product trial.
H4: There is a significant positive relationship between bonus pack
and product trial.
H5: There is a significant positive relationship between in-store
display and product trial.
All told, it is important to jog the readers mind that none of the
extant literature cited above is about Malaysia. This observation
corroborates one of the key impetuses for the conduct of this study,
that is, the dearth of research on the Malaysian customers'
behavioural responses to promotional tools, which has resulted in a poor
understanding of the effectiveness of various promotional tools in the
same context.
METHODOLOGY
In this study, five consumer promotion tools- coupons, discount,
samples, bonus packs, and in-store display were investigated for their
impact on consumer purchase behaviour. Items from Garretson and
Burton's (2003) study of consumer proneness towards sales promotion
were adapted in the measurement of proneness to coupon, price discount,
free sample, bonus pack, and in-store display. Trial behaviour of
consumers were measured with items adapted from Gilbert and Jackaria
(2002).
Figure 1 shows the research model. Questionnaire was used for the
study. The population of the study consists of consumers in Kota
Kinabalu, Malaysia. The sample points were supermarkets in Kota Kinabalu
area. The survey instrument was self-administered to customers using a
mall intercept technique. Some respondents who could not answer on the
spot were given a copy of the questionnaire (to be answered at home)
with a postage paid return envelope. A five point Likert scale, ranging
from 1 (strongly disagree) to 5 (strongly agree) was used for the
construct's dimensions. A total of 420 questionnaires were
distributed and only 312 were returned, which represents a response rate
of 74%. The Multiple Regression Model was employed to predict the
relationships in the construct. The schema of the research model is
shown as Figure 1.
[FIGURE 1 OMITTED]
The regression assumptions with respect to autocorrelation (independent of residual), normality (residual is normally distributed),
homoscedasticity of error terms, multicollinearlity and linearity of
independent variables were verified before making any interpretation of
the statistical results.
RESULTS AND DISCUSSION
Demographic Profile
Out of the 312 usable questionnaires returned by the respondents,
59.6% were female respondents, and 40.4% were male. Various income
levels (in Malaysia Ringgit) were represented, for example below 24,000
was 60.9%, 24,000-47,999.99 (29%), 48,000-71,999.99 (9%), and so on.
Chinese consumers made up 51%, Kadazan-Dosuns (22%), Malays (16%),
Indians and others (11%). The ages of the respondents were as follows:
below 20 (13%), 20-39 (62.8%), 40-59 (22%), and 60 and above (2.2%). The
rate of married respondents was 46%, while singles represented the
balance of 54%. With respect to education background, 50.6% had
secondary school education and less, 26% had high school and diploma
qualifications, and the rest (23.4%) were degree and postgraduate degree
holders.
Psychometric Properties of the Instrument
Factor Analysis was performed on the questionnaire items in order
to establish their suitability for performing the subsequent
multivariate analyses. The results presented are based on parsimonious sets of variables, guided by conceptual and practical considerations,
namely acceptance of factor loadings of .50 and above (Hair et al,
1998), and cross loadings mostly below .20. In very rare cases where
cross loadings slightly exceeded .20, loadings were much higher than .50
to justify acceptance. The orthogonal rotation was employed for this
analysis (Hair et al. 1998). High communality values were recorded for
each variable, indicating that the total amount of variance an original
variable shares with all other variables included in the analysis is
high. Overall, the results in Table 1a and 1b show that the construct
measures are valid. Put differently, the measures define the concept of
study very well. Table 1 shows the factor loadings and cross-loadings,
Eigenvalues, and Variance of the dimensions under examination.
A total of 29 items loaded on 6 factors. Factors 1 to 5 contain
items measuring free sample, bonus pack, price discount, in-store
display, and coupon. Five items were used in each case (save for Factor
4) for example: (1) If a brand offers--(free sample/bonus pack/price
discount/in-store display/coupon); that could be a reason for me to buy
it, (2) When I buy a brand that offers--(free sample/bonus pack/price
discount/coupon), I feel I am getting a good buy; (3) I have favourite
brands, but most of the time I buy a brand that offers--(free
sample/bonus pack/price discount/in-store display/coupon); (4) One
should try to buy a brand that offers--(free sample/bonus pack/price
discount/in-store display/coupon); and (5) compared to most people, I am
more likely to buy brands that offer free--(free sample/bonus pack/price
discount/in-store display/coupon). Factor 4 has four items only, because
of the omission of item 2, which is considered irrelevant with respect
to in-store display. Factor 6 has five items measuring trial, for
example, coupon enables me to buy a product, which I have not tried
before, price discount makes me to buy a product, which I have not tried
before, etc. Total variance explained is 66% and item loadings are quite
high, hence, there is high validity for the constructs measures.
Although the observed patterns of item loadings were similar for
both Varimax (adopted in this study) and Oblique rotation (alternative
technique), providing grounds to assume that the instruments are
consistent, the internal consistency of the instruments were further
tested via reliability analyses. Cronbach's alpha test was used to
ensure the reliability of the variables. For sales promotional tools,
the results indicate acceptable values: coupon (α=0.81), price
discount (α= 0.86), free sample (α= 0.87), bonus
pack (α=0.88), and in-store display (α= 0.87). The
Cronbach's alpha value for product trial is 0.81. Mean score for
all dimensions are as follows: coupon (2.99), price discount (3.67),
free sample (3.08), bonus pack (3.28), in-store display (2.84), product
trial (3.22).
Relationship among Constructs
Table 3 shows the results of the regression analysis used to
determine the relationship between the promotional strategies and
product trial. Standardized beta coefficients are reported all through,
as standardized regression coefficients allow for a direct comparison
between coefficients as to their relative explanatory power of the
dependent variable (Hair et al. 1998).
The above results show that coupon, price discount, free sample,
bonus pack, and in-store display contribute significantly (F = 25.22; p
= .000) and predict approximately 30% of the variations in product
trial. The 30% explanation is considered good for a behavioural science research. Further examination of the results shows that price discount
(t = 2.334; p = .020), free sample (t = 3.483; p = .001), and in-store
display (t = 4.322; p = .000) are significantly associated with product
trial at 5% significance level. Bonus pack is moderately associated with
product trial (t = 1.900; p = .058). Hence there is enough evidence to
accept hypotheses 2, 3, 4 and 5. The results indicate that in-store
display is the strongest predictor of product trial followed by free
sample, price discount and bonus pack. There is no significant
relationship between coupon and product trial (t = 0.401, p = 0.69) at
5% significance level, which leads to rejection of hypothesis 1.
Therefore, it is conclusive that coupon is not a strong determinant of
product trial among the respondents. This may be because of the sparse use of coupon as a promotional strategy by marketers in Malaysia. As a
most rarely used promotional tool in Malaysia, many consumers may not be
familiar with it compared to other promo-tools.
The results of this study provide some useful information on the
impact of the five promotional tools on consumer buying behaviour
(product trial). With respect to consumer proneness to sales promotions,
the results show that in-store display plays a significant role in
shaping consumer product trial reaction. Moreover, the results of this
study show that free sample and price discount play significant roles in
influencing consumer product trial behaviour. This finding is consistent
with the views of Blackwell et al. (2001). Another sales promotional
tool that has important effect is bonus pack. Bonus pack is instrumental
in increasing consumer trial of a brand, thus, the more of the product
included at no extra cost, the greater the likelihood of consumers
buying the product for trial. Although, the effect of bonus pack on
product trial is lower than other promotional tools such as in-store
display, free sample, and price discount, bonus pack remains a useful
marketing tool.
Contrary to some earlier findings (e.g. Banks 2003; Blackwell et
al. 2001), coupon in this study does not have significant effect on
product trial. This could be as a result of the respondents' poor
familiarity with the use of coupons. In fact in Malaysia, the use of
coupons as a promotional strategy is not as common as the use of other
promotional tools. Marketers in Malaysia very seldom use coupons,
resulting in the tool's unpopularity among Malaysian consumers.
Zajonc (1980) had earlier shown that exposure to a stimulus enhances a
person's attitude toward it.
Control
The control procedures applied in this study include the following:
(1) examination of the role of familiarity with each promotional tool on
the impact (or lack of it) of the tool on product trial; and (2)
examination of potential confounding effects of respondents'
education and income levels.
Firstly, to examine whether consumer familiarity with particular
promotional tool is what explains its effectiveness, the study
controlled for this factor. From the result in Table 4 below, it can be
said that the weak impact of coupon on trial is attributable to the
unfamiliarity of Malaysian customers with coupon. This may have resulted
from the seldom use of this tool by marketers in Malaysia.
Further analysis confirms that familiarity is a key issue in
coupon-trial relationship. Taking coupon use at below median and above
median (inclusive), the corresponding values were assigned 1 and 2
respectively. Similarly, taking familiarity with coupon at below median
and above median (inclusive), 0 and 1 were assigned. By plotting the
graph of these dimensions, the resulting levels of product trial for
different levels of coupon usage and familiarity with the tool are as
shown in Figure 2.
Figure 2 shows that customers, who are familiar with coupon,
increase product trial as more coupon are offered. In other words, the
behavioural responses of highly coupon-familiar customers are greater
than the responses of those who are not familiar with the tool.
[FIGURE 2 OMITTED]
Potential Confounding of Education and Income Divide
There are several important demographic variables that could
potentially confound observed relationships depending on the nature of
the study. These are level of education, age, gender, and income (Minton
& Schneider 1980; Praeger 1986; Kite 1996; Morris & Venkatesh
2000). With respect to responding to promotional tools, the most
important covariates are those whose inclusion might theoretically
eliminate observed moderation effects, such as income and education.
This is because high-income earners may be less interested in few dollar
savings than their lower income counterpart; hence, they may be less
responsive compared to the low-income group. In addition, since
education and income are positively correlated, similarly more educated
consumers may be less responsive to promotional tools than their less
educated counterpart. Thus, in this research it is necessary to evaluate
and control for possible confounding effect of education and income.
Before the control mechanism was applied, the two demographic
variables, which originally had more than two groups, were recoded into
two groups for ease of understanding. Thus, educational levels were
re-grouped into non-graduates and graduates, and income into low-mid and
high-income earners. In order to introduce the recoded demographic
dimensions into the regression model, dummy variables were created for
the groups (Hair et al. 1998). In creating the dummy variables, the
first step was to determine the number of dummy variables, which is
simply k-1, where k is the number of levels of the recoded variable. In
this instance 1 (2-1) dummy variable was created as follows:
non-graduate (0), graduate (1); and low-mid income (0), high-income (1).
The results of the controlled hierarchical regression analyses are
presented in Table 5 below. These results are compared with the
uncontrolled results in Table 3 above.
The results in Table 5 show that education and income levels are
not confounds. In all the cases, the demographic variables have no
significant relationship with the dependent dimension. By introducing
each demographic variable in the 2nd stage of the hierarchical
regression, it was found (as shown in Table 5) that the significant
impacts witnessed in the price discount-trial, sample-trial, bonus
pack-trial, and display-trial relationships (see Table 3) remain
significant, and the non-significant effect in the coupon-trial
relationship remains insignificant after controlling for potential
confounds. This shows that there is no confounding effect. If education
or income is confounding the results, when controlled, the significant
effects will become non-significant, and the non-significant effect will
become significant.
LIMITATIONS AND FUTURE RESEARCH
Like any empirical research, there are few limitations to this
study. First, only one product category (low involvement products) was
considered in this study (which is a pioneer in the Malaysian context),
leaving out high involvement products, which are somewhat noted for
their poor responses to promotional tools. An interesting future
research direction is to estimate the effectiveness of these promotional
tools in high involvement product situations. Since some scholars
believe that high involvement products are not as responsive as low
involvement products to promotional tools, it is needful to verify this
view in Malaysia. This future research will help to increase present
knowledge in this area by providing empirical support for or refuting
the above supposition. Additionally, future research may take a
comparative approach between the high and low involvement products to
see if they equally or differentially respond to promo tools, and if the
former is statistically less responsive than the latter in the Malaysian
context.
There is still an urgent need to investigate the impact of other
promotional tools on product trial because research in this area is
still inconclusive. Beside the five promotional tools (i.e., coupon,
price discount, free sample, bonus pack, and in-store display) that were
examined in this study, future research may investigate other types of
sales promotions (e.g., contests, refund) on product trial. In addition,
studies that utilize data compiled by retailers that track buying and
sales promotion participation habits across various tools will add much
value since it is based on hard data rather than perceptions.
CONCLUSIONS AND IMPLICATIONS
This research has important implications on theory. The framework
provides new insights into the understanding of sales promotional
strategies and their impacts on Malaysian customers' behavioural
responses in low involvement product setting. In addition, it helps to
explain the role of familiarity with sales promotion tools. Malaysian
consumers respond more to free sample, price discount, in-store display,
and bonus pack than coupon. A plausible explanation for the weak
influence of coupon is poor familiarity with the tool. This research
shows the linkages among various promotional tools and product trial,
and thereby helps to better understand how Malaysian consumers respond
to various promotional tools offered by marketers. This is an important
contribution to the body of knowledge in this field and in Malaysia in
particular, being one of the pioneer studies in this area in Malaysia.
The results also have important implications for practitioners. One
of the major implications of this research is that firms can increase
sales by offering the right promotional tools to attract trial
customers. Therefore organisations should carefully plan their
promotional strategies, and allocate promotional budget over the
different promotion tools, giving preference to the more effective
tools. Promotions that emphasize in-store display, free sample, price
discount, and bonus pack are likely to be more effective than coupon.
Second, the findings indicate that in-store display proneness has
the strongest effect on product trial compared to other sales
promotional tools. Attractive in-store display practices are necessary
to gain the greatest sales from product trial. Third, (as shown in the
results) bonus pack, free sample, and price discount significantly
affect product trial, albeit the determinant power of bonus pack is the
lowest among other promotional tools. Thus, one of the ways to improve
the determinant power of bonus pack is to keep a regular pack along side
with a bonus pack on the shelves, in order to enable consumers to make
comparison. Such opportunity for a comparative observation will help to
enhance the credibility of the tool and consumers' confidence in
it. With regard to free sample and price discount, sellers should
continue to apply them because of their robust influences on product
trial.
Fourth, the findings show that coupon have no significant effect on
product trial. This is largely due to consumers' unfamiliarity with
the tool. Thus, it is suggested that manufacturers and retailers should
use more of coupons in their promotional efforts, with longer redemption
period, prior to which they should create greater awareness of the
benefits of coupons and how they could be redeemed. This will help
ignorant customers to be better informed about coupons and their uses.
Another probable reason for the poor influence of coupon may be because
coupons provide less shopping convenience benefits, require more skill
and effort than buying a product on sale. For example keeping the coupon
and redeeming it before expiring date, searching for a product that has
coupon, matching coupons with brands, etc can be cumbersome and time
consuming. In the other hand, price discount, free sample, bonus pack,
and in-store display can provide greater shopping convenience benefit.
Lastly, it is important to note that the outcome of this research,
that is, the observed significant and non-significant relationships
among the independent and dependent variables are not confounded by
respondents' educational and income levels. In other words, these
observations hold true, irrespective of the level of education or income
of the respondents, hence the results are generically applicable to all
income and educational groups.
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Table 1a: Factor Results for the Independent Dimensions Loadings and
Cross Loadings
F1 F2 F3 F4 F5 F6
F1--Free Sample
Free sample 1 .723 .219 .152 .172 .079 .161
Free sample 2 .742 .170 .189 .130 .130 .151
Free sample 3 .716 .129 .205 .169 .108 .066
Free sample 4 .746 .165 .155 .120 .138 .117
Free sample 5 .757 .222 .172 .144 .088 .135
(Eigenvalue = 8.98; Variance = 30.95%)
F2--Bonus Pack
Bonus pack 1 .120 .801 .163 .062 .009 .124
Bonus pack 2 .105 .848 .083 .011 .053 .103
Bonus pack 3 .233 .703 .257 .118 .124 .087
Bonus pack 4 .269 .710 .143 .127 .309 .064
Bonus pack 5 .254 .734 .211 .156 .137 .075
(Eigenvalue = 2.76; Variance = 9.52%)
F3--Price Discount
Price discount 1 .147 .216 .706 .088 .102 .161
Price discount 2 .135 .129 .726 -.049 .154 .184
Price discount 3 .126 .175 .739 .086 .193 .062
Price discount 4 .275 .065 .726 .081 .190 .018
Price discount 5 .177 .204 .792 .091 .162 .017
(Eigenvalue = 2.18; Variance = 7.52%)
F4--In-store Display
In-store display 1 .095 .113 .112 .760 .019 .087
In-store display 2 .213 .069 .066 .819 .065 .033
In-store display 3 .193 .074 .014 .789 .179 .151
In-store display 4 .203 .073 .049 .847 .128 .150
(Eigenvalue = 2.04; Variance = 7.03%)
F5--Coupon
Coupon 1 .024 .098 .057 -.046 .729 .258
Coupon 2 .139 .119 .054 -.031 .726 .148
Coupon 3 .095 .052 .197 .212 .671 -.074
Coupon 4 .136 .126 .206 .137 .691 -.001
Coupon 5 .098 .065 .315 .169 .733 .000
(Eigenvalue = 1.67; Variance = 5.78%)
F6--Trial
Trial 1 .085 .055 .121 .038 .253 .724
Trial 2 .124 .082 .149 .026 .057 .787
Trial 3 .234 .051 .046 .116 -.001 .782
Trial 4 .154 .172 .045 .212 .012 .731
Trial 5 -.095 .104 .047 .049 .022 .534
(Eigenvalue = 1.47; Variance = 5.08%)
Total Variance = 66%
Table 2: Descriptive and Reliability Analysis Results
Cronbach's
No. of Alpha
Variables Items Mean S/D Coefficient
Coupon 5 2.99 0.77 0.81
Price Discount 5 3.67 0.75 0.86
Free Sample 5 3.08 0.81 0.87
Bonus Pack 5 3.28 0.77 0.88
In-store Display 4 2.84 0.84 0.87
Product Trial 5 3.22 0.73 0.81
Table 3: Promotional Tools and Product Trial
Independent variables Beta coefficients t-value p-value
Constant 5.932 0.000
Coupon 0.023 0.401 0.689
Price discount 0.143 2.334 0.020
Free sample 0.218 3.483 0.001
Bonus pack 0.114 1.900 0.058
In-store display 0.234 4.322 0.000
[R.sup.2] = .29
4F = 25.218
Sig. F = .000
Table 4: The Role of Familiarity on the Effectiveness of Tools
Variables B Sig.
Coupon * Familiarity 0.779 0.017
Price Discount * Familiarity 0.068 0.874
Sample * Familiarity -0.28 476
Bonus Pack * Familiarity -0.457 0.236
In-store Display * Familiarity 0.356 0.237
[R.sup.2] 0.289
Table 5: Testing for Potential Confounding of Demography
Interaction Terms
with Education
controlled Dependent Variable--Trial
beta p-value
Coupon .041 .477
Price Discount .138 .025
Sample .238 .000
Bonus Pack .098 .064
In-store Display .245 .000
Education .075 .143
Interaction Terms
with Income
controlled Dependent Variable--Trial
beta p-value
Coupon .022 .693
Price Discount .145 .019
Sample .223 .000
Bonus Pack .112 .064
In-store Display .236 .000
Income .029 .563
Nelson Oly Ndubisi, Monash University Malaysia