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Abstract

Effects of In-store Promotions on the Consumer's Attitudes towards

the product and the Buying Behavior.

 

Choi, Byung-Gweon

  Major in Advertising & Public Relations
  Graduate School of Advertising and Public Relations
  Hong-ik University.
  Thesis Advisor; Associate Professor Chull Young Lee

Expansion of the western-style shopping culture and a highly competitive market structure of domestic retail industry puts more weight on corporate-invested retail stores. Department stores exert all efforts to take the competitive advantages in the market through various sales promotion strategies.

This thesis observes general tendency of repayment event as a sales promotion activity and its effect on consumer's purchasing behavior. Particular concern of the study is to understand the in-store promotional effects on the on-spot buying behavior.

In order to achieve the objectives of this research, a survey was conducted and the respondents were those who are offered repayment gifts in the department store during actual promotional period.

Research hypothesis were tested and the results showed that there are significant relationships between the variables of concerns in the study.

First, the result of examination shows no differences in the attitudes toward a promotional in-store event by the age and the income level. But, there is significant difference according to education levels as to buying intention in expectation of high-price free gift.

Second, it is found out that high impulsive buying tendency has statistically meaningful relationship with attitude toward a thank-you gift event. There is a wide difference between two groups when the brand changes, which implies that that the non-impulsive groups of people has strong tendency to hold the brand-loyal attitudes regardless of sales promotion event like a repayment gift event.

Third, it was observed that the attitude toward a thank-you gift event and consumer's purchase behavior during the in-store promotional event had a positive correlation.

Forth, the analysis of the impulse buying behavior for a thank-you gift sale shows that there is positive buying groups.

The implications of the above findings would suggest that;

First, a repayment gift influences buying behavior overall. but doesn't affect images of the company. Second, the repayment promotion has a significant impact on the consumer's attitudes toward the brand preference. So, a brand would be better off doing promotion activities independently of competitive brands or products in terns of attracting more buyers.

In the process of completing this research, it was not easy task to find past research and related literature that might be of help in verifying the values of the above findings. Little research has been done to understand the effects of repayment promotion.. In order to enhance the understanding of this research topic, we need to expand investigation on the other variables like awareness of in-store ads, the medium and some underlying motives of buying behaviors in in-store environment and so forth.

Another limitation of the study is that it needs more specific measures about the customer's buying behavior during the promotion period. Especially the measurement about the change in the psychological aspects of the customers before and after the promotion period may produce insights on the relationship between the repayment promotion and impulsive buying attitudes.

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