THE EFFECTS OF SALES PROMOTION ON PURCHASING DECISION OF CUSTOMER: THE CASE ETHIO TELECOM

Abstract

The purpose of this research is to investigate the effects of sales promotion and various sales promotion tools on the purchasing decision of customers. The researches evaluate the impact of sales promotion tools mainly, Bonus for talk time, Premium, samples, Price off, Contests and sweepstakes and purchase behavior of the customers. The target population for the research was customers of Ethio Telecom which are found at Addis Ababa in selected service centers of Ethio Telecom which represent the whole customers of Ethio Telecom in Ethiopia. A total number of 407 customers were selected including the respondents which were surveyed using by using simple random sampling and judgmental sampling through structured questioners and interview. This study gives capability of managing sales promotion by examining sales promotion programs offered by Ethio Telecom. The results of the data analysis indicate price off and bonus for talk time are associated with the product and service trial are popular and preferred by customers. The result also shows that sales promotions stimulate interest in consumers and consumers are bound to make purchase decision provided that they are offered with price off, Bonus for talk time, free sample and premium. These findings contribute to the literature relating to sales promotion and have marketing implications for those who use sales promotion tools mainly and helpful for increasing sales.