THE EFFECT OF SALES PROMOTON TOOLS ON CONSUMER PURCHASE DECISION OF CONSUMER OF WALIA BEEER BRANDS.

Abstract

Brewery Industries have been one of the most rapid growing markets in this country for the last decade. Companies should have to use sales promotion effectively to stay in the market. Thus this study explores the influence of sales promotion tools like: price discount, coupon, Free Sample, Sweepstakes and Contest, and Buy one Get one free on consumer buying behavior case of Walia Beer. Data was collected from customers of Walia Beer. A sample of 384 respondents was selected using non probability sampling method. The researcher selected participants of the study from different sub-cities of Addis Ababa by using convenience sampling method due to large number of population. The data were collected through self-administered questionnaire which resulted in 370 responses and out of this 357 statistically acceptable response. After that, the data was checked through testes like; validity by KMO and Bartlett's Test, Reliability by Cronbach’s alpha coefficient. Data analysis was done using descriptive analysis, correlation, regression and one-way ANOVA using SPSS 20 Version. The Pearson correlation coefficient used in the study signifies that all independent variables (tools of sales promotion) and the dependent variable (buying behavior) have strong positive relationships with one another. The result from regression analysis concludes that all sales promotion tools that listed above have significant influence on buying behavior (Price Discount, β1 = 0.13, Coupon, β2= 0.21, Free sample β3=0.24, Sweepstakes & contest, β4 = 0.255 and B1G1F, β5= 0.20) at 95% confidence interval. It was also concluded that this overall sales promotion tools have a significant impact on consumer buying behavior. The results are useful in identifying the influential components of sales promotion and it will help Walia Beer as marketing strategy. As evident from the finding section that the study was conducted in Addis Ababa only, applicability of the results in other countries side may result differently. Further, as the study is recommends the company should focus on associating their products with the consumers through incentive of sales promotion they consumer prefer mostly so as to retain their existing customers and attract the new ones.