Designing Customer-Oriented Non-Monetary Promotions in the Tourism Industry

ABSTRACT

In this study we examined the effects of promoted product and shopping motivation on consumers’ choice between utilitarian and hedonic non-monetary promotions using two experiments, and compared the two perspectives (i.e. benefit congruency versus justification) in terms of the power of explanation regarding the results. The two perspectives were found to be complementary rather than contrasting. Consistent with justification-based theory, relative preference for a utilitarian promotion increased when the promoted product was hedonic (as opposed to utilitarian), showing that the utilitarian promotion mitigates guilt and thus simplifies justification of choice. Shopping motivation moderated the effect of the promoted product on promotion choice, supporting the benefit congruency framework. Specifically, the relative preference for a hedonic promotion in utilitarian consumption decreased when the shopping motivation was utilitarian (as opposed to hedonic).

KEYWORDS:

• Promotion
• premium
• justification
• benefit congruency
• shopping motivation

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Corrigendum

Notes

1. This idea was inspired by the success case of “Gale’s Honey”, Nestlé’s long-established brand of honey (Mullin & Cummins, 2008). In 1994, “Gale’s Honey” conducted a strategic promotion offering a 20% on-pack coupon printed on latex. Consumers had two options: using it as a scratchcard with a chance to win a prize of £10 or using it as a 20% money-off coupon for their next purchase. The promotion was so successful (i.e. a 15% increase in sales and less than a 2% coupon redemption rate) that the brand could be revitalized.

2. We appreciate this insightful comment from an anonymous reviewer.

Additional information

Notes on contributors

Ji-Hern Kim

Ji-Hern Kim is Associate Professor, School of Business, Sejong University, 98 Gunja-dong, Gwangjin-gu, Seoul, 143-747, South Korea (E-mail: [email protected]).

Dongwon Min

Dongwon Min is Assistant Professor, College of Business and Economics, Dankook University, 126, Jukjeon-dong, Su-ji, Yong-in, Gyeonggi-do, 448-701, Seoul, South Korea (Email: [email protected]).