Promotional Strategy Preferences and Buying Decisions of Western Appliances Customers

This study assessed the promotional strategy preferences and buying decisions of the Western Appliances customers in Metro Manila, Philippines. Through a validated self-made survey questionnaire, the data were gathered from 100 purposively chosen customers of Western Appliances. The percentage, arithmetic mean, standard deviation, Pearson correlation analysis, t- test, and regression analysis were applied using data management statistics tool. The results revealed that there were statistically significant correlations between the promotional strategies and customer buying decisions variables. In particular, promotional strategies implemented by the subject firm have significantly high positive correlations with all the respondent’s preference variables such as sales promotion, advertising, personal selling, direct marketing and public relations. There was also statistically significant correlations between the promotional strategies and the customer buying decisions variables. Therefore, increase or decrease in effectiveness of promotional strategies’ implementation significantly results in an increase or decrease in the purchase decisions of customers in Western Appliances in Metro Manila.


Introduction
The retail industry of the Philippines is characterized by large market base for consumers with high disposable income. The industry maintains its momentum driven by rapid growth of the country's population, social developments, and the nation's economic growth and development. Key factors attributed to retail industry growth are changing consumer needs, population growth, increasing youth segment, rising purchasing power of the people, and consumer confidence. The retail industry is projected to rise over the long term.
The market of the retail industry is demographically diverse. Consumers prefer cheap goods but convenience stores primarily dominate the industry with high product demand.
The industry benefits from the economy's sustained growth and high private consumption.
Although the majority of the people has low income due to less agricultural production, the changing demographics offers new trends that eventually encouraged the formulation of new strategies and business opportunities to fit the changes in the consumer behavior.
One of the major key player in the country's retail industry is the Western Appliances. It offers a wide range of kitchen and home appliances, electronics, and entertainment systems. It has maintained its existence for more than fifty years offering major brands of product assortments and providing customer satisfaction through the provision of high quality products and the commitment to create value to customers.
Recognized as one of the top retailers for appliances in Metro Manila, the firm seeks to develop a competitive marketing tool to continuously cater to the changing needs of the market and to better serve them through effective communication tools that are of preference to their needs.
This study aimed to determine the perception of the customers on the promotional strategies of Western Appliances vis a vis buying decisions of customers based on sales promotion, advertising, personal selling, direct marketing and public relations. It also tested the significant relationship between the preferences of the customers on the promotional strategies and customers' buying decisions. This study provides a promotional strategy framework that benefits retail business in targeting potential market niche. It provides validation on the promotional strategies that are appropriate for a particular target.

Theoretical Background
This study is anchored on the "Factors that Influence Selection of Promotional Mix' as postulated by Tanner and Raymond (2010).

Factors the Influence Selection of Promotional Mix
As presented in Figure 1, marketers select varied types of media based on their perceptions. The framework shows a number of factors that influence the choice of elements that comprise the promotional mix. For example, the budget available affects the number of individuals that a promotion can reach and the frequency of people exposure. Firms may not get the exposure required to be successful if budget is not sufficient. Moreover, product life cycle stage also influence the amount and type of promotion used. Consumer awareness and trial are needed in purchase decisions of consumers and businesses. Products that are in the introductory stages will require a lot of funds in the creation of awareness in the marketplace.
Building awareness entails more communication in the beginning of the product life cycle. In addition, product type and purchase decisions need varied types of promotion. High

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involvement products require professional selling to build customer understanding on the product features and how the product operates.

Related Studies
There are several studies conducted on the promotional strategies and consumer behavior. For example, the study conducted by MarketingSherpa (2016) through an online survey fielded with a sample of United States consumers showed that companies need to focus on the ways customers want to receive promotions and regular updates. It was also revealed that there was strong preference of consumers to receive updates in the email which was less popular with marketers. Customers also prefer visiting websites which is less popular also among marketers instead marketers prefer attending local events with less consumers' preference.
There are strong evidence showing mismatch between the company strategies and customers' preferences. The marketers' practices to offer customers to engage with brands lag behind top choices of consumers to receive promotions and updates. There is more preference of consumers to receive print updates in the email than the tendency of marketers to offer. They also prefer to visit firm's website for promotions and updates without being contacted, while marketers prefer to use the method of laissez-faire for customer engagement. According to Ahmad (2015), the primary benefit of promotions is consumers' stimulation in comparing brands and the ability to evaluate possibilities for purchase decisions. In his study, the firms in Pakistani industries use varied promotional strategies based on preferences of consumers to boost company sales. It was evident that attitude towards price discounts, coupons, free samples, and buy one get one free are significantly related to buyer behavior.
In another study by Familmaleki et al. (2015), the effects of sales promotion on the decision making process of buyers was investigated. The increased profits and customer purchases were found to come from marketing activities related to sales promotions. The strategy was proven to be a vital marketing tool specifically in reaching targeted consumers and persuading them to buy. The strategy is used primarily to elicit an impact directly from customers' purchase behavior. Buying behavior is also influenced directly by sales promotion. The various elements of sales promotion such as price discounts, free samples, physical and social surroundings motivate buying behavior. Results of the study revealed significant relationships between price cutting, customer value, customer satisfaction, behavioral intentions, and value. It was also showed that attractive sales promotions enhance repurchases intentions of customers.
A similar study of Shamout (2016) determined the impact of sales promotion in the retail industry that involved price discount, coupons, sample, buy one get one free on the buying behavior of consumers. Findings of the study revealed that promotional tools positively induce consumer's behavior but coupons were found to have no influence on the buying behavior of customers. Sales promotion was intended to add extra product and service value within the framework of strategic marketing. It increased purchases and was found to be more effective when used when the deal is going on. This is congruent to the study of Anyadighibe et al. (2014) on the impact of personal selling in retail banks on productivity. It was found also that customer retention, sales volume, and customer relationship have statistically significant relationships.
In another aspect of marketing, public relations is an essential part of the marketing mix for brands of consumer products in establishing a level of trust and educating customers on new products and services (Dennis Rutzou Public Relations, 2017). The public relations programs, when considered as part of marketing strategy, can perform effectively as a communication tool.

Methodology
This study used the descriptive method of research. Under this method, descriptions were generated from responses that were gathered from the survey dealing with promotional strategy preferences of customers of Western Appliances in Metro Manila. This method enabled the gathering of opinions and comments from the respondents. The method is designed to gather all information regarding the present situation relative to the subject under investigation. It describes the nature as it exists at the time of the study specifically focusing on the promotional strategy preference and buying decisions of customers (Keiss, 1996;

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The respondents were selected through purposive sampling, a selective and judgement sampling technique wherein own judgment was used to choose the members of sample. According to Black (2010), representative sample can be obtained by means of a sound judgement, which can provide time and cost savings. Through personal observation at the Western Appliances Branch located in Commonwealth Quezon City in the Philippines, a total of 100 customers were chosen to participate in the survey. There were fifty (50) female and fifty (50) male customers who consented to answer the survey questionnaire.
The main research instrument was a self-constructed survey questionnaire validated by academic and industry experts. A pilot testing was also conducted to test the questionnaire validity and reliability. The survey questionnaire consisted of statements related to the promotional strategy preference and the buying decisions of customers answerable by a range of scale from 5 as "strongly agree" to 1 as "strongly disagree." An unstructured interview was conducted at random respondents to elicit more information. The consent, safety and confidentiality of the respondents and their answers were assured.
The data gathered were treated with various statistical treatments such as arithmetic mean, standard deviation, Pearson correlation analysis and t-test. The strategies aimed at increased sales in the short run are perceived to be effective, offering better value to customers causing immediate responses of buyers for purchase decisions and actual product purchase. According to Daramola, Okafor and Bello (2014), this is brought by aggressive sales promotion, hence, organizations must be aware of the most appropriate sales promotional strategy needed to achieve marketing objectives. It is congruent with Familmaleki et al. (2015) that there is direct impact of sales promotion on customers' buying decisions and behavior. Inducing promotional strategies of price discounts, free samples and social surroundings motivate customer's purchasing behaviors and behavioral intentions. Attractive strategies of sales promotion also enhance repurchase intentions and customer satisfaction.

Findings and Discussion
As shown in the table 2, respondents showed preference on advertising strategies which demonstrated effectiveness and ease of product use (WAM=4.09) and the use of web technologies and tools used to build visit frequency and store traffic (WAM=3.89), advertising strategies are perceived to result in cost effectiveness for business development (WAM= 4.05). Their perceptions also show agreement that customer learning changes behavior towards product purchase (WAM=4.11) and brand comparison and purchase evaluation are possible through advertising strategies of publications and campaigns (WAM=4.15). All these statements are rated "Agree."

Table 2 Customers' Perception on Advertising Strategies
The average standard deviation of 0.737 describes the homogeneity of the responses regarding advertising preferences of customers that can lead to buying decisions and actual purchase of the respondents' product offerings. The low standard deviation shows small dispersion of data points from the mean indicating accuracy of the mean value for the sample. The advertising strategies inform them of the existence of the products and the availability of all information necessary in making evaluations that ascertain product performance which meets customer level of product expectations. It is consistent with that of Furaji et al. (2013) that advertising directly influences behaviors and attitudes of customers.
It is used by firms as a major tool to increase awareness on products in customer's mind essential in making decisions to purchase.
As presented in Table 3 Judging from the low overall standard deviation score of 0.658, shows homogeneity of respondents' responses.   finding shows customers perceptions of their preference for the promotion tool that direct marketing strategy adopted by the subject retail firm is providing customers products and services benefits suitable to satisfy their specific needs. As customers have less time and energy to explore in the market, direct marketing strategy provides them with all necessary information that aid them in their decisions for buying. As mentioned by Tushar (2014) that there is positive effect of direct marketing on consumer buying decisions.
Perceptions of respondents on promotional preferences for public relations strategies are shown in   As presented in Table 6, respondents agree on the capability of sales promotion strategy to induce customer behavior to buy and test the product; coupons, samples, product discounts, and premiums influence customers to buy; price discounts induces brand switching and sale of product earlier than planned; short term incentive tools stimulate product and increase buying quantities; sales promotion creates value for money that results in immediate product purchase, indicated by the mean values of 4.08, 4.26, 4.08, 4.00, and buying decisions are shown by the small standard deviation values for all sales promotion indicators.  Paramola et al. (2014), which considers sales promotion strategy as the most prominent promotional tool that leads to good perceptions of the public and ensures product loyalty. When sales promotion strategies are aligned with the needs of target customers, positive reaction and customer attraction can be evoked.
Buying decisions of respondents based on advertising strategies are presented in      The findings shown in Table 10

This finding implies awareness of the respondents on the involvement of Western
Appliances in promotional activities that can be measured in the areas of social activities, charity, customer loyalty support, acceptance of complaints and criticisms, and addressing issues and problems on health and environment. This is in relation to the study of Familmaleki (2015). Public relations strategy has the capacity in closing the gap between how the public views the firm and the way the company would like to be seen by its public.    promotion, advertising, public relations, and personal selling on consumers buying decisions and found significant effects of all the independent variables on customer buying decisions, with sales promotion having the highest effect. This finding is supported by the study of Ndubisi (2005), providing evidence on the relationship of promotional preferences, product purchase and repurchase which are general across male and female customers. The preference for promotional strategies of sales promotion, advertising, personal selling, direct marketing, and public relations do not differ based on gender. However, it contradicts Morgan (2017) who noted that various differences exist between male and female in the area of communication.  As presented in Table 13, Table 14, the Analysis of Variance shows the significance of the regression model to explain deviations in the promotion strategies variable and the independent variables of buying decisions statistically and significantly predict the dependent variable of promotion strategies. The value of ρ equivalent to 0.000 less than 0.05, shows model fit of the regression data, with the model, significant at 95%. Thus, the model is accepted and R² is significantly different from zero. The F-ratio in the ANOVA test shows fit of the regression model for the data.

As shown in
The F value was used to determine statistical significant predictive capability of the model as a whole. F-test value of 20.06, rejects the null hypothesis of no linear relationship between the variables with the dependent variable and the model has predictive capability where all regression coefficients are not equal to zero. The test is highly significant, with R² not equal to zero, there is linear relationship between independent variables and the buying decisions variable in the model, with 95% confidence of the ability of the regression model to explain the dependent variable.  statistically significant. Changes in the predictor variables of sales promotion, advertising, and personal selling, direct marketing are associated in buying decisions of customers. This finding further implies that changes in the level of promotion strategies variables will influence the level of customer buying decisions.

Table 15 Regression Coefficients of Promotion
Results of the analysis is supported by the study of Mughal et al. (2014) which provides evidence of the positive attitude of customers towards preferences of the promotional tools that result in buying decisions and behavior. The buying behavior of consumers are motivated by various kinds of promotional techniques which can include sales promotion, advertising, personal selling, public relations, and direct marketing. Table 15

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Values for Variance Inflation Factor (VIF) shows how much variances are inflated by multi-collinearity which occurs when independent variables are not independent from each other. Due to collinearity that can exist in the regressor promotion strategies variables, the variance inflation factors were used to measure the inflation in the variances of the parameter estimates. The VIF values of 2.114, 2.656, 2.021, 2.336, and 2.615, for sales promotion, advertising, personal selling, direct marketing, and public relations, respectively, less than 10, indicates the absence of potential significant multi-collinearity between the independent variables of promotion strategies. Regression of the five promotion strategies has R² values less than 90%.
Tolerance is a collinearity diagnostic factor determined in the study to identify multicollinearity in the explanatory variables. The small values of 0.473, 0.376, 0.495, 0.428, 0.382, for sales promotion, advertising, personal selling, direct marketing, and public relations, respectively, greater than 0.1, suggest significance and the absence of multicollinearity.

Conclusion
Based on the findings derived from the study, respondents agree on the customers' promotional preference for sales promotion, advertising, personal selling, direct marketing, and public relations which are perceived to influence their buying decisions. Perceptions of respondents show that their buying decisions towards Western Appliances' products and services are due to their preferences for sales promotion, advertising, personal selling, direct marketing, and public relations. There are significant high positive correlations between all the promotional strategies variables and customers' buying decision variables which imply that a change in the level of effectiveness of the implementation of the promotional strategies' variables will influence the level of customers' buying decisions in a positive linear direction. There is no significant difference in the promotional preferences of customers when grouped according to gender. Promotional strategies of sales promotion, advertising, personal selling, direct marketing, and public relations variables are predictors of customer buying decisions. Effectiveness of the promotional strategies in increasing the buying decisions of customers provides a framework for the adoption of the promotional strategies for the firm's competitiveness.

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It is recommended to implement strategies to enhance the promotional strategies in order to continuously induce the buying decisions of existing and potential customers. The company is expected to regularly monitor the implementation of the promotional strategies which influence buying decisions as they have been found to be positively and significantly correlated. The continuous update of the promotional strategies would be a significant predictor of buying decisions. Further studies focused on the other variables not included in the study, which are likely to influence buying decisions of customers are highly encouraged.