The Impact Sales Promotion on Consumer Purchasing Decision ofYoung Consumers: Reference to Fast Moving Consumer Goods inAnuradhapura District

Abstract

Due to different reasons such as a change in the taste of consumers, intense market competition, influx of new entrants in the market, and availability of substitute products create the complexity of today’s market. Therefore, business organizations are doing many promotional activities to retain their customer base and to attract new customers. According to financial statements of many organizations in the fast moving consumer goods industry have spent a considerable amount of money to promote them because of the aforesaid competition by the substitutes. The purpose of this research is to investigate the impact of sales promotion on consumer purchasing decisions of young consumers in the Anuradhapura district with special reference to the fast moving consumer goods sector. This research is based on the aspects of changing the purchasing decision. For the purpose of studying those aspects the relevant literature was reviewed and based on that a conceptual model was established by taking free samples, coupons, premiums, discounts, and point of purchase displays as dimensions of sales promotion, and consumer purchase decision was the dependent variable. This was an explanatory study launching in Anuradhapura District and was a basic type study in nature. As the population, the young consumers were considered and using purposive sampling technique 120 individual responses were considered as the sample of this study. Distributing a structuredquestionnaire both in physical and electronic mode quantitative data were collected and they were analyzed using SPSS software and their reliability of all variables were higherthan 0.6 and further descriptive statistics, correlation and regression were tested. Finally,based on regression results, the hypothesis for coupons, discounts, and point of purchase displays was accepted and the hypothesis for free samples and premiums was rejected. The study gives an insight into the fast moving consumer goods retailer’s promotional activities and their impact on the purchasing decision. The result of the data analysis indicates that coupons, discounts, and point of purchase displays are the most effective consumer sales promotional tools associated with the consumer purchasing decision.