To analyze the role of pricing, communication channels, and promotional offers in consumer responses.
To study the association between demographic factors and promotional strategy effectiveness.
To provide recommendations for devising effective promotional strategies in the water purifier market.
LITERATURE REVIEW
Sales promotion is one of the most widely researched topics in consumer behavior and marketing strategy. It is
defined as a set of incentive tools designed to stimulate quicker or greater purchase of a particular product or
service by consumers or trade (Kotler & Keller, 2016). Traditionally, sales promotions include price discounts,
coupons, free samples, gifts, loyalty programs, and contests, each influencing consumer behavior differently
depending on product type, consumer demographics, and market context.
Studies have consistently shown that sales promotions affect both consumer purchase intention and brand
switching behavior. Blattberg and Neslin (1990) argue that promotions serve as a short-term tool to increase
sales but may also lead to long-term brand preference if executed effectively. Ndubisi and Moi (2005) found
that consumers are more likely to change their purchase decisions when promotions align with their perceived
value, especially in markets where risk reduction (health, safety) plays an important role. In the context of
durable goods such as water purifiers, promotions can reduce perceived financial risk and encourage trial
purchases.
Price related promotions are among the most effective tools in influencing purchase decisions. Monroe (2003)
emphasized that consumers evaluate price not only as a monetary sacrifice but also as a signal of product
quality. In markets like water purifiers, where trust and safety are paramount, consumers often prefer
“reasonable” pricing over “low” pricing, since the latter may raise doubts about product quality. Ailawadi,
Neslin, and Gedenk (2009) confirmed that value conscious consumers respond strongly to discounts,
especially when they perceive the product as essential.
While price discounts are popular, non-price promotions such as gifts and bundled offers also play a role in
creating added value. Shimp and Andrews (2013) highlight that free gifts enhance customer perceptions of
fairness and reciprocity. Chandran and Morwitz (2006) suggested that promotions framed as “bonus packs” or
free add-ons are more effective than equivalent price discounts because they enhance the sense of gain without
reducing perceived product value. In water purifier sales, where recurring costs (filters, maintenance) are
significant, non-price promotions can increase customer satisfaction and loyalty.
The effectiveness of sales promotions depends not only on the incentive but also on the mode of
communication. According to Belch and Belch (2018), promotional communication through pamphlets, print
ads, and personal selling continues to be highly effective in markets with less digital penetration. On the other
hand, digital communication (social media, influencer endorsements, email campaigns) is emerging as a
dominant medium in urban markets (Ashley & Tuten, 2015). This duality suggests that a hybrid
communication approach is necessary in industries like water purifiers that cater to both rural and urban
consumers.
Research has shown that demographic variables such as income, age, and education moderate consumer
responses to promotions (Gupta & Cooper, 1992; Neslin, 2002). Younger consumers may be more responsive
to digital and experiential promotions, while older and middle-income groups often prefer traditional
promotional formats such as discounts and pamphlets. Since water purifiers are a necessity-driven product,
understanding these demographic differences is critical for designing effective promotional strategies.
Research Gap: Although extensive literature exists on sales promotions in FMCG and consumer durables,
very few studies have focused on the water purifier industry. Given the unique context of this market health
related necessity, trust in brand quality, and recurring service requirements promotional strategies may
function differently than in other product categories. This study addresses this gap by exploring the influence
of sales promotions on consumer purchase behavior specifically in the water purifier industry.