Consumers' Deal Proneness: A Demographic Approach

Sales promotion (deal) is increasingly becoming a powerful tool for marketers at all stages of the product life cycle, from encouraging trial to inducing brand switching to maintain loyalty. However, for effective sales promotional campaigns, a company needs to understand why consumers respond to deals. The deals must appeal directly to the target audience and be perceived by them to add value. Demographic influences on consumer responses to products promoted through deals have been the focus of many early studies. However, results have been mixed and inconclusive. Moreover, no study is known in the Indian context. This study was carried out in terms of eight deal types across FMCG and durables, pertaining to four demographic characteristics, e.g., gender, age, income and education. Significant influence of demographics, though modest, has been found in many cases. The profiling of promotion-prone consumers is expected to enable marketers to design better promotional campaigns.