Journal of Marketing Strategies, Volume 3, Issue 1, January 2021

IMPACT OF PROMOTIONAL TOOLS ON CONSUMER

BUYING BEHAVIOR: A CASE OF FMCG INDUSTRY

Ahsan Ali1 and Khair Muhammad2

ABSTRACT
Instantaneous changes in global socio-economic scenario due to rapid
uncertainties and emerging technologies have framed a cutthroat competition
between the market players across industries. This colossal change in
business structures has altered the consumer demands and driven business
focus to search for unique marketing tactics to attract, bring-in, and retain a
larger customer pool through various promotional tools. The importance of
unique marketing strategies for a business is undeniable as the exclusivity of
marketing tools is the core idea to draw customers’ attention towards the
products. Marketers today are relentlessly trying to decipher new strategies
through which changing customer demands could be catered and seek for
innovative ideas to attain customer attention. This research project thus
intends to test the effect of different promotional tools and their impacts on
consumer buying behavior. Every company hence tries to execute various
forms of marketing tactics aimed to increase sales and to maximize business
market share. Promotion is a mode of marketing that aspires to introduce and
at the same time persuade consumers to buy the products offered by the
business to enhance the sales volume and increase firm’s profit margins.
Hence, the purpose of this research study is to examine the impact of different
promotion tools which include free samples, product price reductions, free
coupons, and buy one get one free offer on consumer buying behavior in
FMCG industry in Pakistan. This study has been conducted in Karachi, and
a total of 208 respondents was selected using the systematic random sampling
technique. The data was collected through the self-administered structured
questionnaire which was adopted from previous similar studies. Statistical
tools were employed using SPSS and SmartPLS3 software to analyze the

12
Students, Benazir Bhutto Shaheed University Karachi

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gathered data and find some meaningful results. The significance of this
research is extensive as the key findings may help organizations to devise
appropriate promotional strategies to minimize their costs and maximize
market share as well as profits. Moreover, the practical contributions of this
research persist in the identification of sales promotion strategies that are
pertinent to the management of clients in the FMCG market in
Pakistan. Hence, this study will be beneficial for organizations to minimize
their costs related to sales promotion and will provide the right promotional
inducement, marketing strategies for business to increase sales by creating
purchase behavior practice for display.

Keywords: Sales Promotion; Consumer Buying Behavior; Price Reduction;

Free Coupons; Free Samples; Buy One Get One Free Offers.

INTRODUCTION
Promotional tools have become the most potent instrument for marketers to alter the perception
of customers towards a brand and also to stimulate purchase interest. As market competition
intensifies, marketers must embrace various strategic techniques to make their products
sustainable and also to attract a wider pool of customers. This research will clarify the consumer
behavior that is all about individuals, groups, or organizations and all the activities related to
the purchase, and disposal of goods and services, and also how the consumer's emotions,
attitudes, and preferences affect buying behavior. Now a day, businesses are focusing on
various tactics to attract as well as retain customers through several sale promotion strategies
like giving a free sample that is a test trial of a product given to consumers in shopping malls,
supermarkets, retail stores, or through other channels. Similarly, price reduction or we can say
value decrease that is the act of reducing the selling price of merchandise by giving a discount,
deduction in the value of something. In other words, we can say the act of decreasing something
is also a promotion strategy. Furthermore, by giving coupons to understand coupon is a voucher
entitling the holder to a discount off a particular product. In other words, we can say a form in
a newspaper or magazine which may be sent as an application to purchase or to inform.
Moreover, but not least by giving the offers like buy one, get one free in other words two for
the price of one is a common form of promotion strategy.

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The Business environment has gotten to be exceptionally competitive within the 21st century
due to the speed of mechanical alter, framework, and get to access the data around the globe.
This has made the environment exceptionally complex and shopper inclinations keep changing
since of the low exchanging fetched within the market. Due to this expanding request of
consumers within the showcase, the administration of organizations ought to increment their
consideration on attracting and holding its customers.
The favorable result of every business is linked and achieved by promotions. Promotions help
the business to reach the maturity level of the product and get market fame. Promotional
activities are very useful for the business. Promotional activities include sales offering to the
customers which affect the behavior of customers while purchasing any desired product. It is
the rapid action process to seek customer attention for buying or consuming the new brand
product and increasing its sales. It is an activity based on a short process. Sales promotions
include the techniques by which consumers get stimulated to give attention to the product. It is
not a process of creating long-term affection for the customers as it is provided for a limited
period. Sales promotional activity is for capturing more customers and making old loyal
customers along with them. Sellers use these promotional tools for boosting profits for small
periods. Promotion processes are the chunk of the marketing mix that is used by many
promotional tools that increase the gaining large profits.
By using sales promoting tools marketers are widening their business day by day by gaining
more profit on the product. As all marketers are using these techniques frequently therefore it
has also increased the competition in the market. Moreover, show offing the product on the
screens also helps in capturing the new customers.
FMCG - Companies in Pakistan

Vegetable Oil Cooking

Sweets & Confectionery Manufacturers & Suppliers
Cookies & Biscuits Manufacturers & Suppliers
Fruit & Vegetable Juices
Olive Oil
Dairy Farming Companies
Ice Cream & Frozen Desserts Manufacturers & Suppliers
Chewing Gum

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Background & Industry Brief:

Today corporations or business organizations spend an extensive amount of the budget on sales
promotion activities. The main idea behind offering such promotion activities is to make the
goods more enchanting and valuable to the customers. The organization intends to alter
consumers’ buying behavior and persuasive towards the purchase of the product or service
which they are offering. The purpose of this study is to find the impact of various promotional
tools on consumer buying behavior although various studies have measured the impact of
promotional tools, but the study discusses the impact of free samples, price reduction, coupon,
buy one get one free & consumer buying behavior. We are taking the retail sector (FMCG or
other) to conduct the research.
FMCGs we can say, Fast moving customer goods, also called buyer bundled merchandise, are
items that are sold rapidly and at a moderately minimal effort. Models incorporate non-tough
family merchandise, for example, bundled nourishments, drinks, toiletries, confections,
beautifiers (cosmetics), over-the-counter medications, dry products, and different
consumables.
RESEARCH STATEMENT
The purpose of this research is to examine the impact of different promotion tools (free
samples, price reduction, coupon, buy one get one free) on consumer buying behavior. The
promotional tool's intensity may in turn influence the consumer buying behavior in the FMCG
market. Thus, the target of this research is to find out the relation of independent variables free
sampling discount with the consumer buying behavior. Do these promotional activities impact
the behavior of customers positive or negative?

RESEARCH QUESTIONS
To meet the research objectives following adaptive research questions were formulated.
RQ1: Do the sales promotion tools (coupons, sample, price reduction and buy one get one free)
have a significant impact on consumers’ buying behavior?

OBJECTIVES OF THE STUDY

To analyze the impact of different promotional tools on consumer buying behavior which may
affect the purchasing behavior of consumers and sales promotion and lead to an increase in
sales and business performance. It helps to identify sales promotion tools so companies or
organizations can implement that promotional tools.
SIGNIFICANCE OF THE STUDY
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To study the reaction of different tools to promote sales on the buying behavior of consumers.
Therefore, research on promotional tools is important to understand most of the tools that
influence competition with its competitors. Also, the purpose of this is to study closely the taste
of the customers in the various promotional tools. With this information, can marketers and
retailers plan their resources to gain maximum profit? This study examines the relationship
between promotional tools and impulse buying of the product by consumers. Research on
promotional tools is important to understand the most powerful tools to compete in the market.
Companies then earn a lot of money and expend a hefty cost on promotion but its obvious
impact on Consumer purchase is not clear.

SCOPE OF THE STUDY

With the help of this information, retailers and marketers can make use of their resources to
get maximum profit. This research will play a key role for organizations because every
organization wants to minimize costs and maximize profits. The practical participations of this
research are in identification of sales promotion tactics that are relevant to the management of
clients in the first place in Pakistan.
This study is beneficial for organizations to minimize their costs related to promotion tools.
This study will provide the right promotional inducement, marketing strategies using business
to increase sales by creating purchase behavior practice for display. Thus, organizations must
set about to put a lot of money on these tools and situational factors are more attractive.
LITERATURE REVIEW
Impact of promotions on consumer buying behavior
By using promotional tools, many products or services can be sold. Manufacturers or retailers
give promotions at the store that affect customer preferences and interest to buy it. The buying
decision of a person most of the time is the same, but the whole process is not implemented by
the customer. It depends on need recognition, information search, alternative evaluation,
buying or purchasing decisions, and post purchases (Malombeke, Searang, & Pangemanan,
2014).
According to Mughal, Mohi-ud-deen, and Ahmed (2014) promotion is a tool, used by the
retailer or manufacturer to attract customers and buy more products and services. Increase in
sales, high-quality stock, and engaging many new customers somewhere these all depend on
promotional strategies. Whenever a customer changes a brand, the reason behind changing his
mind could be a great deal to build a smart buyer self-perception. The perfect promotional tool
can be a boost to generate more revenue from sales. Similarly, buying behavior is a

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continuously changing and evolving topic. With this fast-changing world, the demands and
trends are also changing quickly. New lifestyles have encouraged consumers to try things,
adopt new fashions. Despite their low financial capabilities, today's generation looks for new,
trendy stuff. That's where markets take advantage by promoting their brands considering the
budget of their consumer market, they include various catchy offers to bring new customers to
their nets. Purchasing behavior is often ignited by the options available for consumers which
vary in price and offer included. Therefore, it’s understandable that engaging consumer
behavior helps the market to sell more and introduce new products (Ashraf, Rizwan, Iqbal,
Khan, 2014).
According to (Malombeke, Searang, Pangemanan, 2014). Consumer buying behavior is very
important to understand the customer's behavior. It is important to study the demand of
consumers because it helps the selling and convincing the consumers for buying the
manufacturer product. Consumer buying behavior is the study of how to make customers buy
the product. Marketers recognize the need of the customers.
Similarly, Consumer's buying behavior has been defined and studied deeply and thoroughly in
these studies researches it has been identified that there are a lot of factors which can affect
consumer buying behavior. The result sure that the promotional tools have a great impact on
the consumer buying behaviors for example the blonde changing for choosing time change the
quality and brown or also can be switched off. However, it has been seen that consumers
purchasing decisions depend on the sensitivity of the price the consumers are always attracted
towards promoted products of sales. The four-point which can explain the consumer buying
behavior and decisions. Some other factors can be influenced on the customer buying behavior
and relations for example cultural and fundamental factors other suicide societal factors and
economic factors (Shamout, 2016).
Furthermore, Personal factors are key in framing one's behavior of choice towards the daily
routine. These factors can be counted as financial, social, and personal health. Therefore, when
the company develops a product, they connect it with the personal behaviors of their potential
consumers. Without understanding consumer's social and financial status market may not be
able to launch successful products, even if they are launched, their sustainability would be an
issue for the market. (Rehman, Yusoff, Zabri, and Ismail, 2017).
Similarly, (Rasool, Mahmood, 2018) indicate that manufacturers or retailers have to know how
to deal with buyers to satisfy their needs by understanding the target of each market to increase
sales revenue. There are many buyers with different manners and behavior so, the goal of the
seller is to satisfy the buyer by need recognition, attracting buyers towards products or services
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which is offered by manufacturers or retailers. Sellers must have to know how to use the perfect
strategy to increase sales revenue. The strategy may include free sample offers, free coupons,
price reduction, buy one get one free offer, and Communication-behavior. Communication-
behavior needs to be focused on because through communication the seller can be able to
inspire the buyer to make a purchase decision. The seller must understand what the customer
wants, needs, and demands or convince customers in an effective way to make a purchase
decision.
Other studies found that many retailers or manufacturers use promotional tools to attract current
and potential customers to buy products and services. The motive of promotional tools is to
increase the demand to fulfill needs and create desires to promote goods and services.
Promotional tools include free sample offers, free coupon offers, buy one get one free offer,
and price reduction offers. The promotional tools help us to understand how different &
multiple customers respond towards products, services which is offered by the market and to
understand the impact on Consumer Buying Behavior while making purchasing decisions. By
using the perfect strategy, you can increase the sales revenue and get more profit (Imtiaz,
Maqsood, Mehmood, and Idrees, 2019).
While other studies found that It is very often said we buy what we demand therefore this
notion is developed that better and engaging marketing brings new directions to products.
Better marketing and promotion attract new buyers and develop trust among old consumers.
With the new developments of technology and new forums marketing agencies have more
reach to consumers based on their needs and behaviors achieved by data mining. Therefore,
with the revolution of the internet and mobile technology marketing became more focused and
specialized according to the consumer personality (Imtiaz, Maqsood, Mehmood, Idrees, 2019).
Furthermore, sales promotion is a fundamental marketing tool for manufacturers as well as
retailers. Sales promotion is used to increase sales. It is a motivation for customers to buy more.
Sales promotion includes free sample offers, free coupons, price reduction and buy one get one
free offer also a retailer or manufacturer promote their product or service by using strategic
communication method. A retailer must focus on customer reactions while using sales
promotional tools. By using sales promotional tools, a retailer or manufacturer can accelerate
the purchase level of customers. Sales promotion can stimulate the customer to purchase in
terms of behavior responses (Nasir& Bal, 2020).
Hypothesis - 1: - Sales promotional tools have a significant positive impact on Consumer
Buying Behavior.

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Frame of mind towards free coupon offers

The word coupon is associated with those customers who are eligible to acquire vouchers to
get an allowance on the product at its usual price. Free coupon offers help to get a price discount
on a specific product. Coupons are useful for trial purchase of any product or service. Free
coupon offers can be a strong brand switching tool. By giving coupon offers a manufacturer or
retailer is promoting their brand, product, or service (Mughal, Mehmood, Mohi-ud-deen,
Ahmed, 2014).
Similarly, the word coupon advertisement is related to those customers who get benefit from
the products at the original price coupons are defined as priceless on a specific product, for
which customers cannot purchase at its original price. Coupons are easily approachable and
convenient to understand by the customer and are very useful for trying your product for the
first time. (Aurangzeb Mughal, Asif Mehmood, AmmarMohi ud din, Bilal, Ahmed, 2014)
According to (Shintia Malombeke, David paul Elia Saerang, Sifrid S Pangemann, 2014). It’s a
great way to run a storewide promotion on a product, goods, or all the items in which you are
doing business. There are some customers which try to purchase less but for next time offer of
any good item in your brand. They do not overthink and shop as much as they can because of
your coupon benefit. Therefore, coupons are the most beneficial way of marketing your
particular product.
Furthermore, free coupon offers can be a package for customers, through free coupon offers a
customer can save money on a normal product or service. Manufacturers or retailers provide
free coupon offers to give discounts on a specific product or service. By giving free coupon
offers customers can take an interest, build trust in a newly launched product or service, free
coupon offer is one of the strategic tools of sales promotion that affects purchase decision
(Ismail and Siddiqui 2019).
Other studies found that the coupon is applied to those consumers who can get a discount on a
normal product. discount in the sense of vouchers, certificates that are used for lower price,
products. By going coupons we are reducing the cost and providing brand awareness to make
loyal customers. A free coupon is an important tool in advertising activity. The brand must not
focus on creating the unsuccessful coupons but also focus on marketing activities .hence
through free coupons the customers can attract towards the newly launched product. The
product will be more impressive when the customer sees a free coupon offer. The assumption
of this study is there is a positive impact of a free coupon on consumer buying behavior.
(Imtiaz, Masood, Mehmood, Idrees, 2019).

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Similarly, a coupon is a package for the consumers that provides the benefits to the customers
in the sense of saving money. The coupon is offered by manufacturers or retailers which gives
discounts to the coupon holders. Nowadays, free coupon offers are the most popular promoting
tool in the retailing industry. Retailers and manufacturers found evidence about the faith of
customers in free coupon offers and also, they mean customers are taking interest in buying
products on free coupon offers. It is one of the strategic tools in promoting activities that mat
an effect on a brand in the sense of categorization, choice in the sense of preference, and also
it influences behavior. Free coupons are acceptable while making some savings for customers.
It very effective while making the purchase decision (Ismail & Siddiqui 2019).
According to (Samreen, Mashhood, Ali& Ahmed 2020) A coupon is a transactional tool
through coupons the customer can get discounts on purchasing similar products in the future.
The reason behind changing manufacturers or retailers one to another is somehow, based on
availing coupon offers. Customers have the willingness to change their preferences to avail
offers. A free coupon offer is an opportunity for customers to get discounts on selling price
through the free coupon offer a manufacturer or retailer communicate to the customers to
purchase more newly launched or existing product.
Other studies found that the coupons grant specified savings on selected products.
Manufacturers or retailers sponsored coupon offers directly by emailing, dropped door to
doors, or distributed through a central location, media-magazine, newspaper, or free-standing
inserts (FSI). A free coupon offer is an excellent strategy to stimulate sales, especially in the
short term (Abebe, 2020).
Hypothesis - 2: Free coupons have a significant positive impact on Consumer Buying
Behavior.

Frame of mind towards Free Sample offers

A free sample gives acknowledgement about a new product to the market to generate demand.
Sample can be small but must be in large quantity to give a great experience of your product
to the targeted market you can say samples are the representative of your product. When the
demand for products increases then you can stop providing free samples (Danjuma, 2012).
According to (Ashraf, Rizwan, Iqbal, Khan, 2014) Free sample offer is a trial package for
customers given by the manufacturer or retailer. Before purchasing the customer has the
opportunity to try and buy products in near future. Manufacturers or retailers give free sample
offers because they want to test direct behavioral experience with a product. The customers can
test by themselves rather than just hear about the product.
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Similarly, Free sample is the process of giving samples or trial packets of the manufactured
product free of cost to the customers, to attract them and introduce them our product customers
use the samples on a trial basis and they are provided or told the advantages and features of the
product so that they buy the product in future. free sampling is further used by the traders
mostly by the help of providing free samples marketers analyze the value of given merchandise
testing and they get the direct behavior experience of customers with the product. according to
lanners a free sample have a positive impact on the sales behavior of the product for the product
sales. The assumption of this study is there is a dominant relationship between consumer
buying behavior and free sampling on product sales according to the above research. (Ashraf,
Rizwan, Iqbal, Khan, 2014). Other studies found that When a company produces a new product
no one knows that product in the public to introduce that product in the market marketers use
different tools of marketing to create knowledge about that product public, free sampling is
also one of the most important tools to introduce the newly launched products. In free sampling
people get the product by the salesperson to use it and have that sample free of cost samples
creates interest in the consumers. The sample is a somewhat small amount of product for
consumer testing. Similarly, free samples techniques are to increase our sales. The assumption
of this study is free sampling greats a positive relationship with consumer buying behavior.
(Ahmed, Mehmood, Ahmed, Mustafa, Khan, Yasmeen, 2015).

Furthermore, the free Sample method is used to induce customers to try newly launched
products. It depends on the product's nature and time requirements. The free Sample tool is
very effective to stimulate behavior towards purchase decisions, engaging customers to their
brand preferences. It helps to increase sales of a promoted product (Shamout, 2016).

Hypothesis - 3: Free samples have a significant positive impact on Consumer Buying

Behavior.

Frame of mind towards Price reduction

A price reduction Acknowledge the customers to purchase products at a lower price for a
specified period. It may also use to take attention away from a competitor. Price reduction
offers are used to drive-up short-term sales. price reduction can eliminate the old stock
(Danjuma, 2012).

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According to (Ashraf, Rizwan, Iqbal, Khan, 2014) Price reduction is a common tool for
offering a good discount that is openly displayed on the product. A customer can take benefit
from the price reduction while making a purchase decision. Price reduction is the limited period
offers, customers pay attention to price-off promotion while purchasing the product because of
the price consciousness of the customer.
Similarly, it is the sales promotional tool in which price is reduced for the customers, it is for
a limited period which helps in increasing sales. Fill in 2002 said that price reduction is the
well-known tool for offering a discount on the purchasing of the desired product buys the
customers. The product test can be gained if the price is cut from the real price of the product.
This study assumes that price reduction plays a positive impact on promoting sales. (Ashraf,
Rizwan, Iqbal, Khan, 2014).
Similarly, it is very important and commonly used to the promotion of promotion price
reduction is applied for a specific period which is displayed on the product while buying the
product the consumers are more attention more attracted in price reduced products (Meo,
Abbas, Sajjad, Rizwan, Bukhari, and Hameed, 2014).
Furthermore, a reduction describes the discount on the regular selling prices of any good or
service, through this method a manufacturer or retailer can attract the consumers and boost the
sales. The reduction affects the way customers think and behave while purchasing any product
or service. The reduction can be classified into two categories: the first is price discount "on
sale items" and the second is a bonus pack on "bulk items". The price reduction contains a
certain percentage discount while making the deal, through price reduction a manufacturers or
retailers convenience the customer to purchase more products from them. Also, discounts can
be classified into two categories the first is "quantity discount" and the second is "seasonal
discount" (Abdi, 2015).

Hypothesis - 4: Price reductions have a significant positive impact on Consumer Buying

Behavior.

Frame of mind towards Buy one get one free offer (B1G1)
B1G1 is defined as an extra product is offered at a normal price but with the great improvement
in the package to the customer through this, a customer can easily attract towards product or
service because there isn't any additional cost for to get double in quantity and this promotion
method of sales promotion shall be more valuable by customers, reason the products or services
are more convenient to purchase if the customers have the sense of how to save the money
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(Mughal, Mehmood, Mohi-ud-deen, Ahmed, 2014). Similarly, buy one get one is the effective
tools used for promotion. It affects the behavior of consumers for buying the product if there
is one more or extra product is attached to the men product it influences customers to buy the
product buy one get one free call tells favorable effect on consumer buying behavior. Buy one
get one is the technique used for sales promotion in which additional products are offered by
the manufacturer to the customer to use and creates attention or interest in the consumers. More
products are offered at actual prices with more quantity. (Meo, Abbas, Sajjad, Rizwan, Bukhari,
Hameed, (2014).
Furthermore, it is the behavior of the consumer to search for something new as it is one of the
buying behavior of the consumer. Consumers buy affordable products they search and analyze
the wealth factor to buy the product. Buy 1 get 1 offer creates interest in the consumer's mind.
This study assumes that it has a positive effect on consumer buying behavior (Ahmed,
Mehmood, Ahmed, Mustafa, Khan, Yasmeen, 2015). Other studies found that It is a
promotional tool that offers the consumer more on paying a few higher prices. Consumers can
comfortably influence the purchase of the product because consumers analyze and understand
the value of the additional cost. If the additional value is included in the product by the
manufacturer it will make the consumer have attention to it as it will be seen more on paying
additional money. The extra quantity of the product encourages people to buy the material as
an extra quantity of the material is given by manufacturers. It must be visible to all in the
display. This study assumes that it has a positive relationship with consumer buying behavior
(Imtiaz, Mehmood, Idrees, 2019). Similarly, B1G1 is one of the sales promotional tools used
by manufacturers or retailers to clear the stock and also promote the products at the same time
by using exciting packaging to attract customers. Through B1G1 a retailer or manufacturer can
instantly grab the attention as the customers are getting double on single item price. (Samreen,
Mashhood, Ali, and Ahmed, 2020). Thus, one of the reasons behind the increase in sales can
be B1G1 offers.
Hypothesis - 5: B1G1 offers have a significant positive impact on Consumer Buying
Behavior.
CONCEPTUAL MODEL

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RESEARCH METHODOLOGY
The data for this study is collected by the questionnaire through online survey (google forms)
due to COVID-19 pandemic. The purpose of this research is to study the relationship between
different types of promotional tools and consumer buying behavior related to fast-moving
consumer goods. The nature of this research is descriptive and follows the quantitative
approach to collect the data and based on the literature review test the hypothesis which is
developed. Independent variables for this research are “free coupon offers, free sample offers,
price reductions, and buy one get one free offer. Also, the dependent variable is consumer
buying behavior. The area of the research is at Karachi, Sindh, Pakistan and the research is
conducted in year 2020.
Research Design & Procedure
The type of study is quantitative and explanatory as we are testing the hypothesis. The scope
of this research is applied research because we are conducting this study on users. The research
method is mono as it follows a quantitative research approach only. Research technique is
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primarily because the data are taken from customers to know their attitudes towards
promotional tools. Furthermore, the study adopts a deductive approach as it is quantitative
research and we have taken customers from Pakistan in general. We assume that the results
then can also be applied to the other cities. The time horizon is of the study is cross sectional-
as the data is taken at one time from different users. A non-contrived natural study setting is
followed, whereas the type of investigation is correlational as there is no interference.
This research configuration has been found to give help with the examination of the exploration
issue by considering various advantages. The main thought of the blended research
configuration is the use of the quantitative just as the subjective plan to give a good
comprehension of the issue in the examination (Morse, 2016).

Questionnaire was distributed among two hundred and eight respondents in Sindh, Karachi,
Pakistan. The purpose of analysis and also the queries were elaborated to the respondent before
sending the form so they'll simply fill the form with relevant responses. For additional analysis
these forms were codded and entered into SPSS sheet.

Population
The size of the population is vast. The population for this research study is based on adults who
perform grocery shopping for themselves and others manufacturers, retailers and, marketers.
Therefore, all male and female adults above 18 years old is the population of this study. In the
geographical area Karachi Sindh, Pakistan. To gain diverse perspective in data to be generated,
a diverse group of customers, manufacturers, retailers and marketers is selected.

Sample Size

The sample size of this study is about 208 respondents as the population is vast, which are
asked to participate in the online survey (google form) study in order to gather the primary data
for understanding the impact of promotional tools on consumer buying behavior. The people
for the current research are manufacturers, retailers, marketers and customers who have
experience in buying fast-moving consumer products. The confidence level of this research
taken as 95% and the confidence interval 5.
Sampling Technique
The sampling technique is the non - probabilistic technique, used in current research. It uses a
convenient sampling technique because in this sampling process information can be collected
from the related sample or the unit of the study that is easily available. Convenience sampling
is used to collect a large number of questionnaires quickly and at a low cost.

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Instrumentation
The questionnaire survey is selected as the instrument of the research. The research
questionnaire is developed primarily on five variables. Also, other demographic questions such
as; age, gender, income and qualification is also listed in the questionnaire to get the better
results. The questions are close ended based on Likert scales also, ranging from strongly agree
to strongly disagree .Variables of this study are quantitative in nature. There are Free Sample
offers, Price reductions, Free Coupon offers, buy one get one free offer independent variable
in our research. The dependent variable is consumer buying behavior. There are no sub-
dimensions of variables, so it is a uni-Dimensional study.

RESEARCH HYPOTHESIS
H-1. Free Coupon offers have a significant positive impact on Consumer Buying Behavior.

H-2. Price Discounts have a significant positive impact on Consumer Buying Behavior,

H-3. Free Sample offers have a significant positive impact on Consumer Buying Behavior,

H-4. Buy One Get One Free offer has a significant positive impact on Consumer Buying

Behavior.

DATA ANALYSIS
The purpose of this study is to find the relationship between consumer buying behavior and
different promotional tools. The structured questionnaires are distributed among 208 people in
Karachi, Sindh, Pakistan and, the questionnaire is required to collect the primary data. The data
is analyzed through SPSS-20 software, Smart PLS-SEM descriptive analysis factor analysis
and through Microsoft Excel 365 version. The research approach is explanatory because we
are conducting the research on current scenario.

Demographics
Respondent’s profile

Factors Respondents Category Frequency Percentage %

Gender 208 • Male M – 149 Male = 71.6%
• Female F – 59 Female = 28.4%

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Age 208 • 18 – 25 18-25 = 192 18 - 25 = 92.3%

• 26 - 35:
• 35 – 45 26-35 = 12 26 – 35 = 5.8%
• 46 – 55
• 56 Above 36-45=3 36 – 45 = 1.4%

46-55= 1 46 – 55 = 0.5%

56 Above=0 56 Above = 0%
Qualification 208 ● Primary/Mid Primary/Middl Primary/Middle
dle School e School = 1 School = 0.5%
● Metric/O-
Levels Metric/O- Metric/O-Levels
● Intermediate/ Levels = 1 = 0.5%
A-Levels
● Bachelors Intermediate/A Intermediate/A-
● Masters -Levels = 47 Levels = 22.6%
● Doctorate
(PhD.) Bachelors = Bachelors =
144 69.2%

Masters = 15 Masters =7.2%

Doctorate Doctorate (PhD.)

(PhD.) = 0 = 0%

Income 208 • Below 15000 Below 15000 Below 15000

• 15000 – =199 =57.2%
30000
• 30000 – 15000 – 30000 15000 – 30000
50000 =51 =24.5%
• 50000 –
80000 30000 – 50000 30000 – 50000
• 80000 Above =24 =11.5%

50000 – 80000 50000 – 80000

=9 =4.3%

80000 Above 80000 Above =

=5 2.4%

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Journal of Marketing Strategies, Volume 3, Issue 1, January 2021

Instrument Reliability

Construct Reliability and Validity

Cronbach's rho_A Composite Average Variance Extracted
Alpha Reliability (AVE)
B1G1F 0.775 0.530 0.718 0.570
Consumer Buying 0.782 0.507 0.716 0.593
Behaviour
Free Coupons 0.761 0.461 0.735 0.581
Free Samples 0.744 0.527 0.714 0.539
Price Reduction 0.618 0.304 0.646 0.574
Table 3. Reliability

Reliability Analyses

Cronbach’s alpha’ value and composite reliability for all variables in this study are the
acceptable range because more than 0.7 Cronbach’s Alpha and composite reliability can be
acceptable. And also, the average variance extracted (AVE)’s value is acceptable because the
significant value of AVE is 0.5 and the results of the research is above than 0.5 and it can be
acceptable as the table shows above.

Validity
Discriminant Validity

Discriminant Validity
Fornell-Larcker
Criterion
B1G1F Consumer Buying Free Free Price
Behaviour Coupons Samples Reduction
B1G1F 0.685
Consumer Buying 0.597 0.627
Behaviour
Free Coupons 0.596 0.585 0.694
Free Samples 0.546 0.540 0.558 0.582
Price Reduction 0.512 0.506 0.510 0.541 0.523
Table 4. Validity

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Heterotrait-Monotrait Ratio (HTMT)

B1G1F Consumer Free Coupon Free Sample Price
buying Offers Offers Reductions
Behavior
B1G1F
Consumer 0.579
Buying
Behavior
Free Coupon 0.883 0.582
Offers
Free sample 0.717 0.593 0.738
Offers
Price 0.700 0.586 0.844 0.701
Reductions
Table 5

It is the new method for obtaining discriminant validity in partial least squares structural
equation modelling, which is one of the key building blocks of model assessment. If the HTMT
value is below 0.90, discriminant validity has been accepted between two reflective items.

Construct Validity
Cross
Loadings
B1G1F Consumer Buying Free Free Price
Behaviour Coupons Samples Reduction
B1G1-1 0.670 0.684 0.645 0.626 0.634
B1G1-2 0.839 0.678 0.670 0.668 0.674
B1G1-4 0.605 0.600 0.643 0.645 0.660
CBB1 0.603 0.457 0.696 0.631 0.657
CBB2 0.627 0.749 0.684 0.673 0.630
CBB3 0.688 0.628 0.652 0.601 0.636
CBB4 0.638 0.637 0.657 0.223 0.600
FCO2 0.665 0.684 0.686 0.668 0.622
FCO3 0.610 0.601 0.680 0.656 0.609
FCO4 0.665 0.607 0.714 0.623 0.624
FSO1 0.689 0.605 0.617 0.656 0.606
FSO2 0.695 0.670 0.650 0.601 0.677
FSO3 0.680 0.618 0.631 0.641 0.668
FSO4 0.604 0.624 0.668 0.644 0.643
FSO5 0.677 0.676 0.633 0.632 0.615
PR1 0.619 0.622 0.605 0.671 0.638
PR2 0.667 0.683 0.664 0.624 0.613
PR3 0.611 0.677 0.678 0.603 0.696
PR4 0.673 0.646 0.643 0.684 0.697
PR6 0.650 0.648 0.663 0.690 0.631
Table 6

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The degree to which inferences can permissibly be made from the items in study to the
theoretical constructs on which those items are based.

Convergent Validity
Basically, it mentions to how closely the scale is related to other variables and other computes
of the same construct. Not only should the construct correlate with related variables but it
should not correlate with diverse, separated ones. Convergent validity focuses on Average
variance extracted (AVE) and previous studies tell the value of AVE more than 0.5 considered
as reliable and acceptable.

Regression Model:

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Path Coefficients
Mean, STDEV, T-
Values, P-Values
Original Sample Standard T Statistics P
Sample Mean Deviation (|O/STDEV|) Values
(O) (M) (STDEV)
B1G1F -> Consumer 0.141 0.148 0.074 1.913 0.756
Buying Behaviour
Free Coupons -> 0.093 0.098 0.070 1.336 0.782
Consumer Buying
Behaviour
Free Samples -> 0.204 0.225 0.073 2.789 0.005
Consumer Buying
Behaviour
Price Reduction -> 0.155 0.182 0.078 1.992 0.046
Consumer Buying
Behaviour

Table 8

We eliminated some of the items like FCO1, B1G1-3, PR5, PR7 and ultimately when these
items are eliminated than we found construct the reliable value therefore we use them for
further studies. The reliability is appropriate according to the cut off values and the results are
shown in above the diagram. In our studies we found two positive impacts of independent
variables (free sample offers and price reductions) and other two unlikeable impacts of
independent variable (B1G1 offers and free coupon offers) hence, the p- value of B1G1 and
free coupon offers are greater than 0.05 which is insignificant and unacceptable and the p-value
of free sample offers and price reduction are less than 00.05 which is significant and acceptable.

R Square
R Square R Square Adjusted
Consumer Buying Behaviour 0.685 0.669
Table 9

The decision criteria of R2 must be <0.6 but here we are having the value of R 2 0.68 which is
significant, and the impact of independent variable is strongly effecting the dependent variable.
The results are indicating that the dependent variable consumer buying behaviour is influenced
by the independent variables free sample offers, free coupon offers, price reductions and buy
one get one free offers. The research is significant and appropriate.

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CONCLUSION
Today corporations or business organizations spend an extensive amount of the budget on sales
promotion activities. The main idea behind offering such promotion activities is to make the
goods more appealing and valuable to the customers. The organization intends to alter
consumers’ buying behavior and persuasive towards the purchase of the product or service
which they are offering. The purpose of this study is to find the impact of various promotional
tools on consumer buying behavior although various studies have measured the impact of
promotional tools but the study discusses the impact of free samples, price reduction, coupon,
buy one get one free & consumer buying behavior. We are taking the retail sector (FMCG or
other) to conduct the research. The Business environment has gotten to be exceptionally
competitive within the 21st century due to the speed of mechanical alter, framework, and get
to access the data around the globe. This has made the environment exceptionally complex and
shopper inclinations keep changing since of the low exchanging fetched within the market. Due
to this expanding request of consumers within the showcase, the administration of
organizations ought to increment their consideration on attracting and holding its customers.
Promotional tools plays an important role among shoppers, retailers, manufacturers and,
marketers. Through promotional tools manufacturers, retailers, marketers generates more
revenue and sales will be increased. Many retailers, manufacturers, retailers, marketers attract
the customers by using different promotional tools. This study is performed in Karachi, Sindh,
Pakistan to perceive the behavior of consumers related to different promotional tools. The
primary data is collected through structured questionnaire which was adapted from several
related researches. The respondents include both female and male and the sample size is 208
get hold to collect the primary data for the research. According to demographics most
respondents are between 18 to 25 years old and the young in age responses are been focused.
Most respondent’s income level is below 15000 Rupees that means the people of Karachi,
Sindh, Pakistan lays on middle class range and on the basis of poverty level, below 15000
income level has been focused. The research’s mostly respondent’s qualification is bachelors
so, the research focuses on educated audience. Also, the study shows that the talked about
promotional tools plays an important role on consumer buying behavior. Our studies found that
the impact of independent variables on dependent variable is strong. impact of B1G1 and free
sample offers are not reliable and impact of free samples and price reduction are reliable on
consumer buying behavior so, the companies, marketers, manufacturers and, retailers give

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more focus on providing free samples and price reduction at the time of promotions. Hence,
the more investing on free samples and price reduction can give more profit.
As such, the results of this research confirms that promotional tools like free sample offers and
price reduction plays a key on the impacting of consumer buying behavior and the shoppers
are more attracted towards free sample offers and price reductions on the products which they
have interest to buy the products or stimulated to buy the products.

RECOMMENDATIONS

In order to impact the consumer buying behavior effectively. The recommendations have been
made to improve the practices of different promotional tools. The following things may be
noticeable. Buy on get one free offer, free sample offers, free coupon offers, price reductions
can deduct the profitability so the offers should put in carefully. The effect of different
promotional tools is short term. By giving services a service provider can maintain the long
term relationship with customer or consumer by satisfying the their needs. Service provider
must continually attach with related buying behavior researches to reduce the complains of
customers. Promotional tools stimulates the customers to buy more so the promotional should
use on the continues basis but in care full way. Service provider should invest different
promotional tools but in an effective manner. To attract more customers service provider
should organize the different promotional tools on the basis of customer needs. Continually
giving promotions can affect the brand image, equity of a brand and customer loyalty. Due to
shortage of time and resources the sample size is short, the sample size should increase in an
effective manner. This study focuses some of the promotional tools so in some manner many
different promotional should be focused in impact on promotional tools. Research should
focuses on different culture’s people, income level, people’s qualification and their professions
while they are on jobs or on off-jobs. The researcher should visit the places where the business
transactions occurs. That thing will help the researcher for taking the relevant information
regarding the consumer buying behavior. Also, the place plays an important role to attract the
customers. The service provider must promote their products at the right time, at the right place,
to the right audience. The service provider more focus on giving free samples and price
reduction rather than B1G1 and free coupons and more invest in giving free samples and price
reduction of the products for to gain more profit.

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