0% found this document useful (0 votes)
6 views12 pages

Sales Promotions in Vietnam's Garment Sector

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
6 views12 pages

Sales Promotions in Vietnam's Garment Sector

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ĐỀ CƯƠNG NGHIÊN CỨU

[TÊN ĐỀ TÀI]

GROUP 3
VÕ TRẦN NHƯ ANH
TRỊNH THỊ KỲ DUYÊN
MAI NGUYỄN HÀ GIANG
TRẦN PHẠM MAI PHƯƠNG

NGƯỜI HƯỚNG DẪN


TS. PHẠM THỊ TUYẾT TRINH

TP. HỒ CHÍ MINH THÁNG 4/ 2024


TABLE OF CONTENTS
1. Introduction...............................................................................................1
2. Research objective....................................................................................1
3. Research question.....................................................................................2
4. Subject & scope of the study....................................................................2
4.1. Subject of the study................................................................................ 2
4.2. Scope of the study...................................................................................2
5. Literature review......................................................................................2
5.1. Definitions..............................................................................................2
5.2. Theories.................................................................................................. 4
5.3. Previous studies......................................................................................5
5.4. Comments & research gap......................................................................7
6. Methodology..............................................................................................8
6.1. Research hypothesis...........................................................................8
6.2. Study design........................................................................................... 8
7. References..................................................................................................9
8. Appendix..................................................................................................10

LIST OF TABLES
Table 1- Previous studies............................................................................... 7

LIST OF FIGURES
Figure 1- Conceptual framework................................................................10
1. Introduction
Practical reason
In today's competitive landscape, sales promotion has become a critical tool for garment
businesses to drive consumer engagement. Many businesses leverage various
promotional activities to influence consumers' buying behavior. This research specifically
focuses on the Vietnamese garment industry and aims to analyze the impact of sales
promotion strategies on consumers' buying behavior.
Research gap
A brief of the previous study
LIU Yang (2019) illustrated the factors that impact promotion strategies on online
garment retailers and found the best promotional strategies, researchers consider
discounts and coupons, or a combination of both. By examining issues related to
promotions, they aim to identify the most effective promotional approaches for online
retailers in various situations, while Lee & Chen-Yu (2018) used the price-quality–value
model by William B. Dodds et al.(1991) and means-end model by Zeithaml et al.(1988)
to discover the discounts influenced on consumers’ perception. This method helps
marketers grasp how consumers remember product details at different levels of
complexity. In turn, how good a product seems is linked to how valuable consumers
perceive it to be. Several studies explore the impact of sales promotions on consumer
behavior in retail. For instance, Ofosu-Boateng (2020) examined this effect in Ghana,
while Shahzad et al., (2020) focused on the garment industry in Pakistan, highlighting the
importance of sales promotions for influencing consumers buying decisions in this
specific sector.
Research gap
This research investigates how sales promotions, a key element of marketing strategies,
influence consumers buying behaviors within the garment industry in Vietnam. In
simpler terms, the study explores how sales promotion impacts how people decide to
purchase.

2. Research objective
Main objective: Evaluate the effectiveness of sales promotion strategies in increasing
consumer engagement.
Sub-objective:

1
- Finding out the positive effects of sales promotion on consumers' buying
behavior in the garment industry in Vietnam.
- Providing insights on how consumers behave in different situations.

3. Research question
- How does sales promotion affect consumers’ buying behavior in the
garment industry in Viet Nam?

4. Subject & scope of the study

4.1. Subject of the study


- Study population: Consumers buying behavior in the garment industry.
- Subject area: The impact of sales promotion on consumers' buying behavior
in the garment industry in Vietnam.

4.2. Scope of the study


- Space: Vietnam
- Time: April 2024

5. Literature review

5.1. Definitions
Consumer buying behavior is the process of thoughts, feelings, and actions related to the
consumption process, this behavior is the dynamic interaction of the individual thoughts,
feelings, actions, and behavior in the environment by which human beings conduct
exchange aspects of their lives. The environment refers to the external factors that
influence the human being, these factors such as cultural and social forces in society and
personal lives as well as physical and situational forces relate to the actual shopping
experiences (Familmaleki M et al., 2015) . Consumers base their purchase decisions on
perceived value, and their willingness to buy increases as their perception of value
increases (Lee & Chen-Yu, 2018) . Relating to buying behavior, consumers usually have
endless demands to fulfill their needs and satisfaction to obtain something new or better
as every individual has their own behavior, attitude, and thoughts when choosing

2
products, and services and making purchase decisions (Osman et al., 2011). It is defined
as the total amount of attitude, intent, and the way a consumer makes his or her decision
in the marketplace. Consumer buying behavior is the most discussed topic in marketing
research. Consumer buying behaviors are processed by recognizing the consumer needs,
wants, demands, and desires so that they can fulfill their physical and psychological need
(Shahzad et al., 2020) . Consumer behavior is a behavioral process that includes
searching, choosing, purchasing, and using products and services to respond to the needs
and desires of each individual when they interact with products or services. It includes
factors such as buying habits, attitudes, and loyalty. Consumers buying behavior can be
influenced by a variety of factors, such as personal preferences, cultural-social, and
marketing efforts. It is valuable for businesses to understand this process because it helps
them to improve their marketing strategies to the marketing efforts that have successfully
influenced consumers to buy for a long time.

Sales promotion is one of the four aspects of the promotional mix along with advertising,
personal selling, and public relations. Sales promotions which are also known as below-
the-line promotions, are methods that are used by marketers to attract consumers. Sales
promotions have been in use in trading for a long time (Ofosu-Boateng, 2020). Sales
promotion is the process of persuading potential consumers; the company’s
communication strategy is to promote an increase in sales. Sales promotion is a short-
term tactic along with advertising, public relations, and personal selling for building long-
term consumer loyalty. The sales promotion is consumer-focused to boost the sales
number. At the core sales promotion is the marketing activity that adds to the basic value
proposition behind a product mostly for a limited time in order to stimulate the
consumers' purchase. It may either be direct to the consumers the intermediaries; or
retailers. Sale promotions are short-term promotional techniques to induce consumers to
respond to a new product in the market or a product that has not received a lot of
attention. The promotional activities are used to increase the sales of the product rather
by attracting new consumers or by retaining old consumers by various means. The sales
promotion directly deals with product purchasing, enhancing the value of the product by
either reducing the overall cost of the product or by adding more benefits to the regular
purchasing price (Anuraj Nakarmi, 2018) . The results which we get from the sales
promotion are the use of the high amount of reserve, inviting a lot of new consumers and
additional increase in sales. All the marketing activities are linked with sales promotions
that give outcomes in growing consumer purchases and improving intermediaries or
retailers’ efficiency and cooperation (Mughal et al., 2014) . One of the benefits of sales
promotion is that it gives consumers to think and differentiate between the offerings of
the brand. Sales Promotional tools usually involve discounts, coupons, free items, and

3
samples. Sales promotion is the core of integrated marketing communications. Different
types of promotional stated that the intention of promotional activities should be to retain
consumers and attract new consumer groups (Shahzad et al., 2020) . Overall, sales
promotion is a valuable tool to stimulate sales and build long-term relationships with
consumers. By offering incentives like discounts, coupons, and gifts, businesses can
attract new consumers, encourage repeat purchases, and clear out inventory.

5.2. Theories
Coupons:
Coupons have a positive relationship with consumer buying behavior. In previous
research, Mishra et al. (2024) have shown that 91% of consumers who use coupons are
more likely to make repeat purchases of the same brand; 74% of coupon users do so
because they find coupons to be incredibly helpful and handy. The usage of coupons is a
kind of sales promotion used by the marketer. It is a kind of consumer incentive in the
form of a discounted product voucher or certificate (Pacheco & Rahman, 2015). When
clients redeem the coupon, only then will the price drop. Marketers use coupons to
encourage new consumers to try their products and to strengthen existing relationships
with existing consumers. Once the discount code has expired, the regular price of the
product will be reinstated. Marketers may identify, influence, and quantify consumers’
buying behavior with this sort of ad campaign. Consumers will be quite happy if they can
save a significant amount of money with each purchase. Consumers who use the voucher
are likely to continue buying items from the same brand (Pacheco & Rahman, 2015).

Price Discounts:
Price Discounts have a positive relationship with consumer buying behavior. According
to Bhatti, (2018) , price plays an important role in attracting and forming consumers'
consideration and purchase intention. Discounted price means not only the reduced price,
it also getting the same services by differentiating price for the same product; it is a
deduction of specific money from the total price for a short period to enhance the sales
and profits of the consumers (Bhatti, 2018).Price discount offers monetary benefits to the
consumers during the purchase. The price discount has two types of effects on the
consumers’ behavior. When a brand promotes offers more than others, it is perceived as
low in quality, and on the other hand the brand offers less discount is assumed high in
quality (Chandra et al., 2018).

Buy-one-get-one-free:

4
Buy-one-get-one-free has a positive relationship with consumer buying behavior.
Technology promotion "buy one get one free" is one of the types of bonus packages in
which consumers are offered an additional product at the normal price, but it was found
in an improved package. The consumers could easily be influenced to purchase the
produce because there is no condition of any additional price and it should be more
valued by the consumers to be perceived (Sinha & Smith, 2000).
Buy and get one free scheme is one type of popular product volume discount
nonmonetary sales promotions scheme in which the consumer gets two or more products
of the same type for the price of one, or receives a free product by purchasing some other
product. Promotions such as buy one get one free, buy two get one for free, and so on are
frequently used to generate unplanned purchases (Inman et al., 2009).

5.3. Previous studies


LIU Yang (2019)analyzed the empirical for online garment retailers’ optimal promotion
strategies, especially about discounts, coupons, or both factors that greatly influence
consumers' purchasing decisions, creating conditions for consumers to access products
and services through quantitative methods to investigate the promotion-related issues.
The research showed the difference between discounts and coupons, and then, pointed
out how discounts and coupons affected online retailers’ performance. Among these
factors, the two inherent attributes of a product—i.e., product life cycle (usually including
a product’s three stages: introduction, maturity, and decline) and price level (usually
including three price levels: low, medium, and high)—play a significantly important role
when an online retailer design an effective promotion strategy.

Lee & Chen-Yu (2018)applied the price-quality-value model and means-end model to study
how effects of price discounts on consumers’ perceptions of savings, quality, and value
for apparel products although price promotion is popular in the apparel industry because
of a short product life cycle. Finally, consumers base their purchase decisions on
perceived value, and their willingness to buy increases as their perception of value
increases. The mediating role of the price discount effect in the relationships between
price discounts and consumers’ perceptions of savings, quality, and value, the direct
effects of perceived savings on perceived value and of perceived quality on perceived
value, and the direct effect of perceived value on purchase intentions, particularly in
online apparel shopping.

(Shahzad et al., 2020) analyze the impact of sales promotion on consumer buying
behavior in the case of the garments industry of Pakistan. They used the survey method

5
by distributing the questionnaire to the respondents. This research has shown that sales
promotion plays a big role in buying behavior. According to the research
(Salelaw & Singh, 2016)
, sales promotion is the only tool that generates profits for the company in a short
time. The research framework used provides a better insight into how the consumer
behaves in different situations.

(Ofosu-Boateng, 2020) analyzes the influence of consumer sales promotion on


consumers’ purchasing behavior in the retailing of consumer goods in Tema, Ghana. A
convenience sampling technique was used to gather data from a sample of 220
respondents in Tema, Ghana, using a structured interview guide and data analyses carried
out using SPSS version 20. The findings of the study showed a significant relationship
between consumer sales promotion and consumers’ purchasing behavior.

Research Subject Method Main Result

Lee and Effects of price The price- Consumers base their purchase decisions
Chen-Yu discounts on quality–value on perceived value, and their willingness
(2018) consumers’ model and to buy increases as their perception of
perceptions of means-end value increases. The mediating role of
savings, quality, model. the price discount effect in the
and value for relationships between price discounts and
apparel products. consumers’ perceptions of savings,
quality, and value, the direct effects of
perceived savings on perceived value and
of perceived quality on perceived value,
and the direct effect of perceived value
on purchase intentions, particularly in
online apparel shopping.

LIU Yang The empirical for Quantitative The research showed the difference
(2019) online garment methods between discounts and coupons, and
retailers’ optimal then, pointed out how discounts and
promotion coupons affected online retailers’
strategies, performance. Among these factors, the
especially about two inherent attributes of a product—i.e.,

6
discounts, product life cycle (usually including a
coupons, or both product’s three stages: introduction,
factors that maturity, and decline) and price level
greatly influence (usually including three price levels: low,
consumers' medium, and high)—play a significantly
purchasing important role when an online retailer
decisions. design an effective promotion strategy.

Shahzad K, The impact of Survey method This research has shown that sales
Bhatt A, sales promotion by distributing promotion plays a big role in buying
Talat et al on consumer the behavior. According to the
(2020) buying behavior questionnaire research (Salelaw & Singh, 2016) , sales
in the case of the to the promotion is the only tool that generates
garments respondents. profits for the company in a short time.
industry of The research framework used provides a
Pakistan. better insight into how the consumer
behaves in different situations.

Ibrahim Influence of A convenience The findings of the study showed a


Ofosu- Consumer Sales sampling significant relationship between
Boateng Promotion on technique was consumer sales promotion and
(2020) Consumers’ used to gather consumers’ purchasing behavior.
Purchasing data from a
Behavior of the sample of 220
Retailing of respondents in
Consumer Goods Tema, Ghana,
in Tema, Ghana using a
structured
interview guide
and data
analyses
carried out
using SPSS
version 20.
Table 1- Previous studies

7
5.4. Comments & research gap
The study highlights the importance of sales promotional tools on consumer buying
behavior in the garment industry in Vietnam. Numerous studies have investigated the
relationship between sales promotion and consumer behaviors, for instance,
LIU Yang (2019)
pointed out the impact of discounts and coupons or both on online garment
retailers’ promotion strategies, while Lee & Chen-Yu (2018) used methods to show the
effects of price discounts on consumers’ perceptions. Moreover,
(Ofosu-Boateng, 2020; Shahzad et al., 2020)
chose Ghana, and Pakistan markets respectively in their studies.
These findings create a need for further research to reconcile the inconsistencies and
better understand the true effect of sales promotion on consumer behavior. In order to
better understand how sales promotions influence consumers buying behaviors within the
Vietnamese garment industry, we conducted a focused study.

6. Methodology

6.1. Research hypothesis

Coupons

Discounts
Consumer Buying Behavior

Buy-one-get-
one free

Figure 1- Conceptual framework

6.2. Study design


Secondary data would involve the collection of data through published reports, articles,
and libraries. The primary data would be collected by the researcher from a first-hand
source, using methods like surveys, interviews, or experiments. In this study, we opted
for a cross-sectional research design within the qualitative reserve population that has
been taken in this study would be the people arch framework, where the number of

8
interactions with the subjects is one-shot. Additionally, we employed a retrospective
approach, utilizing existing data to make improvements in the study. Furthermore, the
research design is non-experimental, as we investigate the factors in sales promotion that
influence consumers buying behavior. The data for this study was collected using a
survey questionnaire, which is a primary data collection method. The population that has
been taken in this study would be the people of Vietnam. Non-probability sampling
method would be used in this study. The items taken in the questionnaire were developed
on the basis of sales promotion items namely, Discounts, Coupons, Buy-one-get-one-free,
and their impact on consumer buying behavior. The questionnaire has been made on the
foundation of a 5-point Likert scale.

7. References
Anuraj Nakarmi. (2018). Effect of sales promotion on consumer behavior.
Bhatti, A. (2018). Science Arena Publications International journal of Business Management
Sales Promotion and Price Discount Effect on Consumer Purchase Intention with the
Moderating Role of Social Media in Pakistan. 3(4), 50–58. [Link]
Chandra, S., Mazumdar, S., Suman, U., & Sayandeep Chandra, C. (2018). Impact of sales
promotional tools on the consumers buying behaviour: Study related with apparel
retailing business. 4(10), 23–29. [Link]
Familmaleki M, Aghighi A, & Hamidi K. (2015). Analyzing the Influence of Sales Promotion
on Customer Purchasing Behavior. International Journal of Economics and Management
Sciences, 04(04). [Link]
Inman, J. J., Winer, R. S., Ferraro, R., & Frey, A. W. (2009). The Interplay Among Category
Characteristics, Customer Characteristics, and Customer Activities on In-Store Decision
Making. Journal of Marketing, 73, 1547–7185.
Lee, J. E., & Chen-Yu, J. H. (2018). Effects of price discount on consumers’ perceptions of
savings, quality, and value for apparel products: mediating effect of price discount affect.
Fashion and Textiles, 5(1). [Link]
LIU Yang. (2019). Discount, coupon, or both? An empirical data-based analysis for online
garment retailers’ optimal promotion strategies. [Link]
Mishra, M., Kushwaha, R., & Gupta, N. (2024). Impact of sales promotion on consumer
buying behavior in the apparel industry. Cogent Business and Management, 11(1).
[Link]
Mughal, A., Mehmood, A., Mohi-ud-deen, A., & Ahmad, B. (2014). The Impact of
Promotional Tools on Consumer Buying Behavior: A Study from Pakistan. Journal of
Public Administration and Governance, 4(3), 402–414.
[Link]
9
Ofosu-Boateng, I. (2020). Influence of Consumer Sales Promotion on Consumers’ Purchasing
Behaviour of the Retailing of Consumer Goods in Tema, Ghana. Journal of Marketing
Management (JMM), 8(1). [Link]
Osman, S., Yin-Fah, B. C., & Foon, Y. S. (2011). Simulation of Sales Promotions towards
Buying Behavior among University Students. International Journal of Marketing Studies,
3(3). [Link]
Pacheco, B. G., & Rahman, A. (2015). Effects of sales promotion type and promotion depth
on consumer perceptions: the moderating role of retailer reputation. International Review
of Retail, Distribution and Consumer Research, 25(1), 72–86.
[Link]
Salelaw, G. T., & Singh, A. (2016). The Impact of Sales Promotion on Brand Equity: The
Case of Brewery Industry. An International Peer-Reviewed Journal, 22. [Link]
Shahzad, K., Bhatti, A., Talat, Javaid, A., & Naqvi, S. (2020). Impact of Sales Promotion on
Consumer Buying Behavior: A Case of Garments Industry of Pakistan. International
Journal of Advanced Research in Engineering and Technology (IJARET), 11(10), 104–
114. [Link]
Sinha, I., & Smith, M. F. (2000). Consumers’ Perceptions of Promotional Framing of Price.
Psychology & Marketing, 17(3), 257–275.
William B. Dodds, Kent B. Monroe, & Dhruv Grewal. (1991). Effects of price, brand, and
store information on buyers’ product evaluations. Journal of Marketing Research, 28(3),
307–319.
Zeithaml, V. A., Walker, O. C., Lutz, R., Park, C. W., & Schmalensee, D. (1988). Consumer
Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of
Evidence. Journal of Marketing, 52, 2–22.

8. Appendix
1. SPSS: SPSS version 20, also known as IBM SPSS Statistics 20, is a software
program designed for statistical analysis and data management. It's a popular tool
used in various fields like research, business, education, and healthcare.

10

You might also like